CVX - Ave Maria Value Fund Q2 2022 Commentary
- Ave Maria Mutual Funds is a U.S. mutual fund family that takes a pro-life and pro-family approach to investing, with a proprietary screening process. We focus on good investment opportunities for the long-term.
- The Ave Maria Value Fund (AVEMX) had a total return of -11.27% for the three months ended June 30, 2022, compared to -15.42%.
- Eventually there will be another bull market, even though it may not look like it now, as investors are currently gripped with fear.
The Ave Maria Value Fund ( AVEMX ) had a total return of -11.27% for the three months ended June 30, 2022, compared to -15.42% for the S&P MidCap 400 ® Index. The returns for the Fund compared to its benchmark as of June 30, 2022:
| Year to Date |
| 1 Yr. |
| 3 Yrs.^ |
| 5 Yrs.^ |
| 10 Yrs.^ |
| Since Inception^* |
| Prospectus Expense Ratio |
| Ave Maria Value Fund |
| -9.59% |
| -7.60% |
| 6.80% |
| 8.14% |
| 7.43% |
| 6.85% |
| 0.97% |
| S&P MidCap 400 ® Index |
| -19.54% |
| -14.64% |
| 6.87% |
| 7.02% |
| 10.90% |
| 8.80% |
| ^ Annualized * Since Inception date is 5-1-2001 |
| Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value are historical and may fluctuate so that redemption value may be worth more or less than the original cost. Current performance may be lower or higher than what is quoted. Call 1-866-AVE-MARIA or visit www.avemariafunds.com for the most current month-end performance. |
The Fund’s recent good relative performance is mainly attributable to strong share price appreciation in a handful of companies in the oil and natural gas sectors. In particular, the share prices of Chevron Corporation ( CVX ), Pioneer Natural Resources Company ( PXD ), Schlumberger Limited ( SLB ), and Texas Pacific Land Corporation ( TPL ) all rose more than 20% during the first half of the year, as rising oil and natural gas prices have led to strong growth in sales, earnings, and cash flow for these companies.
The Fund’s five best performing securities in the first half of 2022 were:
| Company |
| Industry |
| YTD Return |
| Pioneer Natural Resources Co. |
| Oil/gas Exploration & Production |
| 29.23% |
| Chevron Corporation |
| Integrated oil/gas |
| 27.68% |
| Haemonetics Corp. ( HAE ) |
| Medical Instruments & Supplies |
| 23.98% |
| Texas Pacific Land Corporation |
| Real Estate/Royalties |
| 21.29% |
| Bowlero Corp. ( BOWL ) |
| Bowling Centers |
| 20.82% |
The Fund’s five worst performing securities in the first half of 2022 were:
| Company |
| Industry |
| YTD Return |
| Purple Innovation, Inc. ( PRPL ) |
| Consumer Products |
| -76.60% |
| eDreams ODIGEO ADR ( EDDRF ) |
| Travel Services |
| -50.91% |
| YETI Holdings, Inc. ( YETI ) |
| Consumer Products |
| -38.15% |
| A.O. Smith Corporation ( AOS ) |
| Specialty Machinery |
| -35.78% |
| Mirion Technologies, Inc. ( MIR ) |
| Radiation Detection/Measurement |
| -34.17% |
During the second quarter of 2022, four stocks were eliminated from the portfolio: Change Healthcare, Inc. ( CHNG , Health Information Services), KKR & Co. ( KKR , Asset Management), Lamar Advertising Company ( LAMR , Specialty REIT), and Watsco, Inc. ( WSO , Industrial Distribution). These holdings were liquidated as their share prices reached or exceeded our estimate of intrinsic value.
The sale proceeds were redeployed into more attractive opportunities in two new positions: Chesapeake Energy Corporation ( CHK , Oil & Natural Gas Exploration & Production) and The St. Joe Company ( JOE , Real Estate). We also added to several existing holdings in the Fund, as their share prices declined to more attractive levels.
It's difficult to imagine the second half of 2022 providing as much anxiety for stock and bond investors as did the first half. Eventually there will be another bull market, even though it may not look like it now, as investors are currently gripped with fear. When economic prospects are bleak and pessimism is rampant, the future returns from equity investments can be substantial.
Periods of extreme uncertainty often create opportunities for outsized future investment gains by enabling the purchase of great companies at bargain prices. That’s the essence of value investing.
Thank you for your investment in the Ave Maria Value Fund.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
For further details see:
Ave Maria Value Fund Q2 2022 Commentary