Confronted with valuations that we have never seen before - stocks selling at firesale prices - we have had the courage to buy more of our cheapest names even as they have gotten cheaper. This true contrarian move had already benefitted the funds in the March rebound as the most over sold names have done best. Second we have made an invesetment in "aspirational" names raning from Nordstrom Inc. (JWN) to Tiffany & Co. (TIF) to Sotherby's (BID) - all of which are best in class but absurdly cheap and highly contraversial buys in the midst of a recession. This big decision is anchored in our strong belieft that recessions do not last forever and these companies will not only survive buy thrive in a normalized economy. Third, we are willing to put a stake in the gournd in real estate. Although misunderstood and unloved, Jones Lang Lasalle, Inc. (JLL) and CB Richard Ellis Group, Inc. (CBG) are good stocks in a bad neighborhood.
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