In the following commentary, Portfolio Managers Dave Ellison and Ryan Kelley discuss the reasons behind the selloff at the end of 2018, the outlook for short-term interest rates, and what they believe is the healthy state of the banking industry going into 2019.
Two key measures of the health of the banking industry have shown significant improvement and could point to continued solid profitability in the Financial sector in 2019 and beyond.
Over the last two decades, the Financials Sector has become much more diverse. Financial companies operating in markets where growth is being driven by new processes and technological innovation have become an important part of the sector, offering investors high growth potential and additional diversification.
Hennessy Financial Funds Managers Dave Ellison and Ryan Kelley discuss recent merger and acquisition trends, the effect of dividends and share buybacks on bank earnings, growth opportunities for diversified financial services companies, and the drivers of revenue and earnings growth for the companies in the Small Cap Financial Fund.
Financial Funds Portfolio Managers Dave Ellison and Ryan Kelley share their thoughts on the current health of the Financial sector. They discuss how rising interest rates and business rationalization are driving bank profitability, and they describe where they are finding opportunities within the sector.
Hennessy Financial Funds Managers Dave Ellison and Ryan Kelley discuss how rising short-term interest rates and deregulation could benefit bank profitability, and they present the investment case for Financials.
Hennessy Financial Funds Managers Dave Ellison and Ryan Kelley discuss how rising rates, deregulation and the Tax Reform bill could benefit the Financial Services sector and companies in the Funds.
Portfolio Managers Dave Ellison and Ryan Kelley describe their investment strategy, which seeks high-quality and well managed Financial Services companies.
With loan demand and lending revenues on the rise, and as the U.S. achieves stronger economic growth and enters a period of higher interest rates, the investment opportunity in the financial services sector appears promising.