Trapeze Asset Management Q3 Investor Letter: Bull Market to Keep Roaring; Gold & Oil Undervalued

Trapeze Asset Management, which will undergo a name change to Generation Portfolio Management Corp. on November 30, released its latest quarterly investor letter on November 16. Despite the devastating October, the fund, which is primarily managed by co-founders Randall Abramson and Herbert Abramson, believes we are still in the midst of a bull market and that corporate earnings and valuations will continue to rise.

The fund does see numerous areas of potential concern in the global markets however, which could impact the economy and stock market in the near-term and beyond. They include rising interest rates, growing corporate debt levels, burgeoning pension obligations, and the rise of populism and protectionist trade policies in some Western countries.

The fund is bullish on gold and oil, believing that both assets are currently underpriced, which informed several of the fund’s biggest moves during Q3. Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR), Alphabet Inc. (NASDAQ:GOOGL), CBRE Group, Inc. (NYSE:CBRE), Caesars Entertainment Corporation (NASDAQ:CZR), Equinix, Inc. (REIT) (NASDAQ:EQIX), and IAMGOLD Corporation (NYSE:IAG) were among the new positions opened by Trapeze recently which were discussed in the letter, which can be downloaded here: Trapeze Asset Management Q3 2018.

Disclosure: None