Entries by Lord Abbett Editorial Staff

    Drilling for Oil Bonds

    May 13, 2016 11:33 AM by Lord Abbett Editorial Staff

    While overleveraged exploration and production (E&P) companies most exposed to the shale boom remain pressured, some investment opportunities have arisen.

    While many actively managed fixed-income strategies were underweight the oil sector through most of the commodities correction, some shifted to an overweight of E&P in early winter of 2016, as companies with substantial high-yield debt but solid long-term fundamentals (and no trigger for default) appeared attractive.

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    Argentina and Brazil: Lessons Learned the Hard Way

    May 6, 2016 11:25 AM by Lord Abbett Editorial Staff

    Argentina’s successful return to the capital markets is a reminder that elections matter. Can Brazil turn things around as well?

    It’s been four months since Argentina’s voters ousted former president Cristina de Kirchner’s populist government and replaced it with the business-friendly administration of Mauricio Macri. And the result has been little short of miraculous. Last week, Argentina returned to the international capital markets with the largest ever bond issue from an emerging market economy—its first sovereign sale in more than 15 years—and global bond investors clamored for a share. In the end, the Argentinian issue was four times oversubscribed, and $16.5 billion of sovereign bonds had been sold.

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    2016 Outlook: Value Managers Share Their Views on Earnings Trends for Key Sectors

    December 10, 2015 3:07 PM by Lord Abbett Editorial Staff

    Some earnings estimates in hardest-hit sectors still look too high. 

    Lord Abbett partners Justin Maurer and Tom Maher, the portfolio managers of the micro, small, and smid-cap value products, have updated their earnings and sector outlooks for 2016. Of course, earnings estimates are largely dependent on sectors/end-market exposure, but this is more extreme than usual, given current problems within the energy, materials, and industrials sectors.

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    China's Latest Tech Push

    December 8, 2015 4:03 PM by Lord Abbett Editorial Staff

    China, the world’s largest consumer of semiconductors, is moving aggressively into manufacturing them, which threatens producers in Korea and Taiwan.

    Although China consumes half of the world’s semiconductors (see Chart 1), it doesn’t have a single domestic manufacturer among the 10 biggest chipmakers, according to Bloomberg News. Taiwan and South Korea account for the lion’s share of production. But with China’s government pushing to grow its own semiconductor industry for national security and lessen its dependence on foreign technology, recent deal making suggests a new world order may be in the offing.

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    Fishin' Chips: How M&A Is Transforming Technology

    December 1, 2015 5:18 PM by Lord Abbett Editorial Staff

    The $330 billion global semiconductor industry is undergoing historic consolidation, but innovation in some quarters has stalled, say analysts.

    In 15 years of covering the technology sector, Lord Abbett Research Analyst Eric Ghernati has never seen anything like the merger and acquisition (M&A) activity of the last several years. (See Chart 1.)

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    Finding Value in Volatility: Companies Where M&A is a Core Competency

    November 23, 2015 12:17 PM by Lord Abbett Editorial Staff

    Unlike past cycles, the market is rewarding companies with proven deal making skills.

    (Third of a three-part series)

    In managing small cap, smid cap and micro cap value strategies, Lord Abbett partners and portfolio managers Justin Maurer and Tom Maher continue to focus on U.S.-centric companies that have financial and capital management flexibility to compete strategically. Along those lines, mergers and acquisitions (M&A) have been a significant investment theme—both in terms of potential buyers and sellers. 

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    Finding Value in Volatility: Gauging When Your Stocks Have Hit Bottom

    November 17, 2015 12:35 PM by Lord Abbett Editorial Staff

    Here's how Lord Abbett portfolio managers have scoped out opportunities in a market rife with rich valuations, earnings misses, commodity deflation, and sector sell-offs.

    (Second in a three-part series)

    Has this year of volatility generated more value opportunities than the past?

    “It’s almost been like a ball rolling down a hill,” said Lord Abbett Partner and Portfolio Manager Justin Maurer, who along with Lord Abbett Partner Tom Maher manages the firm’s value equity strategies.  

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    Finding Value in Volatility: A Recipe for Alpha Beta Soup

    November 11, 2015 10:40 AM by Lord Abbett Editorial Staff

    Forget the efficient market hypothesis. Determining intrinsic value in volatile markets rife with "fallen angels," "falling knives," and "dead cat" bounces is no random walk.

    (First of a three-part series.)

    In a recent conversation with a major client, Lord Abbett Partner and Portfolio Manager Tom Maher provided a rich perspective on how he, Lord Abbett Partner Justin Maurer, and the rest of their value team have managed during the latest market volatility.

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    Picking Stocks in the War on Alzheimer's

    October 27, 2015 3:50 PM by Lord Abbett Editorial Staff

    Much is riding on new drugs that may slow the disease, says Lord Abbett Partner and Research Analyst Lavina Talukdar.

    During her 15 years of covering the pharmaceuticals and biotechnology sectors, Lord Abbett Partner and Research Analyst Lavina Talukdar has plumbed the pipelines of a number of companies to assess which drugs have the potential to transform the Alzheimer’s market.

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    Shelter from the Storm

    October 2, 2015 1:25 PM by Lord Abbett Editorial Staff

    When high fliers hit turbulence, stable-growth stocks, such as best-of-breed homebuilders and a home-improvement products retailer, gain favor, especially in a promising housing recovery.

    In light of the recent equity-market pullback, some portfolio managers have taken a series of steps to help mitigate volatility.

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