Value Investors Can Benefit from Breakdowns in the Private-Equity Model Avoiding the Big Picture to Focus on Recent Experiences

Maintain a View of the Economy and Overall Market at All Times

Virtually all studies show that about 60% of the return and volatility of the average common stock is determined by the movement in the aggregate stock market. So while we’re bottom-up stock pickers, we think it’s important to have a view of the economy and the overall market to help us determine which industries and sectors to emphasize.