Update No. 199 – 23/01/15

Our benchmark was up 3.82% this week. A rise in the benchmark of more than 3% has occurred 8 times since EGP began. We have never before kept up with the market after a 3% or greater rise.

This week was no exception.

We had a decent rise of 0.82%, which I would happily take every single week if it were offered (0.82% each week compounds to 52.9% performance over a year!). Unfortunately, it leaves us once again trailing the benchmark, but with earnings season almost upon us, I am hopeful we have a couple of aces up our sleeve to help us back in front.

The return of some volatility to the markets is actually fairly welcome. Volatile markets are rife with mispricings and we hope to make the most of these if and when we observe them.

I will reprise the table I posted last week, although being less volatile in an up week isn’t profitable as it is in a down week, it does serve to remind us how a motley portfolio of mostly deep value micro-caps is not necessarily any less stable than a benchmark containing 200 ‘Blue-chip stocks’.

Week Ending

ASX200TR

EGP

13/12/2014

-2.2%

-0.6%

20/12/2014

2.3%

0.7%

27/12/2014

1.1%

0.5%

31/12/2014

0.5%

0.7%

9/01/2015

1.0%

0.1%

16/01/2015

-3.0%

0.3%

23/01/2015

3.8%

0.8%

I trust you’ll have a good Australia Day & we shall talk again next week – Tony Hansen 23/01/2015

  

Apr 1st 2011

Jul 1st 2014

Current Price

Current Period

Since Inception

EGP Fund No. 1

1.00000

1.56145

1.58106*1

1.26%

72.50%*2

S&PASX200TR

35632.05

45991.23

47931.05

4.22%

34.52%

EGP Fund No. 1 Pty Ltd. Up by 1.26%, trailing the benchmark by 2.96% since July 1st 2014. Since inception, EGP Fund No. 1 Pty Ltd is Up by 72.50%, leading the benchmark by 37.98% 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