October 24, 2016

Food Safety: Is Whole Foods Prepared?

On October 20, the Detroit Health Department announced an investigation into two cases of Hepatitis A potentially linked to Whole Foods’ stores. Whole Foods contacted the Detroit Health Department to report one of the cases, while the second case has not been definitively linked to Whole Foods. While we view the reporting of this incident to health officials as positive, we have concerns about the grocery chain’s food safety preparedness given its exposure to prepared/ready-to-eat food and its lack of food safety disclosure.

October 14, 2016

Poultry Antibiotics in Emerging Markets: Should We Rethink Growth?

Recent survey results indicate a move away from antibiotics in emerging market poultry production. Our read of the survey results is that investors should be cautious assuming that growth in emerging market poultry production will translate into similar growth in medicated feed additives.

October 14, 2016

Global Earnings Synthesis: Single-Digit Earnings Gains in 2017 Could Imply a Single-Digit Gain in Equity Markets

Consensus estimates for 2017 seem overly optimistic; a single-digit gain in 2017 EPS seems more plausible.

October 6, 2016

Regional and Sector Strategy Monthly Update: October 2016

Sector strategy neutral, regional strategy neutral to negative, consistent with our broader concern about the equity outlook.

September 29, 2016

Evolving Lifecycles in an ESG Materiality Matrix

For most sectors, the likelihood of adverse ESG events and their potential financial impacts evolve through a lifecycle. ESG lifecycles determine the time it takes for a sustainability issue to become relevant to a sector as well as the magnitude of the financial impact. We believe the ability to anticipate ESG lifecycles can enhance the investment decision-making process.

September 26, 2016

Antibiotics and Animal Health: Recent Data Points Highlight an Accelerating Move

US markets moving away from antibiotics; our thesis remains intact. In our October 5, 2015, report Antibiotics and Animal Health: Value-Chain Implications in the US, we posited that consumer demand could push food supply chain companies to phase out antibiotics beyond the level required by FDA guidelines. We are seeing this play out as a… Read more »

September 7, 2016

Women in an Automated World

Increasing automation will change the composition of the US workforce. Women face greater risk of job loss due to computerization, and “lower risk” jobs typically dominated by women pay less than low risk male-dominated jobs.

September 7, 2016

Sector and Regional Strategy Monthly Update: September

We maintain a cautious sector strategy, with most sectors experiencing earnings estimate reductions. Our regional strategy is also selective.

August 8, 2016

Sector and Regional Strategy: Monthly Update – August

An even more cautious sector strategy; only two regions currently Overweight.

August 3, 2016

A Video Interview with BlackRock’s Edkins on “The Shareholder Alignment Frontier” (SAF)

We are pleased to share a recent video interview with Blackrock’s Michelle Edkins and Cornerstone’s John Wilson in which we discuss the value of the “Shareholder Alignment Frontier TM (SAF).” The SAF is a tool inside Cornerstone’s proprietary framework which was specifically developed to help companies make the business case for improved stakeholder relationships through shareholder engagement thus building value for the long term