Early in the third quarter, it appeared global growth stocks would try to make a comeback, but equity markets came under renewed pressure as the US Federal Reserve made it clear they would fight inflation, even at the expense of economic growth.
As new economic growth forecasts started to come down across markets, investors focused increasingly on earnings growth estimates. Questions about earnings growth affected both equity and debt markets.
This is an environment in which bottom-up stock pickers may have the opportunity to identify true growth companies that are able to use strong balance sheets and internal cash flows to make acquisitions, expand market share and grow earnings.
Our equity portfolio managers and analysts are on the road again, visiting companies and attending conferences in search of such opportunities. Our bond portfolio managers have been shortening the duration of their portfolios, increasing the credit quality, and positioning themselves for future opportunities.
As for the member of our client service team, they are focused on meeting with Pembroke clients to understand their needs.
We are also continuing to hold events both virtually and in person, as well as to provide information about our strategies and market perspectives.
As always, we advise clients to diversify, take a long-term view and never try to time the markets.
Lastly, in recent quarters, we felt Perspectives was becoming too long. While we were delighted to offer new content, we worried that the newsletter contained too many articles to be read in one sitting. We are therefore going to focus on our investment strategies in the quarterly Perspectives pieces and publish features like “On the Road” and our ESG comments in the middle of the quarter. We hope this will strike the balance of providing more content and making it easier to read.
Sincerely,
The Pembroke Team
Other Articles Of Interest
Disclaimer
This report is for the purpose of providing some insight into Pembroke and the Pembroke funds. Past performance is not indicative of future returns. Any securities listed herein, are for informational purposes only and are not intended and should not be construed as investment advice nor is it a recommendation to buy or sell any particular security. Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Pembroke seeks to ensure that the content of this document is correct and up to date but does not guarantee that the content is accurate and complete and does not assume any responsibility for this. Pembroke is not responsible for decisions or actions taken or made on the basis of information contained in this document.
