CA - GreensKeeper Value Fund Q1 2024 Letter

2024-04-17 08:30:00 ET

Summary

• GreensKeeper is an independent, owner-managed asset management company with a mission is to deliver superior long-term returns to our clients while prudently managing risk and protecting their capital.
• The Value Fund finished the first quarter +10.1% net of fees and expenses.
• In this Scorecard, we discuss how our clients benefit from our experience and the lessons drawn from fairy tales.

Bedtime Stories

The Value Fund finished the first quarter +10.1% net of fees and expenses. The US dollar, a headwind in 2023, strengthened and added about 2.1% to our returns for the quarter. Currency swings tend to even out over time.

We are off to a great start in 2024 and are firmly back in compounding mode.

The Value Fund’s first-quarter performance beat the S&P/TSX (+6.6%), and the DJIA ( DJI , +8.5%) and trailed the S&P500 ( SP500 , SPX, +13.0%). ⁽¹⁾

Expanding price-to-earnings (P/E) ratios accounted for nearly 70% of the market’s rally during the first quarter and now sit well above historical averages. Investors’ appetite for speculation appears to have intensified, with Bitcoin rising +61.5% year-to-date. At GreensKeeper, we remain steadfastly focused on finding high-quality businesses trading at attractive earnings multiples. We have no desire to risk permanent loss of capital on speculative assets.

Our unique equity portfolios at GreensKeeper result from the fusion of ideas from many disciplines, our life experiences, our temperament, and the deep work that goes into applying a consistent value investing process. There is no magic formula....

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