I traded text messages with a friend who is contemplating a Chief Investment Officer role with a large RIA firm. Increasingly it seems Portfolio Managers who spent much of their career working for large, long-only investment managers are looking for a change to where they can operate with more flexibility and creativity. The RIA/Private Client/Trust … Continue reading Long-Term Bullish On RIA/Private Client/Trust Investment Services
Where is the market support coming from? Lipper data (below) shows net fund outflows for Equity funds. Therefore perhaps a sector rotation into Technology funds is providing support for Technology names. We have yet to find fundamental data that would support a bullish near-to-intermediate-term outlook for Technology names, with the exception being the leading streaming … Continue reading Stick With Quality Companies
Update on our "Buy & Hold" mock portfolio. This is an experiment we started last year where we buy quality names into the portfolio and essentially only sell when there is a change in executive management (CEO leaves). Microsoft (tkr: MSFT) is probably the world's most durable company and SS&C Technologies (tkr: SSNC) is one … Continue reading CEORater Mock Portfolio
We created a list of Software CEOs that operate durable businesses and that successfully led their companies through the 2008 downturn (the closest comp to COVID-19). CEO profiles from our CEORater database. Andy Florance. Founder & CEO of CoStar Group (tkr: CSGP).Bill Stone. Founder & CEO of SS&C Technologies (tkr: SSNC).Henry Fernandez. Founder & CEO … Continue reading Battle-Tested Software CEOs
We have seen this movie before. The economy is slowing. This Coronavirus-led slowdown feels much like 2003's SARS outbreak exacerbated by the social media echo chamber. When entering an economic slowdown investors would be wise to understand the level of exposure that portfolio holdings have to discretionary revenue. In Software & Services land this primarily … Continue reading History Repeats Itself and Often Rhymes
Unless your name is Amazon, Apple, Facebook, Google or Microsoft, it is best to pursue vertical go-to-market and product strategies. Only the previously mentioned Technology giants have the requisite scale to take a horizontal approach. We provide examples of "Vertical Leaders" and "At-Risk Horizontal Players". Tickers mentioned: ACN, AMZN, AAPL, AVGO, BOX, CCC, CRM, CSCO, … Continue reading Go Vertical or Go HomePremium
In a software-driven world, Augmented Reality ("AR") is the lens through which we will engage with it. Google has rolled out an AR-enhanced "Maps" application to a limited user set. The AR feature provides highly-specific location data/ navigation assist as an overlay to smartphone screens. The thought is that over time this technology will deliver … Continue reading Software Powers the World. Augmented Reality Is How We Will Engage with It.