Market Update March 13, 2020– Minimizing Distraction from Market Noise
Fears of a growing COVID-19 (Coronavirus) pandemic are causing anxiety levels to increase while stock prices decrease. Current market volatility is now approaching levels not seen since 2008 when the market wrestled with the global financial crisis. In 2008, it was a Wall Street problem that spilled over to Main Street. Today, it is a Main Street problem that is spilling over to Wall Street. With so much uncertainty creeping in on Wall Street, it is not always easy to take a step back and think about a disciplined approach to investing.
Our Investment Process Remains the Same, Regardless of the Market Environment
At Waycross Partners, we believe that successful investing is a balance between conviction and discipline. Conviction is achieved through our Key Factor Approach to fundamental analysis, which keeps us focused on only the most critical drivers to a company’s earnings. A disciplined approach to risk management is embedded within our investment process as we seek to understand, monitor, and balance both downside risk and upside potential.
This process is the foundation of both Waycross’s long only and long-short investment strategies. Put simply, we emphasize companies that are either leaders in their respective industries or are disrupting their industries through innovation on the long side, and seek to short stocks with weak Key Factors at questionable valuations. We believe this disciplined, focused process allows us to minimize distraction from the market noise that occurs when volatility is heightened.
Our Views on Select Sectors
While equity markets have been put to the test over the past four weeks by Coronavirus and an oil price war, we still believe the best course for investors is to keep calm and remain invested – especially in strategies designed to protect against downside risk. While some stocks will experience long-term losses, others stand to benefit in the near term from falling energy prices, interest rates and a decrease in mobility. There will be many winners and losers to choose from on both the long and the short side. We will continue to monitor our portfolios and take advantage of opportunities as they present themselves.
Waycross Partners, LLC (“Waycross”) is an independent, privately owned investment management firm registered with its principle place of business in Louisville, Kentucky. Waycross three distinct investment strategies to our clients, which are made up of institutional and high net worth individuals.
This material is for informational purposes only and is neither an offer nor solicitation to invest. Please read all offering memorandum, ADVs, and other risk disclosures before investing.
Any projections, market outlooks or estimates in this document are forward looking statements and are based upon certain assumptions. Other events which were not taken into account may occur and may significantly affect the returns or performance . Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. The enclosed material is confidential and not to be reproduced or redistributed in whole or in part without the prior written consent of Waycross Partners. The information in this material is only current as of the date indicated, and may be superseded by subsequent market events or for other reasons. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Any statements of opinion constitute only Waycross Partners’ current opinions, which are subject to change and which Waycross Partners does not undertake to update.