Update No. 92 – 28/12/12

A positive shortened trading week for both EGP Fund No. 1 Pty Ltd (up about 1.6% to a new all-time high) and for our benchmark (up about 1% to the highest level since the inception of EGP).  There is one shortened trading day left in the period and barring an inexplicable collapse in the value of some EGP holdings, we should finish almost 2% ahead of the benchmark for the preceding 6 month period.  This is approximately in the middle of the 3 – 5% annual outperformance target, but is much better than that when the strength of the market over the preceding 6 months is considered.  I have always said I expect to our outperformance to come in greater measure in flat or negative periods, to best the market when it takes a 17% run in 6 months, we are very pleased with.

A few weeks ago I read this post on a website I frequent called ‘Future Pundit’. I thought then I’d mention it as New Year’s approached as a piece of easily followed advice for readers in the New Year.

Read the article, but the upshot of it is, be sure you are not ‘sad’ when you are allocating capital, as it will lead to poor performance… The linked research shows unhappy people are poor at capital allocation. So, over the next few days, get yourself in a happy place & think about how you are going to plan for your future wealth – Tony Hansen 28/12/12

EGP Fund No. 1 Pty Ltd. Up by 18.84%, leading the benchmark by 1.89% since July 1^st. Since inception, EGP Fund No. 1 Pty Ltd is Up by 22.39%, leading the benchmark by 17.67% all-time (April 1^st 2011).