Commentary: HBG

Notes from Chicago: Opinions on the Canadian Banks (part 1)

We recently met with the top management of four Chicago-headquartered U.S. mid-cap banks (see related October 9, 2018 “Notes from Chicago – Three Takeaways from the Windy City (Part 2)”). Given their large presence in this giant MSA, it was not surprising that the Canadian banks and their speculated U.S. expansion plans were a frequent discussion topic. Chicago is the single most important market to Canadian…

Notes from Chicago: 3 Takeaways from the Windy City (part 2)

We recently met the top management of four U.S. mid-cap banks headquartered in Chicago (see related October 10, 2018 “Notes from Chicago – What the Banks Said About the Canadian Banks/M&A (Part 1)”). Chicago is the third largest U.S. MSAwith real GDP of US$583 billion and a population of 9.6 million. Although large, the Chicago MSA has one of the least favourable demographic profiles among the “large…

HBG/HFY Outperforming Almost Everything (in a Sea of Red)

Despite a very challenging year for global financials/banks, the Hamilton Capital Global Bank ETF (HBG) and Hamilton Capital Global Financials Yield ETF (HFY) are both outperforming their benchmarks, as well as virtually all relevant country indices year-to-date. In fact, with concerns over global trade, emerging market volatility, European politics, and the shape of the yield curve, virtually all relevant global financials and bank indices are down…

HBG: Up ~4% YTD Despite Global Sea of Red

U.S. Bank Portfolio Outgrows U.S. Bank Peers for the 9th Consecutive Quarter Hamilton Capital Global Bank ETF (HBG) continues to enjoy material outperformance with comparatively low drawdowns. Since inception, it has reported a 17% annualized return and is 20.3% ahead of the global bank index (in CAD). Year-to-date, HBG is up 3.9% which compares to a decline in the global bank index of ~2% (in CAD)…

Notes from Texas: Lone Star Shines Bright

On a recent investor roadshow to Texas, we had the opportunity to meet the top management of ten Texas headquartered U.S. banks. The Texas economy is booming (annualized real GDP grew +5.2% yoy in Q4/17 making it the fastest growing economy of all 50 U.S. states) driven by a robust recovery in the energy sector and strong labor market trends in an increasingly diversified economy. With…

Global Exchanges and E-Brokers: favourable secular and cyclical themes

We met the management of over a dozen global exchanges and e-brokers at a recent conference in New York. Global exchanges and e-brokers have benefitted from secular, regulatory and cyclical tailwinds over the past decade, which has resulted in robust earnings growth and driven strong stock outperformance.  The Hamilton Capital Global Financials Yield ETF (HFY) which is outperforming its benchmark by 270 bps since inception and has a…

U.S. Banks: 3 Deals in 3 Weeks. Will M&A Accelerate Post-Dodd-Frank?

Hamilton Capital ETFs continue to benefit from material outperformance and substantial AUM growth. In this note, we discuss U.S. bank M&A and ask the question: will successful passage of the Dodd-Frank rollback bill result in an acceleration of sector consolidation? Last week, on May 24th, the President signed a bipartisan bill rolling back key provisions of the Dodd-Frank Act (named “Economic Growth, Regulatory Relief and Consumer Protection Act”).

Notes from Spain: Improving Backdrop for the Banking Sector

On a recent trip through Madrid, Spain we had the opportunity to speak to most of the publicly traded Spanish banks, as well as the Bank of Spain. The Hamilton Capital Global Bank ETF (HBG) which is outperforming its benchmark by 14.4%, has ~3% exposure to Spanish banks, while the Hamilton Capital Global Financials Yield ETF (HFY), which is outperforming its benchmark by over 6%, has…

HBG’s U.S. Bank Portfolio Posts 39% EPS Growth Y/Y

Hamilton Capital Global Bank ETF (HBG) continues to enjoy material outperformance with comparatively low drawdowns. Since inception, it has reported a 19% annualized return and is 14.4% ahead of the global bank index (in CAD, as of April 30, 2018). One of the main contributors to the strong performance of HBG is the earnings growth of the U.S. bank portfolio. In Q1-18, this portfolio reported yet another…

Canadian Western Bank as a U.S. Mid-Cap Proxy

Canadian Western Bank has achieved highly material long-term outperformance versus its larger peers. In this post, we relate its sizeable outperformance to our preference for U.S. mid-cap banks. In our January 24, 2018 comment, “U.S. Banks: High/Low Growth Areas in One Map (i.e., ‘Follow the Sun’)”, we explained that there are vast demographic differences within the six distinct geographic regions of the United States (five of…

U.S. Banks: Mega-Caps’ Q4 Results in 4 Charts

With reporting season now over, we thought we would offer some key takeaways for the four U.S. mega-cap banks (JPM, C, BAC, WFC). Given that these four firms account for over 33% of the U.S. financials index (S5FINL Index), they have a significant/disproportionate impact on the overall sector’s results and are therefore worth following. In this note, we show operating earnings trends for each bank. As…

HBG’s U.S. Banks Portfolio Posts 19% EPS Growth Y/Y

February 26, 2018 by Hamilton Capital Hamilton Capital Global Bank ETF (HBG), continues to enjoy material outperformance with comparatively low drawdowns. Since inception, it has reported a 21% annualized return and is 10% ahead of the global banks index (in CAD). HBG also had comparatively low drawdowns during the two large macro corrections and outperformed in 19 of the 20 worst days (see exhibit below). One…

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