Every summer Boyar Research produces a thematic piece where we discuss a theme, sector or area of the economy that is currently out of favor on Wall Street and select stocks that we believe will benefit from the topic chosen. Our topics have often been quite controversial at the time of publication but in the long-run have proven to be prophetic.
This year’s issue was titled Boyar’s Guide to Profiting from Uncertainty. We began the issue with a review of behavioral finance and came to the conclusion that uncertainty cannot be arbitraged away (unlike some common pockets of opportunities such as spinoffs), and will continue to produce mispriced investments. We then asked where an investor should look currently to profit from uncertainty.
We highlighted several themes that are currently out of favor or overlooked and selected high quality companies that we believe offer some attractive investment opportunities. We looked for high quality companies that have been depressed for various reasons such as a play on the reversal of the underperformance of value vs. growth and active vs. passive investment management strategies; a growing hotel franchise recently disrupted by its derivative oil and gas industry exposure; a high quality global industrial company overly punished by macro/currency headwinds; and a unique health care opportunity created by an M&A/regulatory overhang.
To receive the 17 page introduction of this issue, please click here.