®
INSIDE THE BUY-SIDE®
SECOND QUARTER| ISSUE DATE: APRIL 13, 2012
Following a strong performance in 4Q11, the DJIA and S&P 500 indices posted record first quarter point gains to kick-start 2012. Indeed, the S&P 500 closed out the quarter at a higher level than many predicted it would close out the year. Meanwhile, the NASDAQ surged 19%, narrowly missing its biggest point increase since 2000. With second quarter earnings season kicking off this week, investors report they are more confident about the US economy amid strengthening consumer and industrial markets, a more stable banking system and signs of life in resi markets. Corporate balance sheets are also in excellent shape. As reported in the WSJ 1, “Big US companies have emerged from the deepest recession since World War II more productive, more profitable, flush with cash and less burdened by debt”.
By Sector
17%
10%
17%
10%
30%
3%
7% 3% 3%
By Investment Style
27%
10% 10% 7%
Europe’s sovereign debt issue remains a focal point, though investors are less concerned this quarter about a meltdown and the subsequent spillover effect. Meanwhile, China’s slowing growth continues to weigh on sentiment though investors are quick to point out, “I would take 8% growth any day of the week”. In our ongoing effort to stay at the forefront of current investor sentiment, Corbin Perception recently conducted interviews with 30 global financial professionals 2 across multiple industry segments and investment styles. Participating institutions aggregately manage upwards of $535 billion in equity assets.
1 2
Generalist Consumer Multi Financials Industrials Technology Healthcare REIT Energy
33%
3%
7% 3%
Core Value Core Growth Growth Hedge Fund Deep Value GARP Sector Specific Yield
By Region
6%
27% 67%
US Canada Europe
April 8, 2012 US, Europe and Canada
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