Underweight High-Conviction Late Friday night news broke that the DOJ was working on an antitrust investigation into Alphabet Inc., parent of GOOGL/GOOG, and on Monday, according to the Wall Street Journal, the “FTC got…
Given the trade’s extreme volatility, we initiated this trade with a stop loss at the -7% mark. However, this market-neutral trade has outperformed beyond our expectations and is currently up 14% since its inception at the…
In our recent Weekly Report, we initiated a pair trade, going long S&P managed health care/short S&P semiconductors. Given the trade’s extreme volatility, we initiated this trade with a stop loss at the -7…
While health care and tech stocks started the year on a similar footing, a wide gulf has opened that is likely to, at least partially, reverse in the back half of the year. This dichotomy is most evident at the subsector…
With regard to relative macro drivers, managed health care has the upper hand. Relative demand dynamics clearly favor HMOs and are working against chip stocks. Non-farm payroll growth, which drives HMOs revenues, is trouncing…
While health care and tech stocks started the year on a similar footing, a wide gulf has opened that is likely to reverse in the back half of the year. This dichotomy is most evident at the subsector level where managed health…
Highlights Portfolio Strategy Firming relative demand and input cost dynamics, the Medicare For All (MFA)-induced panic selling in HMOs coupled with 5G euphoria buying in semis have set the stage for an exploitable pair trade…
Overweight (High conviction) We have had a high conviction overweight recommendation on the S&P software index since the end of 2017 and the position has made handsome returns in excess of 27% since its inception.…
Apple released its Q1 results last week. While not strong, they were better than the market had feared after the terrible Q4 print. Importantly, management commented that the rate of decline in China had eased…
Overweight The S&P tech hardware, storage & peripherals (THSP) index was cheering yesterday as index heavyweight Apple reported results that, while not strong, were better than the market had feared after the…