NOW - Ensemble Capital Management Q4 2023 Letter
2024-01-24 07:35:00 ET
Summary
- Ensemble Capital Management builds focused investment portfolios to help you preserve your success and enhance your future. Serving clients with assets ranging from about $3 million to $250+ million, Ensemble offers a high level of personalized service to individuals, families, trusts, foundations and nonprofits.
- For the full year, our strategy was up 23.19% vs the S&P 500 up 26.29%.
- The significant improvement of our strategy’s performance since mid-October was rooted in strong corporate results reported by our portfolio holdings and a dramatic shift in the economic outlook.
The fourth quarter saw strong absolute and relative performance in our portfolio. In the quarter our strategy was up 16.05% while the S&P 500 ( SP500 , SPX ) appreciated 11.69%. For the full year, our strategy was up 23.19% vs the S&P 500 up 26.29%. While we trailed the market, all of our underperformance was due to our investment in First Republic, which we exited in March. Excluding our investment in First Republic, our strategy was up approximately 32.7%, besting the S&P 500 by over 6%.
| 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 |
Notably, we underperformed during the first few weeks of the quarter and then saw a sharp positive reversal as earnings season kicked off and inflation data began to show broad based improvement. From October 18 th , the date our first portfolio holding reported earnings, to the end of the year, our strategy was up 18.84% vs the S&P 500 up 10.92% [based on a representative account from within our performance composite]....
Ensemble Capital Management Q4 2023 Letter