Q4 2020 Reaves Long Term Value Strategy Fact Sheet

Reaves Asset Management has over four decades of experience investing in publicly listed equities. Reaves is a privately held, independently owned company. View the Q4 2020 Reaves Long Term Value Strategy Fact Sheet.

Fourth Quarter 2020

In 2020, Reaves’ LTV Wrap Composite performed in line with what one may have expected from a defensive equity strategy in a year that included a global pandemic, a market crash, record high unemployment, and a disputed presidential election. Most companies in the portfolio grew earnings and raised dividends despite the challenges during the year, highlighting the essential nature of their services and the potential to remain profitable through the economic cycle.

Investors: You Asked, We Answered

Thousands of strategies. Hundreds of questions. Investment due diligence isn’t easy. We want to simplify it for you. Here are the answers to the most common questions advisers and consultants ask us during the due diligence process.

The Case for Essential Services Infrastructure

Investing in infrastructure companies using an essential service approach may help reduce downside risk in portfolios. We explain in this paper.

The Case for Actively Managed Utilities

Understanding and navigating inefficiencies in the utilities sector.

Q&A with Reaves CEO and Co-Portfolio Manager, Jay Rhame

How does investing in infrastructure companies provide natural downside protection? Reaves Asset Management CEO Jay Rhame explains.

Schedule a Call with a PM

Let us make your due diligence easier. If any Reaves Asset Management strategies are on your radar, we’d be happy to coordinate a call with a portfolio manager.

Subscribe To Our Insights

In today’s market investors are looking for a defensive equity strategy with growth opportunity. Reaves Asset Management offers both. Sign up today to receive our market insights delivered to your inbox.

Third Quarter 2020

Reaves’ LTV Strategy Wrap Composite returned 8.7% in the third quarter of 2020, improving the year-to-date return to -2.4%. Excluding any de minimus positions, all segments of the composite were positive in the quarter, led by railroads, cable broadband, and utilities focused on renewable energy development. This last group is something we focus on in more detail below.

Second Quarter 2020

In the second quarter, the Reaves LTV Strategy Wrap Composite recovered a portion of last quarter’s COVID-induced decline. The advance was uneven, with growth stocks substantially outperforming defensive and value-oriented companies. Companies with visible long-term growth and economic re-opening stories were the winners.

First Quarter 2020

Reaves Asset Management strives to invest in companies that we believe will be steady in good times and bad. We take comfort in knowing that essential electric, gas, water, and communications services will continue to be utilized even during this period of extreme economic disruption from the COVID-19 pandemic.

Fourth Quarter 2019

We are pleased to report that the Reaves Long Term Value Strategy (LTV)1 had a strong year in 2019 advancing by 31.4% gross of fees and 28.2% net of fees.

Third Quarter 2019

Reaves Institutional Composite appreciated for the third consecutive quarter thanks to strong performance from holdings in the utilities and communications sectors.

Second Quarter 2019

Reaves Institutional Composite had another strong quarter. The composite returned +4.1%, net-of-fees, in the second quarter of 2019, outperforming its benchmark return of +1.3%.

First Quarter 2019

The first quarter of 2019 was Reaves’ third best quarter in our 41-year history of managing equity portfolios. Our institutional composite returned 15.8%, net of fees, with all sectors generating positive double-digit performance.

Fourth Quarter 2018

At the beginning of 2018, investment strategists forecasted rising interest rates, strong economic growth and accelerating corporate earnings because of the federal tax cut. The conclusion was to sell utilities.

Third Quarter 2018

One of the main reasons for Reaves’ historical outperformance is a contrarian investment philosophy – we look for growth in areas where investors typically focus on yield. When buying utilities, a manager is often making a macro decision, not a fundamental company decision.

Second Quarter 2018

The ERISA Composite returned 6.67%, net of fees, during the second quarter, outperforming both Reaves’ custom equal-weighted benchmark and the S&P 500 Index returns of 5.38% and 3.43%, respectively.

First Quarter 2018

The ERISA Composite returned -4.3%, net of fees, in the first quarter which trailed the -0.8% return of the S&P 500 Index. Our investments in communications stocks struggled due to investor concerns about merger and acquisition activity and video subscription levels at cable TV companies.