Syzygy Asset Management

A stock trading at half its former price is not necessarily a bargain. Perhaps its earnings power has halved or its balance sheet can no longer support the business. Maybe its generous dividend is being financed with borrowed money. A low valuation ratio tells us what we are paying relative to one measure of fundamentals. It does not, by itself, tell us what the business is worth or whether those fundamentals will endure.

While the name is new, Syzygy is not. Syzygy, formerly Research Affiliates, will extend our multi-decade sub-advisory relationships in asset allocation and long-only active equities and expand into other active diversification strategies in the coming quarters.