Prospector Partners, LLC

From math teacher to portfolio manager. That’s Steven Labbe’s story. Before landing a job at an investment boutique early in his career, he was on track to be a math teacher. ?????? Turns out, that skill set translates well to investing. His approach is built on: Pattern recognition—spotting inefficiencies others overlook Data-driven decisions—removing emotion from investing A long-term mindset—focusing on durability over short-term gains In this conversation, Steve shares: What baseball analytics taught him about stock picking How an unconventional background can be an asset in investing The key principles he follows in today’s market His path to investing wasn’t traditional, but it shaped how he thinks about the markets. To watch the full interview with Steve, click on the ?? in comments.???? --- ?? Our approach and philosophy is inspired by legendary value investors ?? 25+ year track record focused on downside risk mitigation #valueinvesting #equities #assetmanagement

Are rate cuts a moving target? It certainly feels that way. The recent election has thrown a wrench into expectations. With potentially deficit-ballooning fiscal stimulus likely on the way, on top of questions surrounding the impact of tariffs and deportations, Fed policy makers face a tough choice: Continue cutting and risk reigniting inflation or... Hold steady and risk tightening financial conditions too much Market expectations have already shifted, and fewer cuts are now anticipated in 2025. With inflation still hovering above the Fed’s 2% target, Chairman Powell finds himself between a rock and a hard place. How will this all shake out in 2025? Discover how this factors into our outlook in our 4Q Commentary. https://lnkd.in/ggT9icTQ ------------------- #valueinvesting #interestrates #federalreserve ?? Our approach and philosophy is inspired by legendary value investors ?? 25+ year track record focused on downside risk mitigation

?? Spend more, borrow more... ...a trend that’s saddled the U.S. government with $35 trillion in debt. And a federal budget deficit of $1.8 trillion. Campaign promises of tax cuts and credits – if they’re carried out – will only add to this mountain of debt. Short-term gain for long-term pain? It certainly looks that way. The budget deficit is projected to widen $3.5 to $7.5 trillion over the next decade, reports The Wall Street Journal. Yet, the markets remain unfazed: the term premium on the 10-year Treasury remains well below long-term averages. So when will mounting debt finally become a red flag for investors? And what will it mean for the future of long-term interest rates? Read our 3Q commentary to get our take (link in comments). -- Chart: The Wall Street Journal

Bank M&A activity: Is the dam about to break? ? Deal making in the industry has been muted as… ? >?Tighter industry regulation? >?High interest rates >?Low valuations ? …kept would-be buyers and sellers on the sidelines.? ? But after a 2-year damper on deal activity, we’re seeing signs of pent-up demand.? ? Will more deals get done in the year ahead? Discover what we’re hearing and seeing from our contacts in the industry in our 2Q Commentary. https://lnkd.in/gByHeJXF #assetmanagement #valueinvesting #equities #banks

Commodities prices have been on a tear in recent months, spurred by rising geopolitical tensions and increasing estimates for global growth. Year to date, copper, silver, WTI crude oil, and aluminum are up 19%, 27%, 8%, and 14% respectively, while cocoa is up an astounding 122%.* Commodities represent ~36% of the Consumer Price Index (CPI).** They’re essential inputs in the goods that sustain our lives – from gasoline to groceries. Rising prices could hit you where it hurts most – your wallet. U.S. consumer spending has been incredibly resilient in the face of persistent inflation and rising interest rates. If commodities prices, interest rates, and inflation remain high and as COVID-era stimulus fades, that may change. Will inflated commodities prices find their way into the price of other goods, reversing recent progress on the battle against inflation? We’ll be watching. Chart source data: FactSet * As of 5/31/24 ** U.S. Bureau of Labor Statistics, “Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, special aggregate indexes.

??? “Past performance is no guarantee of future results.”??? But as investors set expectations for 2024, we urge them to remain mindful of an important factor: It's an election year. And the results could have implications on ?? companies ?? sectors ?? the overall economy How? Time will tell, but conditions bear monitoring. #valueinvesting #equities #markets #election #2024election

Glum U.S. employment scene? Not exactly. Consider: ??39% of small businesses have at least one job opening ??The unemployment rate is 3.9% Plus, multi-year federal funding is just starting to spark new spending in: ?? Defense ?? Infrastructure ?? Semiconductors ?? Energy For these reasons—and others—we think a recession in the near term is unlikely. Chart source: The Conference Board #valueinvesting #equities #activeinvesting