In early April, Boston Partners’ Josh Jones, a portfolio manager on Boston Partners Global Equity and International Equity strategies, published a bylined article in Investment Week. The op-ed explored the opportunity for liquid alts investors to find compelling short positions within the growing pool of concept stocks at the tail end of an extended cycle.
The article, “Concept Stocks: An Opportunity for Short Sellers,” highlighted how long/short investors focused on value have been positioning to capitalize as the markets more broadly begin to scrutinize stocks whose valuations have been driven by “stories” versus fundamentals or performance.
“Just because a company disrupted its industry does not mean that past growth trends can automatically be extrapolated ad infinitum,” Jones wrote. “Industry dynamics change, moats fill, and the markets, over time, simply expect that top-line growth will translate into bottom-line performance as economies of scale and pricing power support margin growth.”
The full article can be found online here.
Josh Jones is a portfolio manager on Boston Partners Global Equity and International Equity products. Prior to this role, he was a research analyst specializing in the energy, metals and mining sectors of the equity market and was a global generalist. He joined the firm from Cambridge Associates where he was a consulting associate specializing in hedge fund clients.
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The views expressed by Boston Partners’ employees reflect those of the author as of the date of the article. Any such views are subject to change at any time based on market and other conditions and Boston Partners disclaims any responsibility to update such views. Options investing entail a high degree of risk and may not be appropriate for all investors, and there is no guarantee that investment strategies will work under all market conditions. The information provided does not constitute investment advice and it should not be relied on as such.
