APG - Greystone Capital Q2 2024 Letter To Clients
2024-07-30 03:45:00 ET
Summary
- Greystone Capital managed separate accounts with returns ranging from +4.3% to +7.1% in Q2 2024, with a median return of +6.0%.
- Second quarter and year-to-date results compare both unfavorably and favorably to the S&P 500 and Russell 2000 returns of +4.3% and -3.3% during the quarter and +15.2% and +1.7% year-to-date.
- It's worth repeating that there are things to invest in outside of both the Magnificent 7 and major indices, making now an ideal time to allocate to a strategy like ours.
- The letter discusses the importance of trustworthiness in management teams and highlights the top five positions in client portfolios.
Clients and Friends,
During the second quarter of 2024, returns for separate accounts managed by Greystone Capital ranged from +4.3 to +7.1%. The median account return was +6.0%. Year-to-date, the median account return was +6.3%, net of fees. Second quarter and year-to-date results compare both unfavorably and favorably to the S&P 500 and Russell 2000 returns of +4.3% and -3.3% during the quarter and +15.2% and +1.7% year-to-date. Because client portfolios are invested in a concentrated way consisting of small companies mostly outside of the major indices, our returns should typically vary from the returns generated from those indices.
Though I'm not displeased with year-to-date results. They could have been better. Punitive Canadian capital gains tax rules (significantly increasing the tax rate) taking effect this year caused a small sell-off toward the end of the quarter among two of our top five positions, as investors locked in cheaper profits. In addition, I failed to act aggressively enough in certain situations when intra-quarter volatility presented itself. In a short period, some of our positions went from cheap to absurdly cheap. Instead of biting a big chunk, I nibbled. This cost us. When Steph Curry has a wide open three pointer, he doesn't second guess. I will strive to get better at this moving forward....
Greystone Capital Q2 2024 Letter To Clients