Wayman Value Investing May 2025 Portfolio

Take a look at our current holdings

May 2025 Outlook

Following the post-election euphoria that carried through Q1, we've witnessed what I'd call a healthy dose of reality setting in. The Fed's newly apparent hawkish tilt caught many off guard. After months of signaling rate cuts were on the horizon, persistent core inflation readings and surprisingly robust employment data led to a sharp repricing of rate expectations. The 10-year Treasury yield climbed 42 basis points during April, putting pressure on both growth stocks and supposed "safety trades" alike. This serves as a vivid reminder that consensus views are frequently wrong, and excessive comfort with any particular market narrative is usually the precursor to disappointment.

Perhaps most instructive has been watching industry rotation play out. Energy stocks, widely dismissed in recent years amid the renewable transition narrative, emerged as April's best performers amid Middle East tensions and supply constraints. Meanwhile, the consumer discretionary sector - long a market darling - showed signs of strain as several retailers reported inventory buildups and challenged sales forecasts.

In this environment, I continue to emphasize the merit of patience and liquidity. The higher expected returns borne of market corrections can only benefit those positioned to take advantage. While the recent pullback has improved valuations somewhat, we're still operating in a market where euphoria hasn't been fully wrung out. Remember that superior long-term results don't come from buying what's popular, but from recognizing value where others see only risk. The current market rotation may well be providing precisely such opportunities for the disciplined investor willing to look beyond immediate sentiment.

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 - May 2025

STASH

• APAM - Artisan Partners Asset Management

• ARCB - ArcBest

• ASO - Academy Sports and Outdoors

• ATKR - Atkore

• BCC - Boise Cascade Company

• BLDR - Builders FirstSource

• CI - The Cigna Group

• CNC - Centene

• COF - Capital One Financial

• CRC - California Resources Corporation

• KBH - KB Home

• LEN - Lennar Corporation

• MCK - McKesson

• MHO - M/I Homes

• OC - Owens Corning

• PATK - Patrick Industries

• SYF - Synchrony Financial

• THO - Thor Industries

• TOL - Toll Brothers

• TPH - Tri Pointe Homes

• WGO - Winnebago Industries

• YELP - Yelp

GATHER

• ATLC - Atlanticus Holdings

• EXPE - Expedia Group

• HIG - The Hartford Financial Services Group

• KNSL - Kinsale Capital Group

• SAIC - Science Application International Corporation

• TMHC - Taylor Morrison Home Corporation

• TROW - T. Rowe Price Group

• TRV - The Travelers Companies

• VCTR - Victory Capital Holdings

• WRB - W. R. Berkley Corporation

STORE

• AIZ - Assurant

• ALL - The Allstate Corporation

• AXP - American Express Company

• CACI - CACI International

• CAH - Cardinal Health

• CE - Celanese

• COR - Cencora

• CTSH - Cognizant Technology Solutions

• CVS - CVS Health

• GEF - Greif

• GL - Globe Life

• JPM - JPMorgan Chase & Co.

• OBDC - Blue Owl Capital Corporation

• PGR - The Progressive Corporation

• PLMR - Palomar Holdings

• SAH - Sonic Automotive