In the third quarter, the familiar story of big tech’s supremacy played out once again, fueled by investors’ rush toward artificial intelligence (AI) exposed opportunities.

We entered the second quarter with an already tariff-leery stock market having sold off 9% from the February highs.

“Elections have consequences.” This axiom has never rung truer on Wall Street than it has in recent months.

The most consequential event of the fourth quarter was, undoubtedly, the U.S. presidential election, which saw a return to the White House for Donald Trump. After a long, drawn-out cycle where many feared it would take days if not weeks to declare a winner, the quick resolution, combined with a GOP sweep of not only the White House but both Houses of Congress, led to a significant stock market rally. Investors cheered the Republican sweep, seen as the most business-friendly outcome, leading to expectations of decreased regulation, an improved merger and acquisition (M&A) environment, and the potential for tax cuts.

Strong equity markets and declining interest rates as a consensus coalesced around the beginning of a Federal Reserve rate-cutting cycle.

While too early to declare victory, the historically elusive “soft landing” is becoming the base case for investors.

Everyone uses insurance, but few people realize how attractive these companies can be from an investment standpoint. The team at Prospector Partners has a collective amount of 100+ years following the insurance industry.

The first quarter of 2024 was marked by a continued pushing out of expectations for when, and by

how much, the Federal Reserve would cut rates, as inflation remained above the Fed’s 2% target and

the U.S. economy remained resilient.

We entered 2023 in the midst of very restrictive monetary policy, a deeply inverted yield curve, significantly higher interest rates and the continued drying up of consumers’ post-academic excess savings

In this short question and answer session, our portfolio managers take on the questions that prospective clients ask us most often during the due diligence process.