Longboard Funds – What’s Trending Now?

What’s Trending Now? by Stephen Scott

Longboard Funds’ portfolio managers are long-term trend followers, so we make decisions solely based on a disciplined, rules-based process.

But we often get questions from you about how current events potentially relate to certain long-term trends.

A Look At The Portfolio Of Billionaire Charlie Munger

Charlie MungerCharlie Munger is one of the world's greatest investors. Over the past six decades, he's helped his business partner and friend, Warren Buffett, turn a struggling textile business called Berkshire Hathaway into one of America's largest firms. Q3 2020 hedge fund letters, conferences and more If you’re looking for value stocks, and


Below is our team’s bi-weekly dive into the details.

down-arrowOil

  • Reserves increased by 1.1 million barrels due to U.S. production increase
  • Oversupply concerns due to resumption of output from fracking and oil sands
  • Demand forecast for 2016 down almost 1 million barrels

down-arrowJapanese Equities

  • Stronger demand for yen hurting equities
  • Markets pricing in 10 trllion yen stimulus package since Abe re-election
  • Bank of Japan confirmed no intention to implement helicopter money

down-arrowEuropean Equities

  • Growth concerns due to Brexit and high debt levels of PIIGS
  • Banks under continued pressure from low interest rates
  • Italian banks dragging markets lower

up-arrowCotton

  • USDA reporting production cuts for 2016 and 2017
  • Tight supply globally, especially China and India
  • Global trade forecast for 2016-2017 raised by 1 million bales

up-arrowREITs

  • Low interest rates forcing investors to seek alternative sources of yield
  • REITs have considerably less leverage than pre-crisis levels
  • U.S. Fed less likely to raise rates this year

up-arrowUtilities

  • Low interest rates forcing investors to seek alternative sources of yield
  • Low volatility attractive in uncertain economic environment
  • Sector has stable revenue streams, is highly regulated