People say you don’t really know how good your fund manager is until they’ve guided you through a “Bear Market”. You may not be aware of this, but since inception, EGP has already experienced one Bear Market, and four corrections in total exceeding 10%.
I discovered this in researching some material for an article unrelated to the weekly blog (I have interests outside of my weekly relationship with you dear reader…). The timing of this particular Bear Market was rather predictable; it had a remarkable alignment with the founding of EGP…
EGP took its first funds in March 2011, with an effective launch date of April 1 2011. Predictably enough, the market peaked 10 days later on 11 April 2011 and proceeded to reverse by 20.4% top to bottom (with the bottom being 26 September 2011). This ‘Bear Market’ is rather exceptional for the fact that the market was only in a technical Bear Market for 2 days, 26 September & 4 October 2011. The recovery was fairly swift thereafter.
We only report week-ending figures, and from inception to the lowest reported point, our investors saw the benchmark ASX200 Total Return index decline by 17.42%.
At the same time, EGP had declined by 0.11%. This gave us a 17.31% advantage over the benchmark after only operating for 178 days (less than 6 months). Relative outperformance will not feed your children, but achieving good amounts of it in down markets has proven to be a reliable way to ensure you generate above market returns through the cycle overall.
Our second best (roughly) 6 month period of outperformance was the period from March 20 2015 to 4 September 2015. Over that period, EGP outperformed the benchmark by 16.88% (Benchmark down 11.52%, EGP up by 5.36%). We love a falling market at Eternal Growth Partners.
The blog coinciding with what turned out to be the week-ending low back in 2011 holds up quite well in hindsight. The fund is still 53% owned by women too, though the gentlemen are catching up… – Tony Hansen 25/09/2015
|
|
Apr 1st 2011 |
Jul 1st 2015 |
Current Price |
Since July 1st 2015 |
Since Inception |
|
EGP Fund No. 1 |
1.00000 |
1.57872 |
1.58379*1 |
0.32% |
86.27%*2 |
|
37333.23 |
50922.68 |
48508.98 |
(4.74%) |
29.94% |
EGP Fund No. 1 Pty Ltd. Up by 0.32%, leading the benchmark by 5.06% since July 1st 2015. Since inception, EGP Fund No. 1 Pty Ltd is Up by 86.27%, leading the benchmark by 56.34% 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
