April was a very good month for us, up almost 11%. Even better we managed to outpace the S&P's 8.3% monthly gain despite the fact that we were 30% cash at the beginning of the month. To give a recap of the year, our outperformance is mainly due to being underinvested in Jan/Feb and then having been fortunate enough to start buying in earnest during the March lows. Most of our picks (save RX) have worked, and they have worked very well. Unfortunately stock levels have rallied so much that it feels as if the easy money has been made. It may be that absurdly cheap (trading below asset value) opportunities like COT are no longer widely available so we are now looking at opportunities like MSFT or ETR where the market is either underestimating the earnings or the deserved multiple. I think this marks a shift from value based style to GARP (growth at reasonable price). Stay tuned.
No comments:
Post a Comment