Investment Recap Second Quarter 2019

U. S. stocks experienced significant volatility in the second quarter. A poor month of May was followed by a record June upturn as investors tried to sort out the headline news with respect to trade negotiations, Federal Reserve policy and the direction of our economy. Through the second quarter of the year our All-Cap Composite has returned 15.1%, net of fees versus 18.7% for the Russell 3000. After all of the drama of the last three months, our stocks are now back to where they were in April.

We have written in the past about the FANG stocks. Our Winslow clients have held a group of growth stocks we have dubbed CUMDEL (Comcast, Ulta Beauty, Merck, Disney, Estee Lauder and Lululemon). These companies have wonderful growth and yet sell at lower average valuations than the now cult-like FANG stocks. Last week we got encouraging news on the VALUE portion of our stock portfolio; Omnova Solutions accepted a takeover bid from a British chemical company that exceeded the prior day's closing price by more than 55%. This event underscores the dynamic potential of a handful of special situation stocks in the portfolio.