META - Ensemble Capital Management Q1 2024 Letter
2024-04-13 06:10:00 ET
Summary
- Ensemble Capital Management, LLC is based in Burlingame, California, midway between Silicon Valley and San Francisco. The firm offers customized portfolio management and philanthropic solutions with unparalleled client service.
- After outperforming the market handily in the previous quarter, our strategy produced returns in line with the S&P 500 this quarter.
- While the tech sector may seem some days to be one giant bet on Nvidia, we’re pleased to see a much more diversified set of businesses powering the strong appreciation in our own portfolio over the last two quarters.
| The performance of securities mentioned within this letter refers to how the security performed in the market and does not reflect the performance attributed to the core equity portfolio. Please see the chart at the end of letter, which reflects the full list of contributors and detractors based on each security's weighting within the core equity portfolio. For a copy of Ensemble Capital’s equity strategy performance track record, please email a request to info@ensemblecapital.com . Past performance is not an indication of future returns. Please see disclosures on final page. Performance figures with the Ensemble Equity Composite are shown net of fees. The composite's inception date is December 31, 2003 |
The market staged a significant rally in the first quarter of 2024, jumping 10.56%. These gains added to the 11.69% rally seen during the fourth quarter of 2023. After outperforming the market handily in the previous quarter, our strategy produced returns in line with the S&P 500 ( SP500 , SPX ) this quarter.
Any time the market stages a large and rapid rally, at least some investors worry that the market has moved “too far, too fast.” But more often than not, rapid and large market rallies are followed by strong subsequent market performance.
Since the end of World War II, there have been 10 prior periods when the market has rallied for five months in a row and generated a total gain of 20% or more. Each of those instances were followed by additional gains over the following 12 months, with an average one year return of 14%....
Ensemble Capital Management Q1 2024 Letter