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So far Poplar Forest Research has created 31 blog entries.

June 30, 2021 Quarterly Letter

2021-07-28T21:25:57+00:00

With growth stocks having reasserted themselves as interest rates trended lower during the second quarter, some naysayers are already predicting the end of this value cycle. I couldn’t disagree more. For one, I continue to believe that bond yields have separated from reality due to price manipulation on behalf of central banks at home and abroad.

June 30, 2021 Quarterly Letter2021-07-28T21:25:57+00:00

March 31, 2021 Quarterly Letter

2021-05-24T22:59:07+00:00

During these wild market swings, we’ve seen a marked change in the type of companies that investors favor. Former growth darlings are being sold to free up funds to purchase shares of economically-sensitive businesses. Investors want beneficiaries of economic reopening and reflation driven by vaccine deployment and continued fiscal and monetary stimulus. As a result, value stocks have begun to materially outperform growth stocks.

March 31, 2021 Quarterly Letter2021-05-24T22:59:07+00:00

December 31, 2020 Quarterly Letter

2021-05-24T23:04:12+00:00

The most important job for our investment team is to identify situations where embedded expectations are unreasonably low while avoiding stocks that are cheap for good reason (aka value traps). Cheap stocks can stay cheap unless fundamentals turn out to be better than expected. In contrast, the “great” company that merely ends up being “good” often generates disappointing results for its shareholders - just like so many New Year’s Eves.

December 31, 2020 Quarterly Letter2021-05-24T23:04:12+00:00

September 30, 2020 Quarterly Letter

2020-10-01T17:32:50+00:00

While investors seem to be increasingly addicted to free money, I’m becoming ever more worried about the unintended long-term consequences of low rates, especially given the Fed’s new ultra-dovish policy targeting higher inflation. As former Fed Chair Martin said: “What’s good for the United States is good for the New York Stock Exchange. But what’s good for the New York Stock Exchange might not be good for the United States.”

September 30, 2020 Quarterly Letter2020-10-01T17:32:50+00:00

Poplar Forest Analyst Insights: Technology and Communication Services Q&A

2020-08-28T22:20:54+00:00

In this edition of Analyst Insights, Cathy Lloyd talks about what she looks for when evaluating opportunities in Technology and Communication Services, how the COVID-19 pandemic has impacted the industry, and discusses growth opportunities for tech companies beyond 2020.

Poplar Forest Analyst Insights: Technology and Communication Services Q&A2020-08-28T22:20:54+00:00

June 30, 2020 Quarterly Letter

2020-07-01T18:17:04+00:00

I've been thinking about this lately as I've watched the Federal Reserve try to rekindle our economic fire amid the COVID-19 pandemic. In campfire cookery terms, the virus has been like a once in a hundred year downpour that soaked the woodpile -- wet wood doesn’t burn well. Fortunately, the Fed has trillions of dollars of industrial strength lighter fluid. When combined with the dry kindling that is the U.S. Congress’s fiscal stimulus, the economy could soon be cooking again. With our portfolio trading at less than 14x depressed 2020 estimated earnings, we feel very well positioned for recovery.

June 30, 2020 Quarterly Letter2020-07-01T18:17:04+00:00
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