Insights from SWS Partners

The following is an excerpt from our SWS Growth Equity quarterly update, our internally-managed strategy based upon an institutionally-designed investment process.

Our routine due diligence efforts continue to reveal evidence supporting the thesis of a bifurcated market, one where growth indices encompass a larger number of companies that are more adept at leveraging innovation to capture market share in comparison to the value cohorts. For anyone with hopes of keeping pace with the broader market, we see this as a mandate for having a growth mindset. Our recent due diligence trip to Consumer Technology Association’s CES conference highlighted many examples of this unfolding.

If you have read any of our briefings, you know that we have a blunt view of the financial services industry and how sophisticated investors can gain an edge in mitigating financial complexity and planning for their financial destinations. We have stated ad nauseam that there’s no longer a secret sauce when it comes to asset allocation or portfolio rebalancing. If computers can do it, why should investors overpay for it?

So how can investors gain an edge?

Our institutional management approach and portfolio due diligence extract actionable insights—and that benefits our clients. For example, in our latest DGO quarterly update, we explored how those calling for a long-overdue market correction are incorrectly pointing the finger at public equities and overlooking one unraveling along the perimeter. Perhaps large private companies who have recently gone public, or those eyeing public share issuance, may be the more likely victims on the chopping block.

Mike Parker outside of the WeWork coworking space in Detroit, Michigan.