| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Matrix Asset Advisors' Large Cap Value and Dividend Income strategies delivered strong absolute returns in Q2 2026, with the market rallying 15.2% as investors focused on strong corporate earnings and expectations for an end to the Iran war. The manager remains optimistic about the economy but cautiously optimistic about the overall stock market given valuations at the high end of historical ranges with the S&P 500 trading at more than 20 times earnings. During the quarter, the manager opportunistically added to positions in Consumer Staples, Healthcare, and select Technology names that have been left behind, while trimming or selling positions in Financials and Technology that reached target prices or became overweighted. The portfolios are positioned to benefit from anticipated market broadening, owning many companies that remain inexpensive and are poised to lead. Key risks include potential labor market softening from healthcare spending cuts and AI-driven job losses, elevated market valuations with pockets of speculation, and the low dividend yield on the S&P 500 versus competitive Treasury yields. The manager expects higher-than-usual volatility and leadership rotations in the second half of 2026.
Matrix Asset Advisors is positioned to benefit from market broadening beyond concentrated leadership, owning attractively valued companies in sectors that have lagged the rally but are poised to lead in upcoming periods.
The manager remains optimistic about the economy and cautiously optimistic about the stock market for the balance of 2026. Strong corporate earnings, the desire by the United States and Iran to end their war, and AI infrastructure spending are positive factors. However, modest expectations exist for the overall stock market given elevated valuations at more than 20 times estimated earnings. The manager has a more positive view for their portfolios, anticipating continued market broadening beyond a few favorite sectors will benefit performance, as they own many companies that have lagged, remain inexpensive, and are poised to lead in upcoming periods. Higher-than-usual volatility and many leadership rotations are expected in the second half of the year.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 28 2026 | 2026 Q2 | ABT, AMAT, BK, FDX, GNRC, GOOGL, GS, INTU, LOW, MCD, MDT, META, MS, NKE, PEP, QCOM, TEL, TMO, TSN | AI, dividends, financials, healthcare, inflation, large cap, technology, value |
ABT MCD |
Matrix delivered strong Q2 returns as markets rallied 15.2%, but remains cautiously optimistic given elevated valuations at 20x earnings. The manager actively rotated the portfolio, trimming overweighted Financials and Technology winners while adding to lagging Consumer Staples and Healthcare names. Portfolios are positioned to benefit from anticipated market broadening beyond concentrated leadership, owning attractively valued companies poised to lead in upcoming periods despite expected volatility. |
| May 13 2026 | 2026 Q1 | AAPL, ADP, AMZN, INTU, MSFT, NKE, PEP, PG, QCOM | AI, dividends, financials, geopolitics, oil, technology, value |
INTU NKE ADP PG |
Matrix remains cautiously optimistic despite Q1 decline, viewing Iran conflict as temporary headwind creating buying opportunities. Firm added quality names like Intuit and Nike at attractive valuations during selloff. Expects Value outperformance after decade of Growth dominance, with dividend stocks providing stability in volatile environment. Portfolio positioned for recovery with 17.1x forward PE versus market's 20.2x. |
| Jan 30 2026 | 2025 Q4 | ACN, FI, GNRC, LMT, META, TXN | AI, dividends, Fed, financials, rates, technology, value | - | Matrix delivered strong 2025 returns and expects Value stocks to outperform Growth in 2026 after a decade of underperformance. Fed rate cuts should drive demand for dividend income while high market valuations create rotation opportunities. Key risks include weakening employment and unbalanced economic growth dependent on AI investment and high-income spending. |
| Nov 16 2025 | 2025 Q3 | ACN, AMAT, BA, BK, CSCO, FI, GD, LHX, LMT, NESN.SW, NSC, SBUX, STZ, TEL, TGT, TSN, UNP | AI, defense, dividends, financials, large cap, rates, technology, value | - | Matrix delivered solid Q3 returns with lower volatility than markets while maintaining cautious outlook on elevated valuations and slowing growth. Firm actively rebalanced portfolios, adding defensive positions and trimming outperformers. Expects continued volatility with sector rotation from growth to defensive stocks as economic deceleration becomes evident. Emphasizes disciplined value approach and dividend focus. |
| Aug 7 2025 | 2025 Q2 | AEP, AMAT, BK, CMCSA, CSCO, DG, FDX, FI, GNRC, LOW, MS, PEP, PNC, PYPL, QCOM, SBUX, TEL, TGT, TMO, UNH | dividends, financials, large cap, tariffs, technology, value, volatility |
AMAT AMAT FI UNH |
Matrix delivered strong Q2 performance amid tariff-driven volatility through disciplined value investing and opportunistic positioning. The firm deployed cash during market weakness while trimming overvalued holdings, maintaining attractive portfolio valuations versus benchmarks. Despite ongoing policy uncertainty and elevated market valuations, Matrix expects positive but volatile returns ahead, supported by solid economic fundamentals and potential Fed easing. |
| Apr 8 2025 | 2025 Q1 | ABBV, BDX, BK, CSCO, DG, FI, GNRC, GS, HUM, JPM, LOW, MDT, META, PEP, QCOM, RTX, TGT, TMO, TSN, USB | dividends, financials, healthcare, tariffs, technology, value, volatility |
GNRC PEP TGT |
Matrix capitalized on tariff-driven market volatility by building cash during Q1 rallies then deploying it during the March-April selloff. The LCV portfolio trades at attractive 15.2x earnings versus S&P 500's 18.8x multiple. Despite near-term policy uncertainty, the manager expects strong portfolio recovery as high-quality companies at discounted valuations benefit from eventual economic stabilization. |
| Jan 8 2025 | 2024 Q4 | AMGN, BDX, BK, CSCO, DG, GILD, HUM, MS, PEP, PNC, UNH | dividends, financials, growth, healthcare, inflation, rates, technology, value |
AMGN DG PEP |
Matrix delivered 20%+ returns in 2024 and expects Value to outperform Growth in 2025 after a decade of underperformance. They favor high-quality Financials, Healthcare, and Consumer Staples at attractive valuations. Cautiously optimistic on stocks given elevated valuations but see opportunities for market rotation and earnings acceleration driving historic average returns. |
| Sep 30 2024 | 2024 Q3 | ABBV, BDX, CMCSA, CSCO, DUK, GS, JPM, MDT, NESN.SW, PYPL, QCOM, SBUX, UNP | dividends, financials, healthcare, large cap, rates, value |
MDT BDX NESN.SW |
Matrix delivered strong Q3 results across value and dividend strategies, capitalizing on Fed rate cuts and market broadening. The firm added quality healthcare and consumer staples positions at attractive valuations while trimming overweight financials. With portfolios trading at significant discounts to market multiples and positioned for lower rate environment, Matrix expects continued outperformance despite near-term volatility from elections and geopolitical tensions. |
| Jul 31 2024 | 2024 Q2 | CMCSA, CSCO, CVS, GD, GILD, HD, LOW, MDT, PEP, QCOM, SBUX, TSN | AI, dividends, financials, healthcare, large cap, technology, value |
LOW MDT |
Matrix Asset Advisors sees compelling value opportunities as AI mega-cap concentration reaches extremes. Their Large Cap Value and Dividend strategies trade at significant discounts with strong fundamentals. New positions in Lowe's and Medtronic offer attractive risk-adjusted returns. Expected Fed rate cuts should benefit Financial holdings and drive market leadership broadening beyond technology. |
| Apr 15 2024 | 2024 Q1 | ABBV, AEP, AMGN, APD, DUK, EBAY, FDX, JPM, NEE, PARA, PYPL, QCOM, RTX, SBUX, TSN, TXN, UNH | AI, dividends, financials, large cap, rates, technology, Utilities, value |
AEP TSN |
Matrix delivered strong Q1 returns through value-focused stock selection, adding utilities and protein processor Tyson Foods while trimming winners. The firm expects choppier markets ahead but remains optimistic on Fed rate cuts driving further gains. Key positioning includes increased utility exposure for AI-driven electricity demand and dividend growers positioned for rotation away from growth leadership. |
| Dec 31 2023 | 2023 Q4 | AAPL, AMZN, GOOGL, GS, JPM, META, MS, MSFT, QCOM, TEL | financials, large cap, Quality, technology, value | - | Matrix's value strategy delivered exceptional 2023 performance by investing in quality Technology and Communication Services companies at discounted prices. Strong Q4 Financial sector performance driven by solid earnings and declining rates. Concentrated 31-stock portfolio reflects high conviction approach using proprietary valuation models. 2024 outlook expects continued Financial sector strength with gains from previously lagging Healthcare, Industrial, and Materials holdings. |
| Sep 30 2023 | 2023 Q3 | AAPL, AEP, AMGN, AMZN, BKNG, CMCSA, FDX, FI, GOOGL, JPM, LHX, META, MSFT, NEE, PFE, RTX, TXN, UL, UNH, ZBH | dividends, Fed policy, inflation, large cap, rates, value |
HRTX NEE |
Matrix sees attractive opportunities emerging from Q3's rate-driven selloff. Their value-focused portfolios trade at significant discounts to market multiples while generating superior dividend income. The firm expects Fed policy pivot in 2024 as economic data shows rate impact, creating favorable conditions for both undervalued equities and extended-duration fixed income positioning. |
| Aug 8 2023 | 2023 Q2 | AAPL, AMZN, CSCO, GD, GOOGL, KO, LHX, META, MSFT, PFE, PYPL, QCOM, SBUX, UNH | dividends, Fed policy, financials, healthcare, insider buying, Market Rotation, technology, value |
AAPL|MSFT|NFLX|NVDA|UNH PFE |
Matrix Asset Advisors expects the AI-driven technology rally to broaden, with undervalued Financials, Healthcare, and Industrials leading gains in the second half of 2023. Record insider buying activity and attractive portfolio valuations support their bullish outlook. The firm maintains overweight equity positioning while the Fed nears the end of its hiking cycle. |
| Aug 5 2023 | 2023 Q1 | AEP, AMZN, APD, BK, EBAY, HD, KMB, KO, MDT, MTB, PARA, PNC, SLB, TFC, TSN, UNP, USB | Banking, dividends, financials, healthcare, rates, technology, value |
PNC SUNP IN |
Matrix Asset Advisors remains bullish on 2023 despite Q1 banking stress, citing attractive valuations with 44% estimated portfolio upside and expected Fed pause. Manager sees oversold regional banks as particularly attractive and expects market rally to broaden beyond mega-cap tech. Positioned overweight equities with focus on dividend growth and quality companies. |
| Mar 22 2023 | 2022 Q4 | AMZN, MS, SLB, TSN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI-related semiconductor companies led Technology sector performance in Q2. The spending binge on AI infrastructure is cited as a positive factor for the economy. However, widespread AI implementation across corporate America risks further job losses, representing a potential cloud on the outlook. |
Semiconductors Technology Infrastructure Employment |
ValuationsOverall market valuations sit at the high end of historical ranges with the S&P 500 trading at more than 20 times estimated earnings. Significant pockets of speculation and extended stock prices leave little margin for error. The manager has modest expectations for the overall stock market given these elevated levels. |
P/E Multiples Market Risk Speculation | |
EnergyEnergy was the worst-performing sector in Q2. The war with Iran initially caused oil prices to spike above $110 per barrel in April, but prices fell sharply to $70 by quarter-end. The recent pullback in oil and gas prices should provide a helpful boost to the economy by giving consumers more money to spend on things other than energy. |
Oil Iran Consumer Spending | |
RatesMarket expectations shifted from anticipation of one or two Fed rate cuts in 2026 to forecasts of a possible rate hike, driven by the Iran war, sticky inflation, and hawkish comments from new Fed Chairman Kevin Warsh. The manager remains wary of longer-term bonds and very comfortable owning shorter maturities of 5 years or less. |
Federal Reserve Inflation Fixed Income | |
DividendsNine portfolio companies raised their dividends by an average of 8.1% in Q2. In the first six months of 2026, fourteen portfolio companies raised dividends by an average of 6.8%. The Dividend Income portfolio had a 2.69% dividend yield versus 1.08% for the S&P 500, with strong fundamentals supporting continued income growth. |
Income Yield Dividend Growth | |
HealthcareHealthcare was among the largest detractors from performance in Q2 for both strategies. Government healthcare spending cuts could slow job growth in healthcare, the economy's most resilient sector for several years. The manager added to healthcare positions including Abbott Laboratories, Medtronic, and Thermo Fisher Scientific during the quarter. |
Government Spending Employment Medical Devices | |
FinancialsFinancials was one of the sectors that added the most to portfolio returns in Q2. The manager trimmed positions in Bank of New York Mellon, Morgan Stanley, and Goldman Sachs after all three reached new highs and became overweighted in the portfolio. Financials remains one of the largest sector weightings. |
Banks Investment Banks Portfolio Management | |
Consumer StaplesConsumer Staples was the worst-performing sector in Q2 and among the largest detractors from portfolio performance. The manager added to positions in PepsiCo, Tyson Foods, and Procter & Gamble during the quarter, viewing the sector pullback as an opportunity to build positions at attractive valuations. |
Food Beverages Household Products | |
| 2026 Q1 |
AIAI poses threats to software business models and white-collar jobs, creating market volatility and sector rotation. The manager notes AI disruption fears led to software selloffs but believes companies like Microsoft and Intuit will adapt. AI adoption speed will determine labor market impact. |
Software Disruption Jobs Technology |
OilOil prices nearly doubled from $55 to $101 due to Iran conflict, driving energy sector outperformance and inflation concerns. Higher energy costs create uncertainty for corporate guidance and economic outlook. |
Energy Inflation Geopolitics Iran | |
GeopoliticsUS-Israel bombing of Iran created market volatility and uncertainty. Manager expects conflict resolution soon and believes markets historically recover quickly from military conflicts, viewing current decline as opportunity. |
Iran Conflict Uncertainty Recovery | |
ValueAfter over a decade of Growth outperformance, manager expects Value to enter period of favorable relative and absolute returns. Current market decline has brought quality companies back to attractive valuations. |
Growth Outperformance Valuations Rotation | |
DividendsDividend stocks positioned to perform well in volatile environment as investors seek stability from growing income. Portfolio companies raised dividends by average 4.2% in quarter, demonstrating fundamental strength. |
Income Stability Volatility Growth | |
| 2025 Q4 |
Defense SpendingManager maintains exposure to global armaments companies, noting the entire world is rapidly rearming off an extremely low base of defense spending. The position materially outperformed for the year despite Q4 underperformance, with top contributors including Rheinmetall, Palantir Technologies, and RTX. |
Defense Armaments Military Geopolitical Security |
GoldManager holds both physical gold bullion and a leveraged gold exposure called 'Gresham's Wrath' that provides 1.5x gold exposure plus option income. Gold demand from global central banks is accelerating while US Treasuries are being reduced, with physical deliveries highlighting growing mistrust of fiat currencies. |
Gold Precious Metals Monetary Inflation Currency | |
Precious Metal Royalty/Streaming CompaniesManager maintains exposure to companies that provide upfront capital to mining companies in exchange for royalties or streams, avoiding operational mining risks while benefiting from price appreciation and production growth. These exposures materially outperformed for the year. |
Royalties Streaming Mining Commodities Cash Flow | |
Capital MarketsManager holds positions in exchanges that operate as essential high-margin toll roads for the economy, with immense operating leverage and revenue naturally hedged against inflation. These exposures materially outperformed for the year, including Nasdaq and Chicago Board of Options Exchange. |
Exchanges Trading Financial Infrastructure Technology Data | |
JapanManager exited unhedged Japan exposure due to currency headwinds from weakening Yen but added new dynamically hedged Japan exposure that filters for companies treating shareholders well and adjusts currency hedge based on four separate models. |
Japan Currency Hedging Shareholder Yield Corporate Governance | |
BitcoinDespite long-term bullish views, manager completely exited Bitcoin position in mid-November using risk management framework similar to commodity trading funds. Position kept falling after exit while US Large Cap equities they rotated into continued increasing in value. |
Bitcoin Cryptocurrency Risk Management Volatility | |
| 2025 Q3 |
AITechnology and Communications sectors led the market rally, accounting for 70% of S&P 500 performance in Q3, driven by investor enthusiasm for artificial intelligence including the Magnificent 7. Companies are expected to continue incorporating AI to run businesses more efficiently and drive earnings growth. |
Technology Communications Magnificent 7 Efficiency Earnings |
DividendsMatrix's Dividend Income strategy focuses on high dividend paying stocks, with portfolio yielding 2.85% versus 1.17% for S&P 500. All 26 portfolio companies raised dividends in past year by average 6.2%, with four companies increasing dividends by 8.8% in Q3. Expected decline in short-term rates should draw attention to high quality dividend stocks. |
Dividend Income Yield Dividend Growth Income Quality | |
RatesFederal Reserve cut rates by 0.25% in September as expected, with lower rates serving as economic tailwind and providing support for stock prices. Matrix remains cautious on long-term bonds due to potential inflationary pressure and rising rates from government borrowing needs, keeping maturities inside five years. |
Federal Reserve Rate Cuts Monetary Policy Bond Duration Inflation | |
DefenseMatrix added Lockheed Martin to Dividend Income portfolio, the largest U.S. defense contractor supplying advanced military systems. Stock had underperformed peer group due to losing fighter jet contract to Boeing and $1.6 billion charge on programs, but company has strong defense programs and long dividend increase history. |
Defense Contractor Military Systems Lockheed Martin Government Aerospace | |
| 2025 Q2 |
TariffsThe administration's reciprocal tariffs announced on April 2 caused significant market volatility, with stocks falling more than 12% before recovering on a 90-day postponement announcement. The biggest risk going forward continues to be the ultimate resolution of reciprocal tariff negotiations, which could hurt the economy and equity market if not resolved favorably. |
Trade Policy Volatility Economic Risk |
VolatilityQ2 was characterized by tremendous volatility driven by tariff announcements, budget negotiations, and geopolitical uncertainties. The market fell over 12% following tariff announcements before rallying 25% from April lows. Matrix expects volatility to persist in the second half with continued sector rotation and headline-driven markets. |
Market Volatility Sector Rotation Headlines | |
SemiconductorsMatrix initiated a new position in Applied Materials, citing surging demand for advanced chips that fuel Artificial Intelligence and high-performance computing driving significant investment in semiconductor manufacturing equipment. AMAT is well positioned to capitalize on this trend with strong cash flow generation. |
AI Semiconductor Equipment Manufacturing | |
DividendsThe Dividend Income Strategy delivered strong results with seven portfolio holdings increasing dividends by an average of 5.9% in Q2. Fifteen companies increased dividends by 6.2% in the first half, with 22 of 23 portfolio companies raising dividends in the past year for a total portfolio dividend increase of 5.9%. |
Income Dividend Growth Yield | |
ValueMatrix emphasizes attractive valuations across portfolios, with the Large Cap Value portfolio trading at 15.7x estimated 2026 earnings versus the S&P 500's 20.9x multiple. The firm actively deployed cash during market weakness to add to undervalued positions while trimming overvalued holdings. |
Valuation P/E Multiples Opportunistic | |
| 2025 Q1 |
Trade PolicyThe administration's tariff threats and April 2 Liberation Day 10% tariffs on all imports created significant market disruption and economic uncertainty. The manager views these tariffs as a policy mistake that will lead to inflation and economic slowdown, comparing them to an act of war that taxes goods and disrupts the post-war economic system. |
Tariffs Trade Inflation Policy Economic |
VolatilityThe market experienced heightened volatility with the S&P 500 declining 4.27% in Q1 and an additional 11.9% decline over two days following tariff announcements. The manager expects continued elevated volatility but views this as creating attractive buying opportunities for high-quality stocks at discounted valuations. |
Market Volatility Decline Opportunity Uncertainty | |
ValueThe market selloff has created attractive valuations with the LCV portfolio trading at 15.2x 2025 estimated earnings compared to the S&P 500's 18.8x multiple. The manager is actively deploying cash to take advantage of high-quality companies selling at discounted prices following the recent market decline. |
Valuation Discount Earnings Multiple Attractive | |
DividendsThe Dividend Income portfolio companies demonstrated strong dividend growth with eight companies raising dividends by an average of 5.6% in Q1 and all twenty-four companies raising dividends in 2024 by an average of 6.2%. The portfolio maintains a 3.03% dividend yield with companies averaging 17 consecutive years of dividend increases. |
Dividend Growth Yield Income Consistent | |
| 2024 Q4 |
ValueManager expects Value to outperform Growth after more than a decade of underperformance. They anticipate market rotations in 2025 and a regression to the mean for Growth stocks, creating a favorable environment for Value investing that would provide a tailwind for Matrix's portfolios. |
Value Growth Rotation Outperformance Regression |
DividendsThe Dividend Income portfolio maintains a 2.88% dividend yield versus 1.27% for the S&P 500. All 24 companies in the portfolio raised dividends in 2024 by an average of 6.2%, demonstrating consistent income generation and growth potential. |
Dividends Income Yield Growth Distribution | |
RatesThe Fed cut rates three times in 2024 and expectations are for additional cuts in 2025. The 10-year Treasury yield rose to 4.58% by year-end, creating attractive opportunities in short-term bonds while the manager remains cautious on longer-dated securities. |
Rates Fed Treasury Yield Bonds | |
| 2024 Q3 |
DividendsMatrix's Dividend Income portfolio delivered strong performance with 19 holdings raising dividends by 6.4% average in nine months. The portfolio maintains a 2.80% dividend yield versus 1.28% for S&P 500, with 23 of 24 holdings increasing dividends over past 12 months by 6.1% average. |
Dividend yield Income generation Dividend growth Shareholder returns Dividend strategy |
RatesFed's September 0.5% rate cut significantly reduces recession risk and benefits interest-sensitive sectors like Utilities and Real Estate. Lower rates expected to spur economic growth, improve loan demand for banks, and support housing market recovery through 2025. |
Interest rates Fed policy Rate cuts Monetary policy Economic growth | |
ValueLarge Cap Value portfolio trades at attractive 17.1x 2025 P/E versus S&P 500's 20.9x multiple. Manager continues finding opportunities in high-quality companies fallen out of favor due to market psychology or short-term business issues, with patient capital deployment approach. |
Valuation P/E multiples Undervalued Market psychology Value investing | |
| 2024 Q2 |
AITechnology and Communications Services sectors, holding many stocks benefiting from the booming interest in artificial intelligence, continued to lead market returns in Q2 2024. The market action in June focused almost exclusively on the AI Mega Tech melt up and left most other areas in the dust, feeling like it is hitting extremes. |
Technology Communications Mega Tech Market Leadership Valuations |
DividendsThe Matrix Dividend Income strategy continues to deliver on its three objectives: generating high current and growing income, downside protection, and capital appreciation. In Q2, eight portfolio holdings raised their dividends by an average of 5.9%, and fifteen holdings have raised dividends by an average of 6.7% in the first six months. |
Income Growth Yield Shareholder Returns Cash Flow | |
ValueThe LCV portfolio trades at 15.3x 2025 estimated earnings versus the S&P 500's 19.7x, demonstrating attractive valuations. There are parts of the market that are fully priced, but there are also many pockets of undervaluation that should benefit as market leadership broadens. |
Valuations Multiples Undervaluation Relative Value Fundamentals | |
| 2024 Q1 |
UtilitiesUtilities were the worst-performing sector in 2023, creating opportunities to buy high-quality companies with predictable earnings and dividend growth. The sector has emerging growth potential as electricity demand for AI, data centers, and new technology is projected to rise rapidly through the end of the decade. Matrix increased utility exposure from 4% to 10.5% of the portfolio. |
Electric Utilities Dividend Growth AI Power Demand Grid Infrastructure Defensive |
RatesThe Fed is expected to cut interest rates later in 2024, which should provide a favorable environment for stocks and immediately boost housing activity. Lower mortgage rates would positively impact the economy through housing market recovery. Matrix believes rate cuts are the most significant positive market event to look forward to. |
Fed Cuts Housing Recovery Mortgage Rates Economic Stimulus Market Catalyst | |
AITechnology companies with AI-related businesses delivered some of the best gains in Q1 2024, continuing the leadership from 2023. Electricity demand to power AI and data centers is driving new growth opportunities for utility companies. NextEra Energy CEO expects double-digit electricity demand increases over five years driven by AI, electrification, and chip factories. |
Technology Leadership Data Centers Power Demand Infrastructure Growth Driver | |
DividendsEight portfolio holdings raised dividends by an average of 6.7% in Q1. The Matrix Dividend Income portfolio maintains a 2.98% dividend yield compared to 1.36% for the S&P 500. Matrix expects a rotation that should benefit dividend-paying stocks after a long period of growth and low-dividend stock leadership. |
Dividend Growth Income Strategy Yield Premium Rotation Opportunity Value Rotation | |
ValueMatrix expects some of 2023's laggards to provide healthy gains as they close the performance gap and the narrow rally broadens to encompass more stocks and sectors. The firm would not chase 2023's winners and sees pockets of undervaluation despite some areas of overvaluation in mega-cap Technology and Growth stocks. |
Laggard Recovery Market Broadening Undervaluation Performance Gap Contrarian | |
| 2023 Q4 |
ValueMatrix focuses on investing in quality companies at significant discounts to intrinsic value, using eight proprietary valuation models to identify undervalued stocks across all industries. The strategy emphasizes better companies in better industries to avoid value traps. |
Undervalued Intrinsic Value Quality Discount Valuation |
| 2023 Q3 |
RatesInterest rates rose sharply in Q3 with 10-year Treasury reaching 4.57%, highest since 2007. The Fed raised rates by 0.25% and signaled higher for longer policy. Matrix believes the Fed is nearing the end of its hiking cycle and expects rate cuts in 2024 as economic slowdown becomes evident. |
Fed Funds Treasury Monetary Policy Rate Cuts Yield Curve |
DividendsMatrix's Dividend Income portfolio focuses on dividend-paying companies with 17 holdings announcing dividend increases averaging 6.8% in 2023. The portfolio yields 3.35% compared to 1.61% for the S&P 500. Six more companies expected to raise dividends before year-end. |
Dividend Yield Dividend Growth Income Payout Distribution | |
ValueMatrix's Large Cap Value portfolio trades at attractive valuations with P/E multiples of 15.6x 2023 and 13.9x 2024 earnings, well below S&P 500's 19.4x and 17.3x. Embedded appreciation potential at 49.9%, well above long-term average. |
P/E Multiple Valuation Undervalued Fair Value Appreciation | |
InflationMatrix expects continued progress on inflation which should support Fed pivot to rate cuts. They believe the Fed may be making the mistake of keeping rates high too long, similar to being behind the curve in early 2021 when inflation was accelerating. |
Price Stability Fed Policy Economic Data Monetary Policy Disinflation | |
| 2023 Q2 |
AIAI enthusiasm has driven investor interest in technology stocks expected to benefit from artificial intelligence advances. The AI rally has boosted mega-cap technology stocks significantly in 2023, though the manager expects this AI mania to eventually subside as the market broadens. |
Technology Growth Semiconductors Software Innovation |
DividendsDividend-paying stocks have significantly underperformed in 2023 as investors favored non-dividend-paying technology stocks. The manager views this as the worst first-half performance for dividend payers relative to non-payers since 2009, but expects a powerful reversal and catch-up period ahead. |
Income Value Yield Defensive Quality | |
ValueValue stocks have struggled in 2023 despite attractive valuations, with the manager's Large Cap Value portfolio benefiting from exposure to mega-cap technology plays rather than traditional value sectors. The manager expects value laggards like Financials, Healthcare, and Industrials to contribute meaningfully in the second half. |
Undervalued Financials Healthcare Industrials Multiples | |
BuybacksInsider buying activity has reached the highest levels in many years across the manager's portfolios, with 16.7% of large-cap value holdings and 28% of dividend income positions showing meaningful insider purchases. This elevated insider buying strongly supports the manager's bullish outlook. |
Insiders Management Confidence Valuation Signal | |
| 2023 Q1 |
Regional BanksThree U.S. banks failed in March including Silicon Valley Bank, creating concerns about banking system stability. Manager believes the selloff in regional bank stocks is overdone and will be short-lived, expecting strong rebounds in high-quality financials. Added PNC Financial and increased positions in other regional banks during the quarter. |
Banking Credit Financials Deposits Liquidity |
DividendsNine portfolio holdings raised dividends by an average of 6.1% in Q1. The Dividend Income portfolio yielded 3.12% compared to 1.68% for the S&P 500. Manager continues to focus on companies with consistent dividend growth and safe payout ratios. |
Income Yield Payout Growth Distribution | |
RatesFederal Reserve raised rates twice in Q1 by 0.25% each time, bringing short-term rates to 4.75%-5.00%. Manager believes rates have likely peaked for this cycle and expects the Fed to pause or stop after possibly one more hike due to banking stress concerns. |
Fed Monetary Policy Yield Curve Treasury Policy | |
ValueMarket valuations came down significantly in 2022 while earnings and dividends rose for many high-quality companies. Manager's valuation work shows above-average appreciation potential with the Large Cap Value portfolio having 44% estimated upside potential and trading at a 14% discount to the S&P 500. |
Valuation Discount Upside Multiple Price |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Sep 30, 2023 | Fund Letters | Matrix Large Cap Value Strategy | HRTX | RTX Corp. | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, CEO, Commercial Aviation, Defense, Engine, Military, turnaround, Value | Login |
| Sep 30, 2023 | Fund Letters | Matrix Large Cap Value Strategy | NEE | NextEra Energy | Utilities | Electric Utilities | Bull | NYSE | Battery Storage, Dividend Growth, Florida, regulated utility, renewable energy, Solar, utilities, Value, Wind | Login |
| Jul 10, 2023 | Fund Letters | Matrix Large Cap Value Strategy | AAPL|MSFT|NFLX|NVDA|UNH | UnitedHealth Group | Health Care | Health Care Providers & Services | Bull | NYSE | defensive, health insurance, healthcare, market leader, Medical Services, premium valuation, Regulatory risk | Login |
| Jul 10, 2023 | Fund Letters | Matrix Large Cap Value Strategy | PFE | Pfizer Inc. | Health Care | Pharmaceuticals | Bull | NYSE | cardiovascular, dividend yield, infectious diseases, pharmaceuticals, Post-COVID Transition, Vaccine Portfolio, Value | Login |
| Jul 28, 2026 | Fund Letters | Matrix Large Cap Value Strategy | ABT | Abbott Laboratories | Medical Devices | Health Care Equipment | Bull | New York Stock Exchange | diagnostics, dividend aristocrat, Equity, healthcare, Medical devices, Nutrition, pharmaceuticals, recurring revenue, Value | Login |
| Jul 28, 2026 | Fund Letters | Matrix Large Cap Value Strategy | MCD | McDonald's Corporation | Restaurants | Hotels, Restaurants & Leisure | Bull | New York Stock Exchange | cash flow, Consumer Discretionary, dividend, Equity, Fast Food, franchise model, Restaurants, turnaround, Value | Login |
| May 13, 2026 | Fund Letters | Matrix Large Cap Value Strategy | INTU | Intuit Inc. | Software - Application | Application Software | Bull | NASDAQ | AI disruption, Ecosystem, financial technology, SaaS, small business, Software, tax preparation, Value | Login |
| May 13, 2026 | Fund Letters | Matrix Large Cap Value Strategy | NKE | Nike Inc. | Footwear & Accessories | Footwear | Bull | New York Stock Exchange | Apparel, Athletic Footwear, Brand, China, direct-to-consumer, insider buying, turnaround, Wholesale | Login |
| May 13, 2026 | Fund Letters | Matrix Large Cap Value Strategy | ADP | Automatic Data Processing Inc. | Software - Application | Data Processing & Outsourced Services | Bull | NASDAQ | AI disruption, business services, Client Retention, defensive, dividend aristocrat, HR Administration, Payroll Services | Login |
| May 13, 2026 | Fund Letters | Matrix Large Cap Value Strategy | PG | Procter & Gamble Co. | Household & Personal Products | Personal Products | Bull | New York Stock Exchange | Consumer products, consumer staples, defensive, dividend aristocrat, Global, inflation impact, innovation | Login |
| Aug 7, 2025 | Fund Letters | David A.Katz | AMAT | Applied Materials Inc. | Information Technology | Semiconductor Equipment | Bull | NASDAQ | AI, CapEx, Equipment, Fabrication, semiconductors | Login |
| Jul 8, 2025 | Fund Letters | Matrix Large Cap Value Strategy | AMAT | Applied Materials | Information Technology | Semiconductor Equipment | Bull | NASDAQ | Artificial Intelligence, buybacks, cash flow generation, dividends, high-performance computing, Manufacturing Equipment, R&D investment, semiconductor equipment, technology | Login |
| Jul 8, 2025 | Fund Letters | Matrix Large Cap Value Strategy | FI | Fiserv | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | contrarian, digital banking, financial services, financial technology, Guidance Disappointment, payment processing, risk/reward, Round-Trip Trade | Login |
| Jul 8, 2025 | Fund Letters | Matrix Large Cap Value Strategy | UNH | UnitedHealth Group | Health Care | Managed Health Care | Bear | NYSE | Business Model Risk, CEO departure, Earnings miss, Guidance Suspension, Healthcare Policy, Managed Health Care, Medical Claims Costs, risk management | Login |
| Mar 31, 2025 | Fund Letters | Matrix Large Cap Value Strategy | GNRC | Generac Holdings Inc. | Industrials | Electrical Equipment | Bull | NYSE | backup power, Commercial, energy storage, Industrial, infrastructure, Power generation, Residential, secular growth | Login |
| Mar 31, 2025 | Fund Letters | Matrix Large Cap Value Strategy | PEP | PepsiCo Inc. | Consumer Staples | Soft Drinks | Bull | NASDAQ | Beverages, consumer staples, defensive, Dividend Growth, Processed Foods, Snacks, Volatile Market, weight-loss drugs | Login |
| Mar 31, 2025 | Fund Letters | Matrix Large Cap Value Strategy | TGT | Target Corporation | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | 50-Year Dividend Growth, Consumer Discretionary, dividend aristocrat, Economic Slowdown, General Merchandise, retail, tariffs, Value | Login |
| Dec 31, 2024 | Fund Letters | Matrix Large Cap Value Strategy | AMGN | Amgen Inc. | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, contrarian, FDA approval, healthcare, Monthly Dosing, obesity treatment, pharmaceuticals | Login |
| Dec 31, 2024 | Fund Letters | Matrix Large Cap Value Strategy | DG | Dollar General Corporation | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | defensive, discount retail, Lower Income Consumers, Multi-year Lows, Rural Markets, turnaround, Value retail | Login |
| Dec 31, 2024 | Fund Letters | Matrix Large Cap Value Strategy | PEP | PepsiCo, Inc. | Consumer Staples | Soft Drinks | Bull | NASDAQ | Adaptable Management, Below Market Valuation, consumer staples, defensive, dividend yield, Political headwinds, Value | Login |
| Sep 30, 2024 | Fund Letters | Matrix Large Cap Value Strategy | MDT | Medtronic | Health Care Equipment & Services | Health Care Equipment | Bull | NYSE | Bull market, healthcare, Medical devices, medical technology, pandemic recovery, procedure volumes, Value | Login |
| Sep 30, 2024 | Fund Letters | Matrix Large Cap Value Strategy | BDX | Becton Dickinson | Health Care Equipment & Services | Health Care Equipment | Bull | NYSE | Acquisitions, Critical Care, earnings beat, healthcare, Medical devices, medical technology, Value | Login |
| Sep 30, 2024 | Fund Letters | Matrix Large Cap Value Strategy | NESN.SW | Nestlé | Consumer Staples | Packaged Foods & Meats | Bull | SIX Swiss Exchange | CEO transition, consumer staples, defensive, Dividend Growth, Global Brands, Packaged Foods, Swiss, Value | Login |
| Jun 30, 2024 | Fund Letters | Matrix Large Cap Value Strategy | LOW | Lowe's Companies Inc | Consumer Discretionary | Home Improvement Retail | Bull | NYSE | Consumer Discretionary, COVID-19 Beneficiary, home improvement, market share, Remodeling, retailer, Value | Login |
| Jun 30, 2024 | Fund Letters | Matrix Large Cap Value Strategy | MDT | Medtronic plc | Health Care | Health Care Equipment | Bull | NYSE | Biomedical, COVID-19 recovery, earnings growth, Global, healthcare, Implantable Devices, Medical devices, Value | Login |
| Mar 31, 2024 | Fund Letters | Matrix Large Cap Value Strategy | AEP | American Electric Power | Utilities | Electric Utilities | Bull | NASDAQ | activist investor, AI infrastructure, Carl Icahn, data centers, defensive, Dividend Growth, Electric Utility, Predictable Earnings | Login |
| Mar 31, 2024 | Fund Letters | Matrix Large Cap Value Strategy | TSN | Tyson Foods | Consumer Staples | Packaged Foods & Meats | Bull | NYSE | Beef, Chicken, Cost Reduction, Cyclical Recovery, Food Brands, Pork, Protein Processing, turnaround | Login |
| Apr 11, 2023 | Fund Letters | Matrix Large Cap Value Strategy | PNC | PNC Financial Services Group Inc | Financials | Regional Banks | Bull | NYSE | asset management, Credit risk, dividend, financials, National Expansion, regional banks, technology, Treasury Services | Login |
| Apr 11, 2023 | Fund Letters | Matrix Large Cap Value Strategy | SUNP IN | Union Pacific Corporation | Industrials | Railroads | Bull | NYSE | Cost advantage, dividend, Industrials, market share, Mexico, railroads, Transportation, Trucking, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| FDX | During the quarter, we sold the portfolio's position in Federal Express. The company's recent results exceeded expectations, and its stock price reached our appraisal of its full value. |
| BK | We trimmed some positions in the financial sector (again): Bank of New York Mellon, Morgan Stanley, and Goldman Sachs. All three reached new highs in the quarter, and their size in the portfolio had become overweighted. We also reduced positions in the financial names, Bank of New York Mellon and Morgan Stanley, the retailer Target, and the utility NextEra Energy after strong stock price performance. |
| MS | We trimmed some positions in the financial sector (again): Bank of New York Mellon, Morgan Stanley, and Goldman Sachs. All three reached new highs in the quarter, and their size in the portfolio had become overweighted. We also reduced positions in the financial names, Bank of New York Mellon and Morgan Stanley, the retailer Target, and the utility NextEra Energy after strong stock price performance. |
| GS | We trimmed some positions in the financial sector (again): Bank of New York Mellon, Morgan Stanley, and Goldman Sachs. All three reached new highs in the quarter, and their size in the portfolio had become overweighted. |
| GOOGL | We also modestly trimmed the Technology names Alphabet (Google), Applied Materials, Qualcomm, and Generac (mostly in tax-exempt accounts) as these positions had become oversized because of significant stock price appreciation. |
| AMAT | We also modestly trimmed the Technology names Alphabet (Google), Applied Materials, Qualcomm, and Generac (mostly in tax-exempt accounts) as these positions had become oversized because of significant stock price appreciation. |
| QCOM | We also modestly trimmed the Technology names Alphabet (Google), Applied Materials, Qualcomm, and Generac (mostly in tax-exempt accounts) as these positions had become oversized because of significant stock price appreciation. We trimmed positions in the technology names Qualcomm and Texas Instruments after their share price gains made them oversized in the portfolio. |
| GNRC | We also modestly trimmed the Technology names Alphabet (Google), Applied Materials, Qualcomm, and Generac (mostly in tax-exempt accounts) as these positions had become oversized because of significant stock price appreciation. |
| INTU | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. |
| LOW | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. |
| MDT | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| META | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. |
| NKE | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. |
| PEP | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| TEL | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. |
| TMO | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. |
| TSN | We added to the portfolio's holdings in Intuit, Lowe's, Medtronic, Meta (Facebook), Nike, PepsiCo, TE Connectivity, Thermo Fisher Scientific, and Tyson Foods. We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| ABT | During the quarter, we started new partial positions in Abbott Laboratories (ABT) and McDonald's (MCD). ABT is a diversified global healthcare company that operates across four primary business segments: Medical Devices, Diagnostics, Nutrition, and Established Pharmaceuticals. We believe that the company is an attractive investment for the portfolio because of its recurring revenues, strong balance sheet, 54 years of dividend increases, and its price pullback from a 52-week high of $139 to its current price of under $90. At less than 16 times estimated 2026 earnings, the stock is trading at a 25% discount to the market and its own P/E multiple history. At our purchase price, the dividend yield was 2.8%. |
| MCD | During the quarter, we started new partial positions in Abbott Laboratories (ABT) and McDonald's (MCD). MCD is a multinational fast-food chain known for its hamburgers, French fries, and signature items such as the Big Mac and Happy Meal. Historically, the company's financial performance has been very resilient. Ninety-five percent of McDonald's restaurants are owned by franchisees who pay employee wages, local utilities, and food costs. The company charges franchisees for rent, sales royalties, and a one-time licensing fee. MCD generates significant cash flow and has paid a dividend every year since declaring its first dividend in 1976. The company's shares were trading near their 52-week low amid concerns about weaker customer traffic, the negative impact of inflation on consumer spending, and price wars. We believe the company will work through these near-term issues, and the current lower share price and healthy dividend make it an attractive investment for the MDI portfolio. At our purchase price, the dividend yield was 2.8%. |
| TXN | We trimmed positions in the technology names Qualcomm and Texas Instruments after their share price gains made them oversized in the portfolio. |
| TGT | We also reduced positions in the financial names, Bank of New York Mellon and Morgan Stanley, the retailer Target, and the utility NextEra Energy after strong stock price performance. |
| NEE | We also reduced positions in the financial names, Bank of New York Mellon and Morgan Stanley, the retailer Target, and the utility NextEra Energy after strong stock price performance. We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| ACN | For taxable accounts, we realized a loss in Accenture, a name we expect to repurchase after 31 days. |
| ADP | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| CMCSA | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| STZ | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| HD | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| PG | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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