Every quarter, Canterbury's Outsourced CIO committee shares their observations of the market that impact the management of our discretionary portfolios in the Canterbury Outsourced CIO Commentary.
At Canterbury, clients often ask us to provide our outlook for the markets over upcoming quarters. We have learned over the years, that the future, in the short or long run, is rarely the present extrapolated. The last three years alone would have proved us wrong repeatedly. In January 2020, there was great optimism for both Silicon Valley as well as China. That is where the action was, as global “Big Tech” from Alphabet to Alibaba seemed more powerful than major governments. The onset of a global pandemic served only to fuel these growth companies that enabled enterprises to operate with a virtual workforce.
Three years later, there have been over 100,000 layoffs across technology firms in 2022, with forecasts for further headcount cuts in the coming year. The Nasdaq-100 Index, representing the largest non-financial companies listed on the Nasdaq exchange, is down 33% for the year, with its top holdings down meaningfully: Apple (-26.8%). Amazon (-49.6%), TSLA (-65%), Meta (-64%), and MSFT (-29%). The Federal Reserve has gone from fighting deflation to making it loud and clear that they will pound inflation to submission, whether the market (or the economy) likes it or not. Higher rates have pushed down the valuation of high growth companies. However, these global franchises continue to dominate the market, taking advantage of the market pullback to make strategic acquisitions.
Access the Canterbury Outsourced CIO: Fourth Quarter 2022 Commentary
Ms. Parekh is a member of the Board of Directors, a shareholder of Canterbury, and directs the Canterbury Outsourced CIO platform, which caters to institutions and private clients who wish to outsource day-to-day management of their portfolios to Canterbury. In that role, Ms. Parekh is the chair of the Canterbury Outsourced CIO Committee and a member of each of the firm’s five Manager Research Committees. She joined Canterbury in 1996 as the manager of analytics with responsibility for directing the firm’s account analysts and client services group. In that role, Ms. Parekh secured many of the asset allocation modeling and research software tools we use today. In 2001, she became the director of manager research, responsible for oversight of all manager, fund, and product research; maintenance of Canterbury’s proprietary research database; and chairing the Investment Manager Research Committee. Ms. Parekh graduated from the University of Hong Kong with a Bachelor of Arts in economics. She completed her Master of Business Administration at Shenandoah University.