Tag Archives: Results

OUR MAY 2017 RESULTS

Our weighted average return in May was +0.76%, bringing our year-to-date return to +8.2%.

May marks our 16th consecutive month without an average monthly drawdown of over 1.3%. Moreover, during this timeframe, we have only had two months of negative performance (-0.10% in September 2016 and -1.29% in November 2016). This consistency of performance is not attributable to hedging strategies or active volatility management, but to successful asset allocation and choosing good investments.

For quite some time, we have profited greatly from our overweight in technology stocks such as Amazon, Google, Facebook and Netflix. In May, we took profits on many of these positions. As we were in the process of selling, we were quite aware of the fact that we might be selling too early (see our blog). However, there are times that you simply have to say ‘thank you’ and walk away for a while. For many of these stocks nothing has really changed since we were buying them heavily in December, yet all of a sudden, they are now worth 30% more. Recognizing how sentiment can change and to what degree it can propel a stock is a very important component of active investing. Not letting your imagination get away from itself is just as important. It is nice when everyone agrees with you – but it is times like these that you must apply the highest degree of self-critique and suspicion.

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OUR APRIL RESULTS

Our weighted average return in April was +2.23% bringing our YTD return to +7.43% (net of all fees).

Earnings season has started and most of the companies in our portfolios that reported their earnings in April traded up strongly – most notably Amazon Inc. and Alphabet Inc. Both are currently trading at all-time highs, as are the major US stock market indices. We sold Amazon after earnings and thus increased our cash holdings. We might have to buy Amazon shares back at higher prices, but at the time being we prefer to err on the side of caution.

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