VWAPY - Kinsman Oak Q3 2020 Letter To Partners

• During the third quarter of 2020, the Kinsman Oak Equity Fund returned 1.2% net of fees versus 8.5% for the S&P 500 Index. (Inception date of the Kinsman Oak Equity Fund was Q2 2020).
• Once again, cash drag weighed down investment returns for the quarter. The Fund did not have any meaningful detractors to performance but, due to low net exposure, we did not participate fully to the upside.
• Stocks are at the upper echelons of historical valuations while the real economy is still relatively close to its trough. The combination means an exceedingly unfavourable prospective risk-reward ratio, in our view.
• The Fund is conservatively positioned as we were reluctant to chase what we view as a liquidity bubble higher. That said, we are finding opportunities we consider cheap.

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