2011 Clear Harbor Quarterly Market Outlook
Clear Harbor Outlook: Q4 2011
September 29, 2011
“There’s not been a prior meeting at which matters have had more gravity and at which I’ve been more concerned about the future of the global economy.” –Former U.S. Treasury Secretary Lawrence Summers speaking with Bloomberg News last weekend during the IMF meeting in Washington, D.C.
We entered the second half of 2011 expressing skepticism about earnings expectations on Wall Street for the back half of the year and the sustainability of the U.S. economic recovery. Three months later, it appears that we were not pessimistic enough in our assessment. Over the summer, we witnessed a steady deterioration in global economic conditions exacerbated by the actions of incompetent and irresponsible public officials from Washington, D.C. to Brussels. Meanwhile, the onset of a new political season here in the U.S. suggests gridlock will continue to prevent substantive fiscal policy action to address the situation, and with its stock of real ammunition depleted, the Federal Reserve has been left firing BBs at elephants in its attempts to reverse the tide of economic decay with monetary policy. The markets this past quarter were rattled by several forces.
Clear Harbor Outlook: Q3 2011
June 29, 2011
Summer is finally here, and it’s time for my quarterly commentary to close the first half of what is proving to be a momentous year for Clear Harbor Asset Management. While our clients take off to enjoy sunny vacations with their friends and families, the Clear Harbor team is wrestling with the pullback in the stock market and renewed concerns about the sustainability of the US economic recovery.
I'll address the situation, but first I'd like to express my gratitude and appreciation to our clients for joining Clear Harbor and helping us spread the word about our service. We continue to grow and find new, exciting investment opportunities despite the troubling conditions that are weighing on global financial markets. It's worth noting that many of the securities comprising our client portfolios have little correlation to the direction of major stock indices, and while we're not immune to the mood swings of the market in the short term, we remain confident that our approach will continue to yield superior risk-adjusted returns over time.
Clear Harbor Outlook: Q2 2011
April 1, 2011
Events this quarter solidified our view that investment managers not only need to craft portfolios to capture the positive winds of upwardly sloping markets but also allocate capital in a manner that attempts to mitigate volatility when storm clouds suddenly appear.
We pride ourselves in seeking value in individual security selection across multiple asset classes. In a volatile market, we find significant and justified comfort in our ability to speak with management as a way to either maintain or eliminate conviction in our holdings and investment thesis more generally. This contrasts significantly with investors who allocate capital to ETFs for example where they are placing capital into a trading vehicle that usually represents a segment of the marketplace (geographic or sector specific trading vehicle).i In our opinion investor conviction is highly correlated with the upward or downward slope of the price of the ETF—a recipe that is prone to selling with the herd instead of investing when perhaps others wish to throw in the towel.
Clear Harbor's Outlook for 2011
January 3, 2011
The past year has been one of gratifying and exciting accomplishment for Clear Harbor Asset Management. We have assembled a team of talented professionals who embrace collaboration, a thirst for new ideas, and a desire to provide clients with the best possible investment management expertise. We are proud of the infrastructure that we have built as well as the objectives attained this year. These accomplishments position us well for working with our clients for many years - and even decades - to come.