Entries filed under 'Value Investing'

    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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