Brentview News & Insights

Q2 2021 Portfolio Commentary

Stocks continued their record run in the second quarter of 2021. The S&P 500 1st half return of 15.3% in 2021 turned in the third best six month return stream. As seen in Exhibit 1, 1st half 2019 was the strongest period with an 18.5% return, followed by 1st half 1998 with 17.7%. All said, the S&P 500 completed its fifth straight quarter of gains, a feat not seen since the 1953-1954 period. Non payers ended the quarter on a very strong note, especially during the last month.
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Q1 2021 Portfolio Commentary

Investors had a lot of cheer about as equity markets reached all-time highs and the covid-19 vaccine began to reach the US population during the first quarter of 2021. Driven by a favorable backdrop, the Brentview Dividend Growth strategy outperformed the S&P 500, our primary index in the first quarter. On a gross basis the Dividend Growth strategy returned 6.54% vs. the S&P 500 return of 6.17%.
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Q4 2020 Portfolio Commentary

Heading into 2020 it was not uncommon to see metaphors for the forthcoming year as “the year of perfect vision.” However, as the year progressed it became apparent that visibility was anything but clear. For the fourth quarter Dividend Growth slightly underperformed the S&P 500, despite our strategy maintaining a lower beta position. On a gross of fee basis Dividend Growth was up 11.41% for the period versus 12.13% for the S&P 500. For the full year, Brentview returned 12.91% versus 18.39% for the S&P 500.
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Q3 2020 Portfolio Commentary

The third quarter of 2020 was a strong quarter with the S&P 500 up 8.5%. While the quarter began with a bang, it seemed to end with a whimper as the month of September sold off by 3.9%. Despite the September weakness, the Nasdaq Composite was still able to post an 11% appreciation for the third quarter.
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Q2 2020 Portfolio Commentary

In the second quarter, our strategy underperformed the S&P 500, our primary index, returning 15.87% vs. 20.54% for the index. Year to date, through June 30th, our strategy underperformed the index by 219 basis points, returning -5.27% vs. -3.08% for the index. Ultimately the second quarter was the best performing quarter for the S&P 500 index since 1998 and the best performing second quarter ever since the S&P 500 index was created in 1957.
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Q1 2020 Portfolio Commentary

Despite the backdrop of record volatility, the Brentview Dividend Growth strategy outperformed the S&P 500, our primary index in the first quarter of 2020. On a gross basis our Dividend Growth strategy returned -18.25% vs. the S&P 500 total return of -19.60%. The year started out with typical seasonal strength as the month of January has historically been positive.  Ultimately the otherwise complacent stock market was shaken as volatility surged as the quarter progressed. During the month of March, data shared from global health organizations underscored the quick spread of the COVID-19 virus.  This news understandably caused concern among investors and equity markets responded with the highest measured volatility for the S&P 500 since 1928 as seen in (Chart1).  We are grateful that our portfolio is constructed and designed with risk management in mind. During the month of March alone the Dividend Growth strategy had a gross return of -10.88% vs. -12.35% for the S&P 500. Ultimately our investment philosophy of “bend but don’t break” has designed a portfolio that drove our quarterly outperformance during the most stressed month in history.
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Q4 2019 Portfolio Commentary

In the fourth quarter, our strategy underperformed the S&P 500, our primary index, returning 7.6% vs. 9.1% for the index. For 2019, our strategy outperformed the index by 260 basis points, returning 34.1% vs. 31.5% for the index. Ultimately 2019 was the best performing year for the S&P 500 index since 2013. Progress towards a China and USA “skinny” trade deal encouraged investors to take on more risk and that became more evident as the quarter progressed. The Federal Reserve earlier in the quarter lowered the Federal Funds rate target to 1.50%-1.75% as the trade wars fears began to impact the economy. As time passed, yield curve inversion fears seemed to fade into the rear-view mirror and even cracks in the overnight Repo markets went unnoticed.
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Q3 2019 Portfolio Commentary

In the third quarter, our strategy outperformed the S&P500, our primary index, on a gross and preliminary basis by 330 basis points, returning 5% vs. 1.7% for the index. Year to date, again on a gross and preliminary basis our strategy is outperforming the index by 400 basis points, returning 24.6% vs.  20.6% for the index. With the recent shifts in valuation Brentview’s dividend growth portfolio positioned itself to take advantage of the current market environment. We trimmed select positions within communications services and real estate that had recently outperformed.  In addition, we increased our health care weighting by adding a new position that has an attractive dividend yield but also exposure to the pharmaceutical and biotech industries.
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This commentary reflects the views of the Brentview Investment Management and is subject to change as market and other conditions warrant. No forecasts are guaranteed. This commentary is provided for informational purposes only and is not an endorsement of any security, sector, or index. The commentary should not be seen as a solicitation or offer to buy or sell any securities. The advisor (Brentview Investment Management, LLC), and their employees and clients, may hold or trade the securities mentioned in this commentary. Diversification does not guarantee a profit or eliminate the risk of a loss.