In this week’s brief, we thought it might be interesting to share our most recent investments in our flagship Focused Value equity strategy. These four investments, shown below in descending chronological order, are Healthcare Services Group (HCSG), Molson Coors (TAP), PlayAGS (AGS), and Rent-A-Center (RCII).
As illustrated below, the longer our holding period, the greater the outperformance versus the broader market.[i]
We feel strongly that the market is entering a phase where valuation and active stock selection will be critical to long term success, a move away from the trend of passive investing. [ii]