Insights: Notes from the Field

Global Exchanges, E-Brokers and Fin-Tech: Secular and Structural Growth Drivers Abound

We had the opportunity to meet the management of over a dozen global exchanges, e-brokers and fin-tech firms at a recent conference in New York. Global exchanges and e-brokers have benefitted from multiple secular, regulatory and cyclical tailwinds in recent years, which have resulted in strong growth trajectory and robust stock returns. The Hamilton Capital Global Financials Yield ETF (HFY) [1] has ~4% exposure to exchanges and e-brokers,…

Insights from Nashville: Titans of Growth

We recently travelled to Nashville to meet with a small group of Tennessee-based banks, all of which operate in the state capital, and half of which are holdings in the Hamilton Capital Global Bank ETF (ticker: HBG) and the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U). We also had an opportunity to speak with the Nashville Area Chamber of Commerce. It was a great…

U.S. Banks: The Sun’s still shining on Mid-Caps

New York City in May means a lot of traffic, but also beautiful weather and a chance to catch up with a collection of mid-cap banks from across the U.S. in one trip. In all, we sat down with 8 executive teams, primarily from banks operating in the U.S. Sunbelt (i.e., from California to Florida), including 7 owned by the Hamilton Capital U.S. Mid-Cap Financials ETF…

Notes from New York: Cards, Payments and Financial Technology Meetings

We met the management teams of over a dozen payments, cards, exchanges and other related companies in the rapidly growing financial technology sector[1] in New York. The financial technology sector (“Fin-Tech”) is expected to continue to benefit from multiple structural tailwinds including the growth of e-commerce and growing technology adoption. However, high competitive intensity, rapidly evolving consumer preferences and a wide variety of business models (including…

Notes from India: Financials Poised to Benefit from World’s Fastest Growing Economy

We met the management teams of over a dozen Indian banks, insurers and asset managers in the financial capital of Mumbai, India in December. With real GDP growth of over 7% over the past decade, India is one of the largest emerging markets and forecast to be the fastest growing major economy in 2019. Not surprisingly, the management teams we met were very upbeat. Exposure to…

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…

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…

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…

Notes from the Field: “Follow the Sun” / Catching up with U.S. Banks in Phoenix

One of our themes for the U.S. banks is to “follow the sun”, which refers to our emphasis on banks domiciled in the higher population growth states/metropolitan statistical area[1] (“MSAs”). Every single one of the 15 faster growing large MSAs (i.e., those with populations in excess of 1.5 million people) are located in the (sunny) Southeast, Southwest, and West.

Notes from Italy: Economic Recovery and NPL Progress Improving Confidence

We recently traveled to Milan and met with representatives from Italy’s three largest banks. These banks have combined assets of ~€1,800 bln, loans of ~€960 bln, and market caps of ~€85 bln. We also recently traveled to the U.K. and had the opportunity to meet with the 4th and 5th largest Italian banks while there. Despite a challenging 2016 in terms of market returns, the stock…

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