Deep Value Strategies 3Q 2019 Letter
Rising global tensions, reoccurring recession fears, and interest rates that are close to 100-year lows have fueled a divide in the marketplace. Portions of the equity market appear to be discounting excessive optimism and others pessimism. The beneficiary of the environment over the past couple of years has been momentum/growth and low-volatility securities and bonds. As we highlighted in our Q2 letter, there has been an increasing amount of crowding in these favored areas of the marketplace, while value equities and cyclicals have been severely overlooked by investors.