Recovery Strategy

This strategy seeks companies that have been especially impacted by COVID-19 but which we believe are well-positioned to recover over the next two years. The strategy started with U.S. stocks that fell significantly from their previous share price peak during the pandemic and are consumer or business-related companies serving key demand segments.

Companies are screened based on credit quality and potential access to funds available through the Coronavirus Aid, Relief and Economic Securities (CARES) Act. The list is further narrowed based on corporate size, capital strength, long-term earnings improvement potential and analyst coverage.

  • As COVID-related government restrictions are eased, we think consumers and businesses will gradually return to previous patterns of demand and consumption.
  • Companies in the portfolio could potentially return to business activities and previous earnings cycles as the economy recovers.
  • These companies serve key consumer demand segments such as transportation, hotels, restaurants, airlines, travel, casinos, leisure, specialty retail, gasoline, insurance, housing and financials and/or related consumer companies.
The U.S. is actively on the recovery path—and getting back on track urgently

How to invest

Pence Capital Management develops investment strategies for distributors and model portfolios for advisors. To invest in Pence Capital Management Strategies, please contact your broker or advisor.

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