Asset Management Investor Resources

Charles Rinehart, CFA, CAIA, Chief Investment Officer at Johnson Asset Management recently contributed to the ChartMasters segment for Asset TV.  In this video Charles explains the Fed’s history of cutting rates too late and the forces that can hinder economic growth. “Fed Cuts Helpful, But Not All-Clear”. Asset TV, 10/10/2024

Brandon Zureick, CFA, Managing Director and Portfolio Manager, shares his perspective on the Federal Reserve's decision to cut interest rates by half a percent. He notes that while the change may not significantly alter economic conditions, it does convey a clear message to businesses and consumers that the Fed is committed to lowering interest rates. "Interest rate cuts bring good news, but consumers may not feel a huge impact”  Spectrum News 1  9/21/2024

Managing Director of Research & Senior Portfolio Manager Brian Kute, CFA, emphasizes the importance of investing in quality small and mid-cap (SMID) companies in this Financial Advisor article.  Read more here about our approach in Brian’s article “An Approach To Future-Proofing Mid- And Small-Cap Portfolios.” Financial Advisor 8/15/2024

While small and mid cap valuations continue to look historically attractive relative to U.S. large cap, our latest Equity iQ addresses two important risk considerations for investors contemplating tactical shifts within their equity portfolios. 

Johnson Asset Management was honored to have our recent Bond iQ written by Research Analyst, Kristen Rettig, CFA, featured in the 2024 Third Quarter Georgia Association of Public Pension Trustees Newsletter. 

While inflation and macroeconomic uncertainty have made the current cycle unique, our latest Chart iQ looks back to the end of prior Federal Reserve hiking cycles for hints on the potential direction of yields from here.

Second Quarter 2024 SMID Cap Core Commentary Video Update

In our latest Equity iQ, Bryan Andress, CFA and Landon Peterson examine the relationship between interest rates and equity valuation.  By dissecting changes in the stock market P/E multiple, their analysis identifies the impact of interest rates while also shedding light on how other factors have influenced equity valuations in recent years.

Over the last six months, there has been a notable divergence between the “Establishment” and “Household” employment surveys – two important measures of labor market health.  In our latest Bond iQ, Kristen Rettig, CFA summarizes these differences and explains that recent data suggests revisions may play a key role in the future alignment of these two labor market estimates.

Chief Investment Officer Charles Rinehart, CFA, CAIA weighs in on Apple’s Worldwide Developers Conference’s expected announcement of new artificial intelligence features, nothing that in the extremely competitive AI market it is important that Apple can start showing progress. “Apple Is Under Pressure to Deliver on AI at Monday’s WWDC Event.” Wall Street Journal 6/10/2024

While cash has been a beneficial allocation for lower-risk assets in recent years, with the Fed now openly communicating about the timing for potential rate cuts, this dynamic may soon change. In our most recent Bond iQ, Brandon Zureick and Landon Peterson suggest that investors holding excess cash in portfolios should consider moving into short duration fixed income and demonstrate the value it can add over time.

In a recent Asset TV Masterclass, Brandon Zureick offered perspective on risks and opportunities in Fixed Income markets.  Along with Brian Kennedy of Loomis, Sayles & Company, the conversation covered treasury issuance trends, the current environment in credit markets, the growth of Private Credit, as well as themes that could impact inflation and interest rates going forward.

A focus on investing in quality companies sounds good, but what does that actually mean in practice?  In this paper, Managing Director of Research & Senior Portfolio Manager Brian Kute, CFA, Lead PM on Johnson’s SMID Cap Core strategy and the Johnson Opportunity Fund (JOPPX), defines what quality means for Johnson Asset Management and explains how our research team identifies high-quality companies in the SMID Cap space.  He also demonstrates that a focus on high-quality stocks has historically provided long-term outperformance with downside protection and reduced volatility.

Managing Director and Portfolio Manager Brandon Zureick, CFA discussed the Fed’s decision to keep rates steady at the most recent FOMC meeting with Spectrum News 1, noting that the Fed pushed back a bit on the notion they are going to be lowering rates in the very near term. “The Federal Reserve isn’t moving so fast on cutting rates” Spectrum News 1, 2/4/2024

Managing Director and Portfolio Manager Brandon Zureick, CFA weighs in on how the large bank failures that occurred in early 2023 have continued to impact the banking industry. Noting how these failures may increase regulations on all banks moving forward. "Last year’s SVB Signature Bank failures are now costing Ohio banks hundreds of millions of dollars.” Cleveland.com, 1/26/2024

Managing Director and Portfolio Manager Brandon Zureick, CFA discussed the interest rate outlook for 2024 with Spectrum News 1, noting that steady interest rates and slowing economic growth could bring positive developments for consumers. “Consumers May See Some Relief in 2024” Spectrum News 1, 12/31/2023

Within the domestic equity market, both small and mid cap stocks look attractive relative to large caps when compared on a valuation basis.  Our latest Chart iQ installment illustrates a simple framework we use to make this comparison.

Johnson Asset Management was honored to have our recent Equity iQ written by Managing Director of Research & Senior Portfolio Manager, Brian Kute, CFA, featured in the 2023 Third Quarter Georgia Association of Public Pension Trustees Newsletter. 

Over the past 15+ years, the number of unprofitable companies within the U.S. equity universe has been on the rise, particularly within small and mid cap. In our inaugural EquityiQ, Brian Kute discusses the causes of this increase and compares the return and risk characteristics of these unprofitable companies to their profitable peers.

With the strong relative performance of large cap stocks in recent years, as well as the academic basis often cited in support of small cap performance, it may surprise some allocators that mid cap stocks have been the best performing domestic equity market cap segment over the past 40+ years.  In this month’s Chart iQ, Landon Peterson observes this strong long-term performance and offers a few reasons why mid cap stocks make up an equity market sweet spot.

In this month’s “BondiQ”, we explore the relationship between credit spreads and two important economic variables in an effort to assess the implied fair value of credit spreads.

Fourth Quarter 2022 Intermediate Fixed Income Strategy Commentary