We passed an important milestone this week. The original capital used to start EGP has now been doubled before fees (but after costs).
This first doubling took 1,583 days, 4 years and 4 months exactly, occurring at a rate of about 17.33% annually. Obviously this is the headline rate – after the performance fee is deducted the investors who joined us at inception have only captured 91.58% of the first doubling or about 16.18% annually. I will be working hard to meet the next milestone, which is the doubling of original capital after fees. Only a 4.4% rise to go… I believe I am a better investor now than I was 1,583 days ago, so I am hopeful we will continue to produce sound results.
If you had offered me on the 30th of June 3.18% performance for July, I would have happily accepted it. In the great majority of months, that level of performance would have you well ahead of the indices, 3.18% if achieved in every month would be a very handsome 45.6% annually, so count on the future months being not quite as good as July was.
Unfortunately for us, the index we compare ourselves to is up 6.04% in July, so we trail financial year to date. Those who have been with us for a while will be accustomed to this underperformance when the market is hot, but aware that when the market turns, we usually more than cover any shortfall during weak periods.
Our second largest holding (DDR – Dicker Data) has gone into a trading halt for a capital raising, so depending on how the market takes it, we may see a fall in values next week, but I am relieved to see the extra capital raised to fatten up a skinny balance sheet and believe the extra capital will put them on a good footing. I am still quite confident the best years are in DDR’s windscreen rather than their rear-view mirror. Have a good weekend – Tony Hansen 31/07/2015
|
|
Apr 1st 2011 |
Jul 1st 2015 |
Current Price |
Since July 1st 2015 |
Since Inception |
|
EGP Fund No. 1 |
1.00000 |
1.57872 |
1.62890*1 |
3.18% |
91.58%*2 |
|
37333.23 |
50922.68 |
53995.93 |
6.04% |
44.63% |
EGP Fund No. 1 Pty Ltd. Up by 3.18%, trailing the benchmark by 2.86% since July 1st 2015. Since inception, EGP Fund No. 1 Pty Ltd is Up by 91.58%, leading the benchmark by 46.95% all-time (April 1st 2011).
*1 after a 31 May 2013 dividend of 2.333 cents per share (cps) plus 1.000 cps Franking Credit, a 31 May 2014 Dividend of 7.000 cps plus 3.000 cps Franking Credit and a 31 May 2015 Dividend of 8.6667 cps plus 3.7143 cps Franking Credit
*2 calculated based on dividends reinvested
