Portfolio Management

VIDEO 3 of 4: How We Identify Knowledge Leaders (3:04) April 15, 2021

Posted by Knowledge Leaders Team in Knowledge Leaders, Portfolio Management

Steve and Bryce describe our process for correcting the obstruction created by current accounting standards. We track down innovation investments in company financial statements, reverse the error, and create a new intangible-adjusted financial history that we use to screen for the Knowledge Leaders that form…

VIDEO 2 of 4: How an Accounting Error Created a Market Anomaly (3:30) April 15, 2021

Posted by Knowledge Leaders Team in Knowledge Leaders, Portfolio Management

The nature of corporate investing has changed, with a greater than ever focus on intellectual property. In this video, Steve and Bryce describe how an outdated accounting rule renders these investments practically invisible, making it difficult to tell the difference between the Knowledge Leaders who…

VIDEO 1 of 4: The Link Between Highly Innovative Companies and Outperformance (2:37) April 15, 2021

Posted by Knowledge Leaders Team in Knowledge Leaders, Portfolio Management

The digital revolution has changed the economics of every industry in every region of the world, creating a growth engine for the last half century and inadvertently, a market anomaly by which highly innovative companies tend to deliver excess returns in the stock market. This…

Mid-Quarter Update: Is it Time to Revisit US Treasury Bonds? March 01, 2021

Posted by Steven Vannelli, CFA in Portfolio Management

In this Mid-Quarter Update presentation, we share our thoughts on the combination of factors setting up the potential for a major asset allocation rotation into US Treasury bonds. Click to download slides: Is it Time to Revisit US Treasury Bonds? Questions? Email us at investmentteam@klcapital.com. …

Party Like Its 1999 January 27, 2021

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

In this Q4 2020 slide presentation of our quarterly strategy report, we discuss: Bob Farrell’s Rules for Trading (#5 and #7 especially resonate with us right now). What the retail trading frenzy, recent IPOs and speculation can tell us about where we are in the…

Mid-Quarter Update: Extreme Euphoria … What’s an Investor to Do? November 30, 2020

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

There couldn’t be a greater cocktail of recent news, with three COVID vaccines showing strong promise and the political transition beginning to formally occur. All this with the backdrop of zero interest rates and a record fiscal deficit. Our thoughts on risks in the equity…

Mid-Quarter Update: Nine+ Negative Inputs for the Equity Market August 18, 2020

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

We believe the risks of an intermediate decline are higher than average and would advocate a more cautious stance toward equities right now. The S&P 500 just turned positive for the year after a wild ride that saw the index plunge 34.07% in 23 trading…

Short Anatomy of a Sell-Off January 31, 2020

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

Sell-offs can start for any number of endogenous or exogenous events. A mentor used to tell me, “There are a million reasons to sell a stock, but one reason to buy.” What he meant was that there are always personal reasons to sell: tuition is…

Consequences of an Inflection in the Chinese Yuan November 21, 2019

Posted by Steven Vannelli, CFA in Economy, Markets, Portfolio Management

As hopes for a trade deal fade, similar to May and August, the CNY is devaluing against the USD again. In our work there are a handful of fairly mechanical relationships that should follow if the CNY continues to devalue. First, in the US, stocks…

Mid-Quarter Update & Slides: Escalation June 04, 2019

Posted by Knowledge Leaders Team in Economy, Markets, Portfolio Management

In this mid-quarter update, entitled “Escalation,” we discuss the backdrop of escalating trade wars and our belief that the environment is more favorable for US Treasury bonds relative to stocks. The trade war is escalating at a time of weakening global growth, thereby weighing further…

Santa’s Gift to Investors: Global Oversold Conditions Present Buying Opportunity December 28, 2018

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

The S&P 500 experienced a waterfall decline in December, something rarely seen. Measuring the decline using a 30-day Wilder Relative Strength Index, it is clear the extremes recently experienced. On Christmas Eve, the S&P 500 punctured 30% on the RSI, something that has only happened…

Mid-Quarter Update: The Fed is Tightening More than it Realizes November 30, 2018

Posted by Knowledge Leaders Team in Economy, Markets, Portfolio Management

The Federal Reserve is in the midst of an historic tightening cycle, and it has begun to impact the economy. The latest casualty is the decline in oil prices, which opens up a new set of possibilities in asset allocation. In this special report, we look at the…

Energy Sector Performance in Context October 30, 2018

Posted by Steven Vannelli, CFA in Knowledge Leaders, Markets, Portfolio Management

Energy is the best performing sector in four of six market-regions. (From two market groups, Developed and Emerging, and three regions, Americas, EMEA, Asia, we get six market-regions.) Among Developed Market sectors, energy is 5th YTD, down about 5% less than the MSCI All Country…

Quarterly Strategy Update: The Investment Consequences of a Normalization in Long Rates October 25, 2018

Posted by Knowledge Leaders Team in Economy, Markets, Portfolio Management

On this quarter’s conference call, Steve and Bryce dissected US Treasury bonds, discussing the message of the rates market and how this is directing asset allocation. The following slide deck covers their discussion of the following: The bond market has enjoyed a 10-year tailwind from…

Quarterly Strategy Update: What We Know, What We Think & What We Are Unsure Of July 26, 2018

Posted by Knowledge Leaders Team in Economy, Markets, Portfolio Management

Recently, fears of a slowdown in global growth brought on by a trade war have led to turbulence in cyclical assets. The US Dollar has risen while commodities and emerging markets have struggled. The Chinese Yuan has depreciated significantly, recalling fears of the 2014-2016 industrial…

Disclosures

The information presented here is for informational purposes only and is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. Hyperlinks may be included in this message that provide direct access to other internet resources, including web sites. While we believe these links are to reliable sources, Knowledge Leaders Capital (“KLC”) has no control over the accuracy or content of information contained on these sites. Although we make every effort to ensure such links are accurate, up to date and relevant, we have no control over pages maintained by external providers. The views expressed by these external providers on their own web pages or on external sites they link to are not necessarily those of Knowledge Leaders Capital.

The information provided on this blog is for illustrative or example purposes only and should not be construed as KLC’s opinion or investment outlook. As of the most recent quarter end, the named companies may have been held by KLC. For full information including additional policies and full disclosures, please visit our website: KnowledgeLeadersCapital.com.

Any reference to Index performance does not represent the performance of any investment product offered by Knowledge Leaders Capital, LLC. An investor cannot invest directly in an index. The performance of client account may vary from the Index performance. Index returns shown are not reflective of actual investor performance nor do they reflect fees and expenses applicable to investing.

Companies are selected for “Spotlights” based on high levels of innovation activities in their respective industries and illustrate innovation being employed across all sectors and geographies. Spotlight selection is separate from stock selection by the investment team. Spotlights are not necessarily representative of investment opportunities and can be selected regardless of investment performance or inclusion as a KLC holding.