News & Insight

Quarterly Letters

First Quarter 2013 - Have we entered an epoch of a stagflationary, muddling, sideways economy and market, with frequent spurts of volatility? Herein we explain why we think this is the most likely of four possible scenarios and how our analysis has influenced our investment decisions.

 

Fourth Quarter 2012 - Central banks continue to rev up their massive and coordinated monetary intervention.  The US Federal Reserve is no longer just a referee, but the biggest player in the financial market.  In this letter we discuss distortions created by the Fed’s massive balance sheet and how we will navigate through them.

 

Third Quarter 2012 - Massive central bank intervention across the developed world seems to have stabilized the world economy (for the time being).  Either way, we think our two latest investments, Weight Watchers and LabCorp, should fare quite well in most economic environments.

 

Second Quarter 2012 - The world economy appears to be decelerating.  There is evidence that US fiscal and monetary policy is becoming less effective.  We are positioned conservatively.

 

First Quarter 2012 - During the quarter, we continued to “high-grade” our portfolio and increase its defensive posture.  The letter provides our investment case for three short-term high-yield debt securities from CSC, MGM, and WAL.

 

Fourth Quarter 2011 - 2011 was a year of extreme volatility.  “High-quality” companies significantly outperformed the market.  We review our 2011 results and describe our road map for 2012 which, unfortunately, we expect to look a lot like 2011.

 

Third Quarter 2011 - It is unlikely market volatility will subside in the short-term. In such circumstances, the best thing to do is to focus on business fundamentals rather than market prices.  We review key metrics for our four largest positions: Microsoft, Berkshire Hathaway, Lexmark, and Markel.

 

Second Quarter 2011 - We share our thoughts on the debt ceiling drama and why we think the media's focus misses the point.  We also discuss four new investments: Lexmark, Las Vegas Sands, The Howard Hughes Corporation, and Diana Containerships.

 

First Quarter 2011 - We examine the market's performance and explore economic underpinnings and valuations.  We utilize charts and graphs to try and get a clear picture that keeps things in context.

 

 

Third Quarter 2010 - We discuss the recent, elevated correlation of stock price movements and the macro-driven nature of today's investment markets.  In this context, we detail the rationale for our investment in Microsoft.

 

Second Quarter 2010 - We deviate slightly from our typical style of quarterly letter and focus on two specific holdings in our portfolio: Transocean and Apollo Group.

 

First Quarter 2010 - We discuss multiple sources of sovereign risk that could present near-term problems for US equity markets.  On a positive note, we describe the resilience of companies which, by extension, provides equity investors more ways to survive and thrive in difficult environments.

 

Fourth Quarter 2009 - We discuss the market's current valuation, whether to buy 80-cent dollars or wait for 50-cent dollars, and the history of range-bound markets.

 

Third Quarter 2009 - We question the veracity of the V-shaped recovery thesis, the sustainability of the growing national debt, the implications of doubling the monetary base, and the impact of all three items on stock market valuation.  Plus we discuss "margin of safety" and "career risk."

 

Second Quarter 2009 - We examine the government's "stimulus" programs, dissect the recent stock market rally, and provide our thoughts on investing after the crash.

 

Press Releases

June 2, 2010 - Grey Owl Capital Management Marks One-Year Anniversary Grey Owl Capital Management will host an open house to celebrate a very successful first year amidst one of the most volatile economic and stock market environments in history.  The firm simultaneously announced the hiring of their newest associate, Valori Infanger, who will be responsible for client service and marketing.

April 20, 2010 - Goldmans Alledged Fraud:  Is Anyone Really Surprised? Grey Owl Capital Management Advises Retail Clients of Goldman Sachs and Other Large Brokerage Firms to Seek Independent Advice to Identify Conflicts of Interest

August 24, 2009 - Grey Owl Capital Management, LLC Launches New Investment Management Business: Industry Veterans See Opportunity to Create Differentiated Investment Firm Following the Exposure of Wall Street's Flawed Approach

Articles

 

October 29, 2009 - Non Profit News - Trend: When Tactical Opportunities Knock For Investors

 

September 1, 2009 - Markets Media LLC - Mortgage REITS Still Offer Good Returns

 

August 25, 2009 - Washington Business Journal - Partners start Grey Owl Capital Management

 

August 25, 2009 - Investment News - Ex-Merrill wealth advisers form Grey Owl Capital Management