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Dear Readers,
As the US-China trade war continues to rattle markets, many investors have been looking for opportunities built to withstand the turbulence. That’s led to a recent uptick in single-stock analysis, geared towards traders looking to get granular and avoid broad market gyrations.
These types of strategies give investors the opportunity to go on the offensive. Rather than hiding in the safest corners of the market, they can make informed decisions about which areas are seeing potentially profitable price dislocations.
Bank of America Merrill Lynch says investors should start seeking out high-quality stocks, and provided clients with a handy checklist for identifying them.
Goldman Sachs has run the numbers and found that shares of companies beloved by hedge funds have been beating the market. The firm even went as far as to list their 17 most-loved stocks.
Meanwhile, Morgan Stanley is taking a different approach by looking at the 15 large companies most likely to get acquired. Those stocks would, by extension, likely see a share-price pop.
Here’s a rundown of our other main coverage from last week, which featured commentary from the private-equity industry’s biggest names, deep dives into the issues facing the economy, and continued dispatches from the Milken Institute Global Conference.
A private-equity titan who’s doubled the money in each of his 7 funds shares the biggest investing lessons he’s gathered from 30 years of industry dominance
John Danhakl, a managing partner at the private-equity firm Leonard Green & Partners, has helped launch seven funds over the past 30 years. Each of the funds has either doubled its initial investment or is on pace to do so, and they’ve seen an average gross return of 35%.
As part of a panel discussion at the recent Milken Institute Global Conference, Danhakl shared the nine most important lessons he’d learned from his three decades of experience.
An investor overseeing $17 billion explains her uncommon tactics for finding the market’s biggest cash cows. Here’s how her approach can protect you from a crash.
The US equity yield strategy run by Kera Van Valen of Epoch Investment Partners has a mandate to deliver 8% cash returns per annum over a full market cycle from a combination of dividends, share buybacks, and free-cash-flow growth.
In an interview with Business Insider, Van Valen detailed her approach to finding companies with the greatest cash-generating potential. The methodology used to identify those firms can also be helpful for investors looking to insulate themselves from a potential sell-off.
The investment chief at a $70 billion private-equity behemoth explains how the rise of Amazon and Uber forced him to make a ‘scary’ change to his strategy
Jonathan Coslet, the chief investment officer of the $70 billion private-equity behemoth TPG Capital, has been at the firm since its founding in 1993. He’s been a crucial driving force behind TPG’s growth into one of the world’s 10 biggest private-equity firms.
As part of a panel discussion at the recent Milken Institute Global Conference, Coslet explained why the rise of companies like Amazon and Uber forced him to make a previously unthinkable change to his strategy.
Other good stories from the investing realm:
- A key weapon that helped the US economy recover from the Great Recession could soon wreak havoc on financial markets — and the Fed just confirmed the risk
- US stocks have crushed their European peers by 76% over the past decade. Here’s what Goldman Sachs says needs to happen for Europe to flip the script.
- An under-the-radar signal is providing crucial hints about the next stock-market crash — and trade-war turmoil could soon have it flashing red
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See Also:
- An investor overseeing $17 billion explains her uncommon tactics for finding the market’s biggest cash cows. Here’s how her approach can protect you from a crash.
- MORGAN STANLEY: These 15 large companies are most likely to get acquired within the next 12 months
- US stocks have crushed their European peers by 76% over the past decade. Here’s what Goldman Sachs says needs to happen for Europe to flip the script.
Source: Business Insider – jciolli@businessinsider.com (Joe Ciolli)