A popular narrative, for many investors, has been that good ideas are becoming harder to find as the current bull market grinds higher. Patrick Hodgens, Portfolio Manager at Firetrail Investments, doesn’t subscribe to this view and says the latest reporting season has provided them seven or eight fresh ideas. He says one advantage of being able invest both long and short is that you can own companies with strong earnings and short those that are likely to disappoint.
“There’s always an abundant amount of opportunity. You know companies significantly overreacted and underreacted to news through the results season.”
In this video, Hodgens provides an example of one stock where he believes the market has overreacted, providing his team with a rare opportunity to invest in a quality business.
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