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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Claret Asset Management 2023 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Claret Asset Management)

Primary Source Intelligence • Q3 2023 Letter Analysis

Claret Asset Management Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Claret Asset Management. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Positioning StanceConstructive

GeographyUS, Global

Digest Analysis

Quick Take

"Claret sees Q3 market weakness from rising rates as creating opportunities beyond the Magnificent Seven. Despite recession indicators like inverted yield curves and geopolitical risks, the manager remains optimistic about abundant global equity opportunities."

Executive Summary

Claret Asset Management's Q3 2023 letter addresses market weakness amid rising interest rates and macro uncertainty. The S&P 500 declined 3.27% in Q3 as Federal Reserve policy tightened to combat inflation. The manager examines key indicators including the inverted yield curve (inverted since July 2022), which historically precedes recessions by 15 months. Oil prices have stabilized around $85 after recovering from pandemic lows, with OPEC+ managing supply to support pricing. The Ukraine war continues creating geopolitical uncertainty, though historical data shows mixed market impacts from conflicts. The manager criticizes speculative excess, highlighting Vinfast's IPO bubble as an example of valuation extremes. Rather than focusing on macro forecasting, Claret emphasizes business analysis and sees abundant opportunities beyond the Magnificent Seven stocks that dominated recent performance. The firm maintains an optimistic outlook, believing there are numerous growth opportunities across global equity markets for investors willing to look beyond the current market favorites and focus on companies with sustainable competitive advantages.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

45%

CautiousHigh

Moderate (45%)

The letter is primarily macro commentary and philosophical discussion without naming specific portfolio positions or sizing. The manager expresses strong views about avoiding the Magnificent Seven and finding opportunities elsewhere, but provides no concrete positioning details or specific investment names beyond negative commentary on Vinfast.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager acknowledges market challenges from rising rates and recession indicators but maintains an optimistic view that opportunity is abundant in global equity markets beyond popular stocks.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The letter suggests a selective approach, avoiding the Magnificent Seven while seeking opportunities elsewhere, indicating moderate risk appetite with some caution about popular names.

Capital Deployment

0%

De-riskingDeploying

De-risking (0%)

No information provided about cash levels, position sizing changes, or specific deployment activity. The letter focuses on macro analysis and general investment philosophy without discussing actual portfolio moves.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

The manager expresses clear intent to focus on business analysis and find opportunities beyond current market favorites, showing a constructive deployment bias despite macro headwinds.

Language Signal

20%

BearishBullish

Bearish (20%)

Language is balanced with both risk acknowledgment (recession indicators, rate pressures) and opportunity language (abundant opportunities, optimistic), with slightly more constructive framing overall.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

The manager identifies multiple specific macro risks including inverted yield curve at historical recession timeframe, rising interest rates, geopolitical tensions from Ukraine war, and upcoming mortgage renewal stress. These risks are discussed in detail with historical context.

Opportunity Density

75%

ScarceAbundant

Abundant (75%)

The manager explicitly states they are optimistic and think opportunity is abundant, rejecting the notion that there are only 7 growth opportunities in the entire global equity market. This suggests a rich opportunity set beyond popular names.

Time Horizon

60%

Short-TermLong-Term

Multi-Year (60%)

The manager emphasizes focusing on business analysis and companies with industry tailwinds rather than short-term macro forecasting, suggesting a medium-term investment approach of 1-3 years without specific catalyst dependency.