APG - Greystone Capital Q4 2023 Letter To Clients

2024-02-03 07:43:21 ET

Summary

• Greystone Capital is a long only, equity-focused Registered Investment Adviser located in West Chester, PA. The firm utilizes a fundamental research process focused on identifying mispriced small and microcap securities in order to build a concentrated portfolio of high conviction investments.
• Greystone Capital's separate accounts had returns ranging from +16.4% to +20.4% in Q4 2023, with a median return of +18.1% for the year.
• The strategy has outperformed the S&P 500 and Russell 2000 by an annualized +6.9% and +12.0% per year since inception in Q4 2019.
• The article highlights the advantages of investing in small and microcap companies and the potential for outperformance in these areas of the market.

Dear Clients and Friends,

During the fourth quarter of 2023, returns for separate accounts managed by Greystone Capital ranged from +16.4% to +20.4%. The median account return was +18.1%, net of fees. The median account return for the full year 2023 was +11.8%, net of fees. Since inception in Q4 2019, an account opened with Greystone has returned a cumulative +114.8% or +21.1% per year, net of fees. During this period, our strategy has outperformed both the S&P 500 (SP500) (SPX) and the Russell 2000 (RTY) by an annualized +6.9% and +12.0% per year, while also posting significant cumulative outperformance against both benchmarks.

Our fourth quarter and FY2023 results compare favorably and unfavorably to the S&P 500 and Russell 2000 returns of +11.7% and +14.0% during the quarter and +26.3% and +16.9% for the full year. 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....

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