Wayman Value Investing March 2024 Portfolio

Take a look at our current holdings

March 2024 Outlook

The 2024 stock market rally has gathered momentum as investors weigh the latest economic data, pondering whether it will prompt the Federal Reserve to delay its anticipated interest rate cuts. With the S&P 500 notching a 5.34% gain in February and a year-to-date return of 7.66%, optimism is growing regarding the Fed's ability to orchestrate a soft landing for the U.S. economy. Robust fourth-quarter earnings performances have exceeded expectations, demonstrating companies' adeptness at navigating escalating costs and interest rates.

Inflation and interest rates will remain focal points in March. The Federal Open Market Committee (FOMC) chose to maintain interest rates in January, with expectations leaning toward the continuation of this stance at the upcoming March meeting. However, the possibility of rate cuts looms, contingent upon greater confidence in declining inflation, according to the minutes from the FOMC's January meeting.

Mixed signals have characterized the inflation landscape, with the Consumer Price Index (CPI) surpassing estimates in January, while the Personal Consumption Expenditures (PCE) price index moderated slightly. Housing costs remain a significant driver of CPI inflation.

Despite inflationary pressures, the U.S. labor market continues to exhibit strength, evidenced by consecutive months of solid job creation and wage growth. Federal Reserve Chair Jerome Powell acknowledged the potential impact of monetary tightening but emphasized the need for confidence in inflation management before considering rate cuts.

Amidst economic uncertainty, the S&P 500 surged to new all-time highs. Companies reported a second consecutive quarter of year-over-year earnings growth in the fourth quarter of 2023, while U.S. GDP expanded by an impressive 3.2%. Notably, the technology sector led the charge, with AI-focused companies like Nvidia reporting exceptional revenue growth.

User Guide - Tracking the Spreads

What are spreads, and why should you care? I believe that tracking spreads is essential for making informed investment decisions. Each month I categorize stocks into tiers based on the spread between their calculated value and market value.

Here’s how it works:

STASH: This tier includes stocks with the largest spreads. These are the hidden gems that offer significant potential upside. Based on my valuation, now is the perfect time to capitalize on their undervalued status.

GATHER: Stocks in this tier have a substantial spread, but not as significant as those in the Stash tier. They still offer attractive opportunities for investment, and I recommend considering them for your portfolio.

STORE: The Store tier consists of stocks with modest or tightening spreads. While they may not have as much potential for immediate growth, they still hold value and can contribute to a balanced portfolio. Wayman holds these stocks, but I am not actively buying additional shares this month.

CACHE: In this tier, stocks have narrow or no spreads, indicating that their market value aligns closely with Wayman’s calculated value. It may be time to consider exiting positions in these stocks and reallocating your resources.

Categorizing stocks based on spreads helps you identify stocks with the greatest potential for growth. I believe in capturing maximum upside while minimizing potential losses, and Wayman’s tiered system allows you to prioritize your investment decisions.

Model Allocation

For the purpose of third-party portfolio tracking and validation we use the following model portfolio allocation:

• 65% invested in Stash tier stocks

• 30% invested in Gather tier stocks

• 5% invested in Store tier stocks

The Wayman portfolio is tracked and audited by Hulbert Ratings, which has been rigorously tracking the real-world performance of investment advisory newsletters for over 40 years. You can follow our performance here.

Wayman Value Investing Portfolio - March 2024

STASH

• APAM - Artisan Partners Asset Management

• BERY - Berry Global Group

• OBDC - Blue Owl Capital Corporation

• CE - Celanese

• CNC - Centene

• CVS - CVS Health

• FOX - Fox Corporation

• JPM - JPMorgan Chase & Co.

• MTZ - MasTec

• MCK - McKesson

• PATK - Patrick Industries

• SAH - Sonic Automotive

• SYF - Synchrony Financial

• TMHC - Taylor Morrison Home Corporation

• GS - The Goldman Sachs Group

• TSN - Tyson Foods

• VCTR - Victory Capital Holdings

GATHER

• ASO - Academy Sports and Outdoors

• AXP - American Express Company

• ATKR - Atkore

• CAH - Cardinal Health

• CORT - Corcept Therapeutics

• EVR - Evercore

• GILD - Gilead Sciences

• GL - Globe Life

• GEF - Greif

• KBH - KB Home

• LAD - Lithia Motors

• PRGS - Progress Software Corporation

• SF - Stifel Financial

• TROW - T. Rowe Price Group

• ALL - The Allstate Corporation

• HIG - The Hartford Financial Services Group

• THO - Thor Industries

• TRV - The Travelers Companies

• TPH - Tri Pointe Homes

• TOL - Toll Brothers

• WGO - Winnebago Industries

• YELP - Yelp

STORE

• ABBV - AbbVie

• ALSN - Allison Transmission Holdings

• ARCB - ArcBest

• BLDR - Builders FirstSource

• CACI - CACI International

• CTSH - Cognizant Technology Solutions

• EXPE - Expedia Group

• FLT - FLEETCOR Technologies

• HLI - Houlihan Lokey

• KNSL - Kinsale Capital Group

• LEN - Lennar Corporation

• OC - Owens Corning

• CI - The Cigna Group

• PGR - The Progressive Corporation

• SAIC - Science Application International Corporation

• SFM - Sprouts Farmers Market

• UHS - Universal Health Services

• URBN - Urban Outfitters

CACHE

• CENT - Central Garden & Pet Company (Sell Recommended Mar. 8, 2024)