Brandes has always sought to be a disciplined bottom-up investor that undertakes diligent quantitative and qualitative research to uncover companies with attractive long-term potential. That said, and while we do not leverage macro themes, we continuously monitor the operating environments of our investments. Seismic developments in any given sector—so-called black swan upheavals—that have a ripple effect on other sector members deserve our attention and they get it. However, our interest does not focus exclusively on negative implications for our holdings. Nor does it necessarily reflect a defensive viewpoint because Brandes has confidently sought opportunities others may shy away from. Accordingly, we believe volatility is often an ally of our approach because it can skew perceptions and valuations, resulting in potential mispricings that may become promising investments.
Source: Recent U.S. Bank Failures: Brandes’ View, May 8, 2023. (Podcast)
08 May 2023
Michael Hutchens is a Director, Investments Group and a Senior Analyst on the Financial Institutions Research Team. He is a member of the Small-Mid Cap Investment Committee and the All-Cap Investment Committee. Mr. Hutchens is a limited partner of the firm’s parent company. Before joining Brandes, he was a Bank examiner with the Federal Reserve System. Mr. Hutchens earned his MBA with a concentration in finance from Columbia Business School and his BS in business with a concentration in finance from Indiana University. His experience began in 1994 and he joined Brandes Investment Partners in 2001.