20 Jul Financial Services Separately Managed Account Program (FS SMAP) July 2020 Update
Our holdings in the ELCO Regional Banks Separately Managed Account program were severely challenged by the COVID-19 pandemic. Regional and community bank stocks have been pressured due to the unprecedented hardship from the pandemic-induced slowdown due to skyrocketing unemployment that has increased the default risk across loan portfolios. In addition, low rates have created headwinds by reducing spread revenues. As such, according to Bloomberg, the KBW Regional Banking Index is trading near the biggest discount to the broader market since at least 2005.
August turned out to be a strong month for the ELCO Select Fund (August +3.91, YTD +31.32%) as the energy crisis in Europe continues to rage on. These unfortunate events highlight the need for an “all of the above” global energy policy. This is especially...
Jul 7, 2022 – ELCO Management hosts our sub-advisor Yves Siegel of Siegel Asset Management Partners fireside chat with EQT’s CEO and President Toby Rice and CFO Dave Khani
ELCO Water Scarcity
ELCO Financial Services Separately Managed Account 2nd Quarter 2021 Investor Update As we look back to what was a strong first half of 2021 boosted by a flurry of mergers and acquisitions as well as significant loan growth via the government’s PPP (Paycheck Protection Program)...
ELCO Water and Climate Impact SMA 2nd Quarter 2021 Investor Update The ELCO Water and Climate Impact SMA (formly ELCO Water Opportunities SMA) strategy has performed in-line with our expectations for the first half of 2021 and we expect the positive trend to continue as...
In Our View: The IEA’s Energy Transition Pathway to Net Zero Emissions by 2050 is Highly Uncertain In May, The International Energy Administration (IEA) released, “Net Zero by 2050, A Roadmap for the Global Energy Sector.” This detailed report highlights one possible pathway to achieve...
Our holdings in the ELCO Regional Banks Separately Managed Account program were severely challenged by the COVID-19 pandemic. Regional and community bank stocks have been pressured due to the unprecedented hardship from the pandemic-induced slowdown due to skyrocketing unemployment that has increased the default risk across loan portfolios.
After many discussions with, Water Asset Management, sub-adviser to ELCO’s Water Opportunities SMAP, and our own industry observations, we wanted to communicate our thoughts regarding your investment in the program. The portfolio has benefitted from the defensive nature of the regulated water utilities and the essential infrastructure and services these companies provide.
We wanted to reassure you that your portfolio is invested in the highest quality companies that have rock solid balance sheets, commanding market presence, and most importantly the ability to survive this pause in economic activity and thrive as growth returns.
While not completely an “apples to apples” comparison, the current extreme environment is reminiscent of the 2008 experience which also wreaked havoc on the midstream industry. At that time, oil prices collapsed, and midstream companies sold off due to leveraged investor liquidations and the overall lack of confidence the industry could sustain its cash-flow and dividend payments
At this very difficult moment, we want to reach out to re-affirm our commitment to you, as a client of the firm. First and foremost, we hope this update finds you and your families healthy and safe as our society collectively works to stem the impact of the global Coronavirus pandemic.