HILIX – Q4 2018 Commentary
The Hartford International Value Fund underperformed its benchmark during the fourth quarter and for the full year. The team began to defensively position the portfolio but was not positioned well enough toward year end. Given the recent sell off in the market, the team sees buying opportunities as they focus on companies with low valuations, low relative price, and low expectations.
WATFX – Q4 2018 Commentary
Western Asset Core Bond underperformed during the fourth quarter and lagged the benchmark slightly for the year. The largest relative detractor was the exposure to investment grade credit. Following a period of increased volatility, the team has repositioned the portfolio to take advantage of more attractive pricing across certain sectors.
MWTIX – Q4 2018 Commentary
The MetWest Total Return Bond fund slightly lagged the Agg during the fourth quarter but outpaced the benchmark for the year. The strategy had strong relative performance for the year due to its investment grade credit positioning and exposure to Non-agency MBS. MetWest maintains a defensive positioning with non-cyclical credits, high quality securitized exposure, highly liquid Agency MBS, and a duration in line with the benchmark.
TIREX – Q4 2018 Commentary
The real estate sector sold off during the fourth quarter, but actually gained substantial ground relative to the S&P 500 for the year. The TIAA CREF Real Estate fund slightly was also down for the quarter but slightly outperformed the FTSE Nareit All Equity REIT Index. The team remains focused on long term growth oriented REITs and believes that, following an extended period of underperformance, valuations in real estate are very attractive.
HLMEX – Q4 2018 Commentary
Emerging market equities sold off during the fourth quarter but actually outpaced developed markets on a relative basis. The Harding Loevner Emerging Markets Equity fund underperformed its benchmark for the year driven mostly by sector selection as they faced a significant style headwind. Harding sees long term opportunity in EM, however, as there are new growth opportunities with companies that have taken advantage of research and technology to become multinational and less dependent on their domestic economies.
Attached is a piece put out by Eaton Vance that looks at the effects of the tax cuts enacted at the end of 2017 as it pertains to 2019. Specifically, it looks at what individuals and corporations filing their 2019 tax returns should be aware of.
[Category Market Themes}
Peter Malone, CFA
Research Analyst
Direct: 617.226.0030
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square
Suite 500
Boston, MA 02109
LISIX – Q4 2018 Commentary
Along with nearly all global equity markets in Q4, international developed sold off significantly. During the period, the Lazard Strategic International Equity portfolio did outperform its EAFE benchmark, which is to be expected in periods of extreme volatility. The team is monitoring geopolitical concerns in Europe and Asia but believes that softening policy in the U.S. and the start of Chinese stimulus should help global equity markets.
Crown Castle International Corp. (CCI) had another strong quarter, finishing off a successful 2018. While FFO was lower than expected by the market, site rental revenues came in higher than firm and street estimates. CCI slightly increased its 2019 estiamtes for site rental revenues and adjusted EBITDA, leaving AFFO estimates unchanged. Growth in the towers space continues to be driven by consumer demand for data which leads to investment by mobile carriers. Within the space, CCI is best positioned to take care of carrier needs across towers and small cell/fiber. CCI’s investment in small cells and fiber are performing better than expected and the company’s margins should continue to improve as they increase colocation on their newly developed small cells.
Current Price: $112 TTM Return: 2.2%
Target Price: $125 Position Size: 2%
Continue reading “Crown Castle International ($CCI.US) Q4 2018: Finishing off strong 2018”
Good Morning,
Attached is the most recent Uncommon Sense piece from Mike Arone at SSGA. Mr. Arone explains what he believes will be three market surprises in 2019:
1.) Repeat of U.S. Fiscal Policy
2.) Financials will outperform the broader market
3.) Junk bonds will fail to rebound
As we start the year, investors will read hundreds, even thousands, of different market predictions for the year ahead. Even the smartest market prognosticators with the best track records get these types of things wrong, so Mike’s “surprises” provide an interesting take on forward looking projections.
Thank You,
Pete
Peter Malone, CFA
Research Analyst
Direct: 617.226.0030
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square
Suite 500
Boston, MA 02109
Good Morning,
Attached is the updated holdings piece that provides a snapshot of our ETF and mutual fund investments. Each slide discusses the investment process, performance history, and why we like each product.
If anybody has specific questions please let me know.
Thank You,
Pete
Peter Malone, CFA
Research Analyst
Direct: 617.226.0030
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square
Suite 500
Boston, MA 02109
