Investors who view continuing low interest rates as an all-clear sign for heavily leveraged companies may want to look at the chart below before breaking out the champagne. It shows that at the beginning of the year, the percentage of money-losing companies that make up in the Russell 2000® Growth Index was approaching levels not seen since the dotcom bubble. Thanks to a slowing economy and the efforts of the Federal Reserve to pump money into an economy rocked by COVID-19, the situation has become even more dire.
Nasgovitz is CEO and Portfolio Manager of the Opportunistic Value Equity Strategy, as well as the Mid Cap Value Fund, the Value Fund, and their corresponding Mid Cap Value and Small Cap Value Strategies. He also is President and Director of Heartland Funds. He has 20 years of industry experience, 16 at Heartland.
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