The Complex Role of Valuation within IT

Introduction: Customer Complaint Department
Cross Sectional Analysis: Valuation & Tech Returns
Cross Sectional Within Time Series: Value & Tech Returns II
The Past, The Recent Past & The Promise of Tomorrow: Why We Like Tech Today
Characteristics of Today’s Tech Investments
Conclusions
Appendix: Current Top & Bottom Deciles of IT

Introduction: Customer Complaint Department

Over the last several months readers of our service have noticed that our portfolio weighting in IT has grown considerably with the November picks expanding that bet yet again.

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As a reminder for our Financial Advisors: our models are available on a continuous basis, and most have been in production for over a decade. If you are looking for simple, concentrated, low turnover, and tax efficient model portfolios we would like to talk with you. KCR also offers a wide range of easy-to-use but sophisticated tools. Our toolkits can help identify mispriced stocks with the best and worst risk/reward characteristics, estimate a stock’s duration and warn you when a company is engaging in low-quality accounting. Over the last 12 years, KCR has built and offers time-tested and class-leading products built by experienced and proven money managers for fixed to low prices.
Kailash Capital’s sister company, L2 Asset Management, runs market neutral, long/short, large-cap, and mid-cap long-only portfolios with a value and quality bias. L2 employs a highly disciplined investment process characterized by moderate concentration, low turnover, high tax efficiency, and low fees. While nobody can predict the future, we believe the recent resurgence in risk-adjusted returns seen across all products is the beginning of what may be a long period where speculation is punished, and prudence and patience rewarded.

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