Eugene Barbaneagra, Portfolio Manager, joins hosts Steve Sedgwick and Julianna Tatelbaum, and guest host Doug Peterson, CEO of S&P Global in-studio to discuss the European markets. He shares insight on goals-based investing, our value investment approach and long-term outlook.
Watch the Full Segment Here
IPO: An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance.
Quantitative: Quantitative analysis is based on computer-driven models.
P/E: Price to earnings ratio is the ratio of a company's share price to its earnings over the past 12 months, which can be is used to help determine whether a stock is undervalued or overvalued.
Price-to-book: The price-to-book ratio compares a company's market value to its book value. The market value of a company is its share price multiplied by the number of outstanding shares. The book value is the net assets of a company.
Long/short: A long position is positioning to gain from future strength of a particular security or currency. A short position is positioning to gain from future weakness of a particular security or currency.
Long duration: Long duration bonds are more price-sensitive to changes in interest rates.
Data from famed academic and author Ken French1 show that prolonged periods (defined as rolling five-year time horizons) in which U.S. value underperforms growth have historically been followed by significant outperformance by value over the following three years. Although recent returns may imply otherwise, U.S. value has rebounded and outperformed in more than 70% of these scenarios since 1927.
This information is provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company. The material included herein is based on the views of SIMC. Statements that are not factual in nature, including opinions, projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice. Nothing herein is intended to be a forecast of future events, or a guarantee of future results.
This information should not be relied upon by the reader as research or investment advice. There are risks involved with investing including loss of principal. The mention of specific securities does not constitute a solicitation or offer to transact in any security, and is provided for illustrative purposes only. Performance of securities and indices shown will vary.
Statements regarding ability to take short positions are in regards to portfolios managed by Mr. Barbaneagra.
1 Data Library, courtesy of Professor Kenneth R. French. Tuck School of Business, Dartmouth College. As of May 2019.