In today’s briefing:
- Good Morning Japan | The Hawk Vs The Dove..the Dove Has It !
- Baron Funds Q3 2022 Report – Letter From Ron
- Merion Road Capital Q3 2022 Investor Letter
- SaltLight Capital Management Q3 2022 Co-Investor Letter
- Weekly Stock Bullfinder – Week of 11/14
Good Morning Japan | The Hawk Vs The Dove..the Dove Has It !
- Good Morning Japan: We strive to provide the very best breaking macro, stock and thematic overnight news that will impact your trading day in Japan. FOLLOW US to keep abreast!
- OVERNIGHT: Partial reversal – Sell BETA/Buy Momentum; Contrasting views from the Fed; Amazon cuts 10,000; FedEx furloughs workers – probably the doves it; Positive China – finally the bottom in?
- JAPAN: Flat open vs Cash on the NKY; Buybacks continues – now the megabanks get involved; Not a heavy news day but watch out for Matsumotokio(3088) -strong 2Qs
Baron Funds Q3 2022 Report – Letter From Ron
- Baron is an asset management firm focused on delivering growth equity investment solutions known for long-term, fundamental, active approach to growth investing.
- We expect additional, substantial appreciation for Tesla and SpaceX.
- 84.3% of our assets are NOT invested in Tesla and SpaceX, but rather are invested in other exceptionally attractive growth companies.
- We have always believed that any recessions or declines in the value of our growth business holdings would not be long-lasting.
- Think long term about everything, guard your reputation zealously, make sure your balance sheet is as close to impregnable as possible.
Merion Road Capital Q3 2022 Investor Letter
- Merion Road Capital Management LLC is a registered investment adviser. We focus on value-oriented investing through rigorous fundamental analysis of a company’s operations.
- Q3 2022 was a disappointing quarter.
- We should extend our investment horizon exactly when others shorten theirs.
SaltLight Capital Management Q3 2022 Co-Investor Letter
- SaltLight Capital Management started in 2015 and has grown tremendously, with assets under management doubling each year. Our investment process is continuously evolving.
- Despite the market downturn our cumulative redemptions are a mere basis points of the fund.
- We are more concerned with the ‘two birds in the bush’ so to speak; and then extending the adage further: what is the price implying to catch these plump birds.
- With a more concentrated portfolio of businesses, portfolio volatility can be higher, but volatility can be compensated with higher returns.
- We have no conviction about the direction of the market – we don’t believe one can consistently predict this with high accuracy.
Weekly Stock Bullfinder – Week of 11/14
- This past week the news was dominated by political midterm election results and a brewing crypto market implosion but also featured a late week rally after a surprising CPI inflation print which beat estimates on Thursday.
- While pundits can posit various reasons for Thursday and Friday’s market rallies, there appears to be at least a few brewing catalysts that could carry positive momentum into 2023 which include 1) continued downside surprises in either CPI or PCE inflation data which would allow the Fed to back off its aggressive tightening campaign 2) steps leading to Chinese economy reopening reducing existing supply chain bottlenecks 3) steps leading to a ceasefire or peace agreement in Ukraine and 4) significant improvement in EU energy security situation resulting in lower EU inflation.
- In the near term, it appears as of this writing that political gridlock in Washington D.C. will be upon us for the next 2 years removing the worst case scenarios of any significant market-negative legislation (i.e. tax hikes, etc.) being passed.
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