Randall is CEO and Portfolio Manager of Generation PMCA Corp., a firm he co-founded in 1999 shortly after founding its affiliate broker dealer, Generation IACP Inc., for which he is also CEO and a portfolio manager.
Randall graduated with a bachelor’s degree in commerce from the University of Toronto in 1989, and his career has spanned investment banking, investment analysis and portfolio management.
Randall was named one of Canada’s ‘Stock Market Superstars’ in Bob Thompson’s Stock Market Superstars: Secrets of Canada’s Top Stock Pickers (Insomniac Press, 2008). Randall’s perspectives have appeared in leading media outlets such as the Financial Post, BNN Bloomberg, The Globe and Mail, Motley Fool, and ValueWalk. He has made numerous presentations at leading industry conferences such as the Value Investing Congress and MOI Global.
LATEST FROM RANDALL ABRAMSON, CFA
Most don’t practice value investing—instead relying on buy and hold, momentum, or index strategies, all much easier on the psyche in the short term. To us, it’s simple common sense to embrace mean-reversion strategies—those offering better upside potential, especially during a period when most securities have downside risk since they are already at or above FMVs.
The rise in interest rates has been felt across the U.S. economy. Commercial and Industrial loan growth is declining, for the first time since 2020. And it began declining before the recent U.S. bank failures, which were 3 of the 4 largest of its kind. We will continue to hone our short game—hedging portfolios—while playing the long game—owning high-quality companies we expect to grow their earnings and underlying valuations.
Globally, growth is waning, though at a tepid pace because of the prior avalanche of government stimulus, rebuilding of supplies, and extremely low unemployment. Will central bank restraint lead to a mere petering out of growth, if inflation is quickly perceived to have been ameliorated, or is recession inevitable from one of the fastest tightening responses on record?
And up and down. Like a toilet seat, yo-yo, a game of Snakes & Ladders, not straight up and down like an elevator, but more like the ups and downs of a rollercoaster—that’s how the financial markets have felt lately. Unusually volatile, reacting to headlines related to inflation, rising interest rates, declining corporate earnings, layoffs, Ukraine, and covid-shutdowns in China. Emotions have been pushing markets up and down, while underlying fundamentals worsen.