New and necessary government mandates to combat the spread of coronavirus and the COVID-19 illness it causes are producing unprecedented challenges for investors. This time the negative impact is indiscriminate — impaired business activity and enforced quarantines are producing negative consequences for both strong and weak companies. Alongside the acceleration of market volatility, we have been conducting extreme stress-testing on all of our holdings for heavy pressure on revenue, profit, and cash flow, going beyond the usual EBITDA and leverage metrics. Read More...
How a fund manager is putting all his ‘stable’ stocks through ‘extreme stress-testing’
New and necessary government mandates to combat the spread of coronavirus and the COVID-19 illness it causes are producing unprecedented challenges for investors. This time the negative impact is indiscriminate — impaired business activity and enforced quarantines are producing negative consequences for both strong and weak companies. Alongside the acceleration of market volatility, we have been conducting extreme stress-testing on all of our holdings for heavy pressure on revenue, profit, and cash flow, going beyond the usual EBITDA and leverage metrics.
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