Monthly, we update our wholesale investors on what’s happening in the market. Running what’s probably the only late-night trading desk from New Zealand, we’re well-positioned to feel the pulse of the market’s direction.
Thank you to those clients who expressed faith in our defensive strategy last July.
With managed accounts, every portfolio is somewhat different (depending on timing and size). This month, some individual portfolios are up as much as 12.34%.
Often, we are working on acquiring positions now for their potential in 6-to-12 months’ time. And over the longer term — 3 years or more.
This involves extensive research and getting to know a Company and its industry inside out.
We don’t get everything right. But January delivers a reward for some of this work.
Yes, some ice cream after months in the freezer.
For the month of January 2023, we were up 6.73% across the composite portfolio (total aggregate return across all portfolios following the strategy).
Our average annualised return since inception is 21.49% p.a.
Please see our performance chart for more details.
Managed accounts update
The inflation story looks more tameable today. No doubt, the central bankers will keep the cane on display, but I no longer see the red welt marks.
Europe, where we have focus, appears to have avoided recession.
Any US darkness looks to be quite shallow. Personal disposable income there is keeping pace with inflation, which is receding. And with almost 50% of global market capitalisation, America still leads sentiment.
A significant boost was seen today from one of our automakers — jumping 8.4% on ‘unexpectedly positive earnings’.
We are continuing to see value opportunities within a rising market:
- Last year was the time to buy energy and commodity stocks, with one of our high-conviction positions in copper up 52% over the past 6 months.
- This year, we are pivoting toward real estate and other consumer sectors where we see discounted prices, oversold situations, defensive assets and recovery opportunities.
- For those with cash balances still being deployed, we are pleased to advise that our broker is now paying interest on these funds (all currencies).
Finally, this year, we will be capping the number of accounts we take on to ensure we can offer the best possible service.
If you have an existing account with us, it remains a good time to add funds so you can take advantage of all opportunities the market presents.
Editor, Wealth Morning
Past performance is not an indicator for future performance. Your actual portfolio will differ from the composite portfolio mentioned. The information contained in this document does not constitute an offer to sell or a solicitation to buy an investment, nor should it be construed as investment advice. Vistafolio investment services are available to Eligible Investors and Wholesale Investors (not to Retail Investors) as defined in the Financial Markets Conduct Act (2013).
Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.