The Compound and Friends

Momentum Stock Slaughterhouse

104 snips
Feb 6, 2026
Guest
John Mowrey
John Mowrey, CIO and portfolio manager at NFJ Investment Group known for leading a value-focused, multi-billion dollar equity platform. He discusses the free fall in software stocks and unusual market dispersion. Conversations cover how value investing has changed, momentum unwind and rotation into cyclicals, and why banks, energy and materials may offer durable opportunities.
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ANECDOTE

From Law Aspirant To Value CIO

  • John Mowrey stumbled into investing via an internship at NFJ after aiming for law school and poor LSAT results.
  • He credits being an outsider for enabling cultural and process changes when he later led the value platform.
INSIGHT

Momentum Bust Creates An 'Anti‑Bubble'

  • A concentrated momentum run in software and AI names has created an 'anti-bubble' where winners are getting sold hard.
  • There's no single near-term proof point to settle whether the re-rating is permanent or overdone.
ADVICE

Don't Bottom-Fish Without a Catalyst

  • Avoid bottom-fishing in momentum-hit names without a clear, time-bound proof point like an FDA decision or earnings catalyst.
  • Wait for fundamental confirmation or identifiable catalysts before committing heavily to beaten-up software names.
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