During 2023, technology, driven by the emergence of the Open AI-developed chatbot ChatGPT, has caused significant gains in stock prices. After an abysmal 2022, with interest rate, inflation, and supply chain issues looming large, investors moved en masse into positions benefitting from AI’s emergence as a defining paradigm.
The companies that benefitted the most from the AI-driven equity market boom became “the Magnificent Seven,” in homage to a classic Hollywood Western. With no genuinely new names, the group consists of Apple, Microsoft, Tesla, Nvidia, Meta, Alphabet, and Amazon. Together, the companies posted an average of 90 percent gains in the first half of 2023, while the NASDAQ’s overall index growth of 32 percent represented its finest first-half performance in four decades. Silicon Valley’s Nvidia stood head and shoulders above its cohorts, attaining 190 percent gains on the strength of advanced semiconductor chips capable of training generative AI platforms. Many other companies on the list represent significant customers of the firm’s graphics processing unit (GPU) products. Microsoft also presents a high-flying AI-propelled proposition, as it moved from simply partnering with Open AI to taking a significant $13 billion (49 percent) minority stake in the company. With Apple testing generative AI for Siri, Meta seeking to embed AI in Facebook feeds, and other companies making similar moves, many in the industry also see growth on the medium-term horizon.
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A limited partnership of private investors, hedge funds are managed by investment professionals to maximize returns. Depending on the specific strategies and goals adopted by these hedge fund managers, a hedge fund might fall into one or more general categories.
When the typical investor thinks about a hedge fund, a global macro hedge fund is generally what springs to mind. These hedge funds take positions based on predicted outcomes of extremely significant (or “global macro”) events such as economic collapses or political upheavals. Another common type of hedge fund includes the relative value hedge fund, which takes advantage of the pricing anomalies among similar securities that often arise during major structural and ownership changes such as mergers and acquisitions. Beyond investment strategy, hedge funds can set themselves apart in terms of objectives and focus. For example, an activist hedge fund invests in specific companies and takes other strategic actions to engender changes that range from asset restructuring to management overhauls. Third-party vendor management identifies, assesses, and monitors how secure third suppliers are in mitigating an organization’s risk exposure. It also fosters better collaboration with suppliers by streamlining processes. Third-party vendor management can help companies save money, increase return on investment, and take products to the end user or market faster.
Without proper vendor management, many things can go wrong. For example, vendor costs can grow quickly or uncontrollably when an organization gets locked into long-term vendor contracts, which might have outlived their usefulness. Also, a vendor may fail to deliver on their promise. A comprehensive vendor management plan should capture all the rules, behaviors, and access that an organization agrees upon with its third-party suppliers. The risk management plan should also cover product or service testing details to ensure that the third-party vendor can deliver. In addition, to manage vendor risk, the management plan should have a checklist that covers all the steps each third-party vendor must follow when supplying a product or service. An alumnus of Bowdoin College, Stewart Strawbridge is a distinguished investment management executive who serves as managing member of Selkirk Partners, a global long/short equity investment firm. Stewart Strawbridge is experienced in the use of long/short equity investment approaches, of which pairs trading is one form.
In the digital age, financial analysts use artificial intelligence to fast-track and optimize various types of trades. Some of these AI tools analyze historical relationships between financial instruments, such as stocks, to make data-driven investments. One of the primary advantages of AI trading is the increased speed and efficiency it brings. With the ability to process vast amounts of data rapidly, AI systems can execute trades with precision and speed, capitalizing on fleeting opportunities that might go unnoticed by human traders. AI's capacity to identify subtle market signals and patterns is a significant benefit. Algorithms can make highly accurate predictions, increasing the potential for profitable trades. Additionally, AI trading eliminates emotional biases, resulting in more objective decision-making. According to the website angelone.in, AI-driven decision-making bolsters the chances of making the right trading and investment decisions. When combined with human efforts, AI is poised to help both analysts and investors excel in the finance markets. Professional investment manager Stewart Strawbridge founded Selkirk Management, LLC, with two other experienced investors in 2008 and has been managing member since then. Stewart Strawbridge’s main goal with his Selkirk partners was to build a management team that helps clients achieve a long-term portfolio that minimizes taxes and maximizes returns.
High-income earners must fully comprehend the tax laws and regulations that apply to them, because the more taxable income they earn, the greater their federal income tax burden. Fortunately, there are various tax-cutting techniques such earners can adopt to construct portfolios that minimize their tax burdens and maximize returns. Using tax-deferred accounts such as 401(k)s and IRAs can be an excellent way for earners to shelter their investments from taxation. Tax-deferred accounts have no taxes owed on their transactions. The account owner only pays taxes when they withdraw money during retirement, meaning they can save more in taxes to reinvest and build their portfolio. High-income earners can also use tax-loss harvesting strategies to offset capital gains taxes. Tax-loss harvesting entails selling securities or mutual funds at a loss to offset a realized gain elsewhere in the portfolio. For instance, if an investor sells a stock for a profit, they can use the loss from another stock to offset the profit from the first stock. Selling investments that have lost value can offset gains from other investments, ultimately reducing the overall tax bill. Another way to create a tax-efficient portfolio is to hold investments for the long term to take advantage of lower capital gains tax rates. By adopting a buy-and-hold strategy, investors are eligible for the long-term capital gains rate, which is typically lower than the ordinary income tax rate. Knowledgeable in Latin, Stewart Strawbridge majored in classics at Bowdoin College. Stewart Strawbridge enjoyed ice hockey and lacrosse during his time at the university.
The head and shaft are essential parts of a lacrosse stick, and the player should ensure these parts are of quality material. Lacrosse players use the head to carry and throw the ball during play, and it can come in nylon, resin, and wooden form. Beginner sticks generally have wider heads, which help players scoop the ball easily. Players hold the shaft to maneuver the ball. The shaft may come in different materials, including titanium, aluminum, and scandium. Titanium shafts are the toughest and serve well for heavy set players, while aluminum shafts are light and suitable for small players. Scandium is a shaft material that has both elements of titanium and aluminum. The player should consider stamina and size when choosing a stick. It is necessary to buy a stick that pairs well with the player's height. The player's position also influences stick purchase. For instance, experts recommend that attack and midfield players should use sticks no longer than 42 inches. Since 2008, Stewart Strawbridge has served as managing member of Selkirk Partners, a long-short equity investment partnership. Prior to starting his career, Stewart Strawbridge studied classics at Bowdoin College, which recently received mention from the Georgetown University Center on Education and the Workforce (CEW) for its high financial return on investment.
In an effort to measure the return on investment of studying at a private college versus a public college, the Georgetown CEW recently conducted a study titled “A First Try at ROI: Ranking 4,500 Colleges.” The report listed Bowdoin among the five best colleges in the New England Small College Athletic Conference (NESCAC) and other similar liberal arts colleges in terms of the highest return on investment 10 years after enrollment. For the same measure at 15, 20, 30, and 40 years after enrollment, Bowdoin ranked among the top two or three schools. Overall, the report showed that, 40 years after enrollment, graduates of private colleges reported a net economic gain of $838,000, compared to $765,000 for graduates of public colleges. As the founder of Selkirk Partners, Stewart Strawbridge guides a globally networked equity investment firm. Stewart Strawbridge and his wife, Dr. Elizabeth Strawbridge, recently launched Good Medicine Collective, a nonprofit organization in Portland, Maine, that focuses on holistic and affordable approaches to wellness.
One of the core offerings of Good Medicine Collective is the six-week series Qi Gong for Health, which presents a fitness technique that was developed by Buddhist and Taoist monks in ancient China. Qi gong focuses on cultivating the life-force that underlies vitality and enables self-healing. Centered on deep breathing and meditative motion, qi gong is usually performed in a standing position. The exercise incorporates a series of stylized and rhythmic movements that include gentle twists of the torso and the lowering and raising of the arms. These movements are held from a few seconds to several minutes, with the slow burn accompanied by a focus on breath and a visualization of the body’s energy flow along the meridians. A foundational practice, qi gong is often incorporated with complex disciplines such as tai chi. A founding partner of the investment advisory firm Selkirk Management, Stewart Strawbridge possesses more than two decades of experience in equity strategies. Beyond his work in asset management, Stewart Strawbridge is an active philanthropist and a proponent of integrative health care and wellness. He and his wife opened the holistic health initiative Good Medicine Collective, which hosts meditation and yoga classes in Portland, Maine.
Through the combination of physical movement and philosophical beliefs, yoga adherents can develop character traits often associated with resilience, including self-awareness, emotional stability, and self-discipline. Many yoga poses are designed to promote feelings of empowerment and confidence. In yoga, the mentally destabilizing nature of not remaining in the present moment can be felt physically. For example, to achieve balance in the Warrior II pose, a yogi must keep his or her head and shoulders centered. Metaphorically, leaning back or forward represents thinking too much about the past or the future. With practice, this movement can train practitioners to remain mentally centered and present in their everyday lives. Stewart Strawbridge is an experienced wealth management professional who has served as managing member of Selkirk Partners since co-founding the firm in 2008. Under Stewart Strawbridge’s direction, Selkirk focuses on a global long-short equity investment strategy.
In brief, the term “long-short” applies to any equity strategy that involves taking long investment positions in undervalued stocks that should appreciate in worth, while concurrently taking short investment positions in overvalued stocks that should decrease in worth. Long-short equity strategies are particularly popular among hedge funds, which often take a market-neutral approach that distributes capital equally between the long and short categories. Other hedge funds take a more conservative long-short investment approach with a relatively long bias. A good example of this is the 130/30 strategy, which divides assets under management into 130 percent long positions and 30 percent short positions. Like other investment strategies, the long-short approach offers potential diversification through the business sector, market geography, and specific value and growth goals. |
AuthorStewart Strawbridge rode The Bruce to victory in the 111th running of the Maryland Hunt Cup in 2007 Archives
December 2019
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