SSR LLC
is a sell-side research venture built to provide an essential, yet missing, element of research: the weighting of sub-sectors within broad industrial categories. By simultaneously maintaining both a broad view of our industries, and a fundamentally detailed view of the sub-sectors that make up these industries, we offer guidance on portfolio composition that we believe is both highly impactful, and otherwise unavailable. Learn More…
Healthcare
For most households, the marginal costs of acquiring health coverage on an exchange are within shouting distance of the annual cost of a new car (Exhibit 1); and, the odds of health costs (if uninsured) exceeding costs of coverage (if insured) are less than 50 pct (Exhibit 3). Among subsidy-eligible households, in many cases net premium costs are higher for younger (and presumably healthier) than for older (and presumably sicker) beneficiaries with similar incomes (Exhibit 4). It follows that many households – especially younger and healthier – may choose not to purchase coverage... Read more
Tech / Media / Telecom
The TMT sector is in the midst of a comprehensive once-in-a-generation paradigm shift driven by the contemporaneous maturation of several key innovations that offer consumers and businesses new and significantly better ways to use information. In this, we expect the few platforms that control user experiences (AAPL, GOOG, MSFT, maybe AMZN) will capture a disproportionate share of value… Read more
Industrials / Materials
Early in the year we commented on the relative high value of most of the Industrials and Materials sectors and suggested that it would be hard for the group to outperform a rising market. The market has been rising quite quickly – the S&P 500 is up 14% year to date – and the Industrials and Materials group has lagged. We would expect this lag to continue given that we see no signs of a quick recovery in the global economy and given the importance of consumption growth to these sectors. Moreover, on market down days, these groups go down too because there is an instinct to sell the higher beta names first…. Read more