... if you're going to take duration risk, take duration risk in your equity sleeve, not in your fixed-income sleeve. Duration risk in equities is really cheap, given how attractive utilities are priced today relative to investment-grade or Treasuries

But you can't outperform by 400 basis points a year or 300 basis points per year if you have 100 stocks. It's very, very hard to do that. You really need to be a little more concentrated.

I think what drives in many respects the multiple companies is a little bit supply and demand. So, the reason why this 13% of the S&P 500 that I call GARP, trades where it does, and it should trade higher, is that a value manager will often look and say, Well, these companies, they trade for 10% or 20% premium to the market, that’s too expensive, so I can't invest in those stocks. Growth manager says, you know what, these companies, they're only growing organically like 4% or 5% organically. I want to own companies that are growing 10% organically.
So, in many cases, there's no natural buyer for these companies. So, that depresses their valuation to a level where, again, if you think about the market, the market, typically, in non-recession years, grows earnings at 6% to 7% kind of clip, gives you a 2% dividend yield. So, for a small premium to that, which you'd able to generate, is find the companies that are growing earnings at 10% plus, maybe a little bit more dividend yield, and have much less downside risk, because there's an inefficiency. The two big market participants kind of shunned these companies a little bit. So, what happens is, over time, they just compound wealth, and in many cases, the market becomes a little bit smarter over time and says, Oh, it used to trade for 18 times earnings, but it's actually a really good company, and you should trade for 20 or 21 times or 22 times. So, you get the compounding of the earnings and the dividend and usually, like the multiple expands.

First Pacific Advisors, LP (“FPA”), investment adviser to the FPA Queens Road Small Cap Value Fund (QRSIX/QRSAX/QRSVX) (“the Fund”), is pleased to announce that FPA Capital has completed its reorganization into the Fund, with more than 85% of the FPA Capital shares cast in support of the reorganization.

For further details, please click here.

@rforno. Thanks much for sharing this. .i wish I could buy his fund. Any key takeaways you can summarize?

New York-based hedge fund Senvest Management started investing in GameStop before it caught fire with much of the r/WallStreetBets crowd, and by October 2020, it owned more than 5% of the company.....after GameStop stock peaked at more than $400, the hedge fund walked away with a $700 million profit...."Given what was going on, it was hard to imagine it getting crazier," Senvest CEO and fund manager Robert Mashaal told The Journal.

"Highland Capital Management LP, once a giant in high-yield debt markets, filed for bankruptcy protection Wednesday as investors and former employees seek more than $200 million from the firm for alleged improprieties."
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If anybody has more up to date information on the fund advisor's bankruptcy status, I would appreciate hearing from you.

Highland [Capital Management LP] is one of several investment platforms under the same ownership, including Highland Capital Management Fund Advisors LP and NexPoint Advisors LP, which didn’t file for bankruptcy.