Brandon Snow's blog

Opportunities in Japan: lots of *potential* core companies

Brandon Snow's picture

In September, we began discussing some of the highlights from our business trip to Japan. As promised, we wanted to share a bit more with you about our meetings and some of the potential we see there for uncovering core companies.

When we look for new businesses, we target three characteristics:

Risk vs. reward: comments on corporate bonds

Brandon Snow's picture

I wanted to share a few charts that have me thinking more about the risk in corporate bonds. We have spoken about the lack of return potential, relative to risk, within high-yield bonds for a number of years. But a few charts shared by our team recently show these concerns extending into investment grade (IG).


Illuminations from Japan – back in the saddle after a great trip

Brandon Snow's picture

Over the next few weeks we want to offer an assessment of the country, companies and market through a Cambridge lens. Over the course of these blogs I hope you gain a better understanding of how we navigate the globe while staying true to our process and philosophy.

Waking up on the other side (of the world)

Brandon Snow's picture

This week, Steve, Greg and I are in Japan researching and meeting with management teams of various companies. The first thing I thought about when I woke up this morning was that my kids would be off to school. I wondered whether they would be eating oatmeal, cereal or pancakes for breakfast. Then I realized that with the time difference, my kids would be sound asleep right now.

Our trader's insight on volatility

Brandon Snow's picture

Given the abnormally low amounts of volatility of late, we thought it would be appropriate to have our trader, Tyler Hildebrand, provide some insight:

Many people fear volatility, but at Cambridge we believe it presents openings, or as we call them dislocations. A dislocation happens when a market, political or other event causes a separation between the underlying value of a company and the price the market is willing to pay for a stock.

A few interesting charts

Brandon Snow's picture

With asset valuations high these days, it makes it increasingly difficult to find returns without taking on more risk. I wanted to provide a few charts that have helped our framework for navigating this market. I hope they can help you in your process as well.

1)  How would the prices of different sovereign bonds respond to a 1% increase in yield? (Pennies--and in many cases a bill!--in front of a steamroller.):


Subscribe to RSS - Brandon Snow's blog