We managed to take only a small loss in a week where the market was down quite a bit.
Such weeks do very little for your wealth as an investor in EGP, but they are nice for the ego of your fund manager, as the shortfall in our FY15 performance is reduced.
For those of you that don’t know me well, I am insanely competitive. The latest target of my competitive spirit is a ‘Concept 2’ rowing machine in my gym, where I am trying to break a 1 minute and 24.4 second 500m gym record. I am quite determined the record is going down tomorrow morning. I do love to set goals and then beat them; it is truly one of life’s great joys.
Although I remain pragmatic about any periods of underperformance, rest assured I do not like it. I recognise and accept that the market will periodically heat up in areas where I think the valuations are unjustified, and if we are not in those areas (and I will always try not to be in areas of unjustified overvaluation!), we may well lag.
A number of high-yielding large cap stocks have had price rises that are not fully justified by the change in their business fundamentals. Many of these stocks have gotten away with growing their dividends faster than their earnings. Such behaviour cannot go on indefinitely.
The difference is of course, in a race against a timer, or against a physical goal, a little extra effort can get you there. The difference in the market is you do not know when the efforts will pay off.
Rest assured, I remain laser focused on finding mispriced securities to add to the long term value of your EGP holding. Unlike my efforts on the rowing machine tomorrow morn, where I will do everything in my power to deliver 500m in under 1m 24s. I cannot tell when my analytic efforts will pay off, but I am quite confident they will. Eventually – Tony Hansen 17/04/2015
|
|
Apr 1st 2011 |
Jul 1st 2014 |
Current Price |
Since July 1st 2014 |
Since Inception |
|
EGP Fund No. 1 |
1.00000 |
1.56145 |
1.67147*1 |
7.05% |
82.37%*2 |
|
35632.05 |
45991.23 |
51896.02 |
12.84% |
45.64% |
EGP Fund No. 1 Pty Ltd. Up by 7.05%, trailing the benchmark by 5.79% since July 1st 2014. Since inception, EGP Fund No. 1 Pty Ltd is Up by 82.37%, leading the benchmark by % all-time (April 1st 2011).
*1 after 31May 2013 dividend of 2.333 cents per share plus 1.000 cent per share Franking Credit & 31 May 2014 Dividend of 7.000 cents per share plus 3.000 cent per share Franking Credit
*2 calculated based on dividends reinvested
