We saw
Exceptional opportunities April 2020.... Acted, Accomplished +48% to June '21
Focused approach Active management Risk Management
+10.48% YTD June 30, 2021 is near our target for low-risk, Absolute returns
Same as we did when launched Strategy March 31, ’09 and deployed Cash for KIA
More Selective now, +48% Mar '20-Jun'21 now leaves less opportunity than all of 2020
July '21 Conservation mode.... Security Selection + Conserve Capital + Income
Approach
Total Return Oriented
Yield as an important component
Macro View, Top Down process
Focus on disproportionate reward
Controlled risk, attractive reward
We Buy when attractive fundamentals + technical “buy”
We Protect or sell when investment is “rich” relative to risk
What is Different May 7 2021 vs. March 25, 2020
Continue to Avoid EM exposure
Continue to Position for the “new” global economy
Underweight Banks
Reduced cash as Late March & April '21 presented attractive levels
Continue to Barbell Yield and Growth
Largest Energy Holding, Chevron (+33% from Mar 25, 2020)
What is Different April, 2020 vs. March 31, 2009
Securities that are the Same as we held Launch March 31, 2009 when we saw similar opportunity
Capital Growth focus
Overweight USD Equity
Include AAPL | Fortress Balance sheet, New economy Growth
Include PGF | Financials are too big to fail… 6% yield compounds monthly
Include Energy | Oil March ‘20 below the depth of the Great Recession
Include PLD | REITS posed for more losses, Industrial safer than 4 other sectors
Strategy View March 31, 2009
View 2009
Strategy View 12 of the 13 selected. March 25 to May 8, 2020
Focused, Yield + Growth
Strategy View Yield was cheap Mar 2009. KO vs. PGF
Strategy View Yield was cheap Mar 2009. KO vs PGF
Strategy View Energy was cheap KO and S&P vs. CVX +33%
Managing Risk is the Key
Risk Abating Upon Medical results
Focus Portfolio Investment
Focus Selection
Focus – Principal Investment Strategies
Invest in public equities, public funds, options and ETF’s.
Invest primarily in U.S. common stocks.
Concentrating portfolio opportunities in non-diversified opportunities when opportunities are uncovered, broad market ETF’s when opportunities are broad.
Top down approach to focus on industries and sectors where economic conditions or valuation has opened an opportunity for return prospects well in excess broad markets.
Non-traditional approach to cash
Filter – Focus on Sector and Company Opportunities
Attractive fundamentals
Excellent prospects
Strong franchise or intellectual property
Proven management
Consistent cash flow
Industries where the near term macro economic drivers will add to investment returns
Strong balance sheet, not dependent on high leverage
Pathway to best possible Success Selection & Risk Management
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