We’re being more selective about entry points, CEO says

Key Concepts

• NY's New Era Value ETF (TGLR): An ETF managed by Laughter Tangler Investment, formerly the Equity Income ETF, demonstrating strong performance.
• Selective Stock Entry/Exit Points: A strategy focused on disciplined investing, identifying quality companies, and timing purchases/sales based on market conditions and company fundamentals.
• Falling Knife: A stock experiencing a rapid and significant price decline, requiring caution before investing.
• High-Frequency Trading & Algorithms: The impact of automated trading systems on short-term stock price movements.
• Portfolio Perspective: Evaluating investments based on overall portfolio performance rather than individual stock outcomes.
• Capex Spending: Capital expenditure, investments made by a company to acquire, upgrade, and maintain physical assets.

ETF Performance and Key Holdings

Last year, NY’s New Era Value ETF (TGLR) achieved a return exceeding 20%, outperforming the S&P 500’s return of just over 16%. As of the interview, the ETF was showing a positive return versus the S&P 500’s gain of just under 510 of a percent. Key performers driving this success included Broadcom, Goldman Sachs, and companies within the cybersecurity sector. Investments in industrial stocks, specifically Power Quant Services (PWR) and Emerson Electric, also contributed significantly.

The ETF’s top holdings include Walmart, Lamb Research, Goldman Sachs, American Express, and RTX. Recent additions to the portfolio, made within the past week, include increased positions in GE Vernova, Eaton, Apple, Microsoft, and Palantir. Nancy Tangler described Apple as a “US Treasury…defensive play of technology.”

Stock Selection: Entry and Exit Strategies

Nancy Tangler emphasized the importance of selective entry and exit points, illustrating with examples of Adobe and ServiceNow. Adobe was exited from the portfolio despite initial optimism because management failed to adapt to new technologies, specifically failing to capitalize on AI imagery monetization. The exit occurred at higher levels than the current stock price.

ServiceNow, on the other hand, is led by a highly regarded CEO, Bill McDermott, but the portfolio temporarily stepped aside after the stock experienced a significant decline. The stock was down 27% last year and down 30% this year, despite generating over 20% earnings growth and trading at a multiple of 20 times earnings. Tangler described this situation as a “falling knife,” advising against attempting to catch the bottom. She stressed the importance of allowing the stock to stabilize and potentially show an upward tick before re-entering, acknowledging the influence of high-frequency traders and algorithms.

Portfolio Management Philosophy

Tangler advocates for a holistic portfolio view, noting that even successful overall portfolio performance can include individual stock losses. She illustrated this with a five-stock portfolio that returned 28% last year, despite ServiceNow’s underperformance. Her core principle is that “the investment business is about being mostly right.” She also emphasized the importance of maintaining a broader perspective, noting that the market is still relatively close to record highs.

Market Outlook and Sector Preferences

Tangler anticipates market returns of 10-15-18% for the year, driven by expected earnings growth of 13-15%. She believes this potential is comparable to the 1990s, where five years of above 20% returns were achieved. She highlighted the potential benefits of the “one big beautiful bill act” on consumer spending and corporate investment.

Her sector overweights are technology, industrials, consumer discretionary, and financials, with a focus on “buying the leaders.”

Amazon Investment Thesis

Amazon is identified as a “best idea” for 2026. Tangler believes concerns regarding capital expenditure (capex) spending are overblown, citing Andy Jassy’s experience in inventing cloud computing as evidence of his understanding of necessary investments.

Management Focus

The interview concluded with a point about the importance of evaluating not just the company but also the quality of its management, citing Bill McDermott and Andy Jassy as examples of strong leadership.

Logical Connections

The discussion flows logically from an overview of the ETF’s recent performance to a detailed explanation of the investment strategies employed. The examples of Adobe and ServiceNow serve to illustrate the principles of selective entry and exit points. The market outlook and sector preferences build upon the discussion of individual stock selection, providing a broader context for the portfolio’s positioning.

Notable Quotes

• “Apple…is a US Treasury…defensive play of technology.” – Nancy Tangler
• “The investment business is about being mostly right.” – Nancy Tangler

Synthesis/Conclusion

Nancy Tangler’s investment approach centers on disciplined stock selection, a portfolio-level perspective, and a focus on high-quality management teams. Her strategy emphasizes identifying fundamentally sound companies, timing investments based on market conditions, and avoiding the pitfalls of chasing falling knives. Her optimistic outlook for the market is predicated on continued earnings growth and the potential benefits of recent legislation, with a preference for leading companies in technology, industrials, consumer discretionary, and financial sectors.