October 2015 Letter
Our last newsletter discussed the severe drought conditions in California, history of the state’s water situation, infrastructure needs, and the possibility of significant rainfall in the latter part of the year. Forecasters are still anticipating significant rainfall from the El Nino conditions in the Pacific Ocean. We have received a few sprinkles so far, but remain in drought conditions so we hope you benefitted from some of the water conservation websites that were listed.
In this quarter’s newsletter, we touch upon the challenges that satellite and cable providers are having in order to retain subscribers. There has been a shift by consumers to “cut the cord” or to order a “skinny bundle” of programming rather than paying for 500 channels.
Traditional cable and satellite providers are now competing against streaming content providers such as Netflix, Amazon Prime, Hulu, and even YouTube. Existing business models are being challenged and we continue to seek opportunities to take advantage of these changes.
We are pleased to announce that Ms. Cecilia Chen has joined Covington as Senior Vice President and Portfolio Manager. She has over 22 years of investment management experience and is joining us from City National Rochdale. Cecilia can be reached at 213 629-7530 or email@example.com.
We wish you the best as the summer heat transitions to the crispness of fall. Let us know if you have any questions or comments.