Our weighted average return in June was +0.23%, bringing our year-to-date return to +8.49%.
Last month we mentioned that we saw weakness in tech stocks, and in June, we saw continued volatility in this sector. Thankfully, our rotation into different sectors helped offset losses on our remaining tech exposure.
One outperformer of note was Nike Inc. Nike shares have struggled for the past year-and-a-half, but they appreciated by 11.34% in June due to better than expected results and positive guidance going forward. Nike is a phenomenal brand that continues to invest in cutting-edge technology, yet it was trading at a significant discount to its peers. It had also been caught up in the widespread selloff of retail stocks. We were buyers of Nike shares on price weakness in May. When quality companies sell off, you sometimes have to ask yourself “will this be trading higher in five years?” Our answer was an emphatic “yes”. Moreover, 55% of Nike’s revenues come from outside the US, which means that their foreign revenues can be a tailwind in a weakening USD environment.