Skip to main content.
Home / Virtus Voices / Volatility in Perspective—KAR Panel Discussion

Volatility in Perspective—KAR Panel Discussion

This Volatility in Perspective recording is one of a series of market updates featuring investment professionals from Virtus affiliated managers discussing how the coronavirus crisis is affecting capital markets and their investment portfolios. In this recording, Kayne Anderson Rudnick CIO Doug Foreman is joined by portfolio managers Jon Christensen and Craig Thrasher to offer perspective on the global volatility, how KAR’s quality-driven portfolios are faring, and field a range of questions on the impact of the pandemic on U.S. and international equities.

Replay of a call held March 31, 2020, moderated by Barry Mandinach, Executive Vice President, Virtus Investment Partners.

Among the topics discussed:

  • How the COVID-19 pandemic-driven recession compares to past recessions – and the early signs that will let investors know when a recovery is underway
  • Sectors/businesses expected to be hardest hit and permanently impaired longer term, and sectors/businesses that stand to benefit over the next 3-5 years – the types of companies KAR is always focused on
  • How KAR portfolios—U.S. and international—have been holding up (Answer: Relatively well due to KAR’s philosophy and emphasis on companies with lower business risk, lower credit risk, lower balance sheet risk)
  • What KAR is doing to use the downturn to “fortify” their portfolios with quality businesses at low valuations
  • Expectations for small vs. large companies and the longer-term implications for rebalancing and rebuilding equity allocations

Listen Now

Featuring

Doug Foreman

Doug Foreman, CFA
Chief Investment Officer and Portfolio Manager

John Christensen 150x150

Jon Christensen, CFA
Portfolio Manager and Senior Research Analyst

Craig Thrasher

Craig Thrasher, CFA
Portfolio Manager and Senior Research Analyst

IMPORTANT RISK CONSIDERATIONS
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk. Limited Number of Investments: Because the fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a less concentrated fund. Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund. Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk. Non-Diversified: The fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the fund's assets. Market Volatility: Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended. Prospectus: For additional information on risks, please see the fund’s prospectus.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates, or its sub advisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions. 

Please consider a Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other information about any Virtus Fund, contact your financial representative, call 800-243-4361, or visit virtus.com for a prospectus or summary prospectus. Read it carefully before investing.

Not all products or marketing materials are available at all firms. Not insured by FDIC/NCUSIF or any federal government agency. No bank guarantee. Not a deposit. May lose value.

Securities distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.

© 2020 Virtus Investment Partners, Inc.