A Tale of Two Emotions
“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us…”1
Steep market declines are usually cheered by Value investors given the broadening array of attractive investment opportunities. Ultimately, our portfolio will benefit, but we are not cheering the cause. Health risks weigh on the human brain differently than financial risks, and in our current situation, we have both. These concerns, coupled with the logistical challenges of working remotely, have required us to be at our best, and everyone at HCM is rising to the challenge. Investing is an objective, practical, and analytical endeavor, requiring us to filter out the emotional factors and stay focused. So please pardon us in advance if our emphasis throughout this paper centers on how we are positioning the portfolio to benefit from market disruption — know that we do so with objectivity and not callousness. We are managing through market behavior that investors have not seen in 90 years. This Investment Perspectives focuses on the significant issues that present us with an unprecedented investment landscape.