CUYRF - Palm Harbour Capital Q4 2023 Investor Letter

2024-01-27 12:10:00 ET

Summary

• Palm Harbour Capital LLP is a United Kingdom Limited Liability Partnership based in London. We scour the globe seeking undervalued securities in order to build a unique portfolio.
• The fund was down -4.3% in October and then up +3.96% in November and finished +6.9% in December.
• We are extremely optimistic about our portfolio’s prospects and believe we will reach our compound return aspiration over time.

Dear fellow investors and friends,

During the fourth quarter the fund gained 6.3% gross of fees ¹ . We do not have a stated benchmark in our Key Investor Information Document (KIID) and therefore cannot comment on relative performance. We leave it up to you to decide. We note the above number appears similar to European and global benchmarks. Inception to quarter end return was 50.0% or 8.9% compounded annual return. Our last reported NAV at quarter- end was 15.00 (28/12/2023), +6.8% from the closest reported NAV at the third quarter end of 14.05 (28/09/2023). Our full year return was 13.1% gross of fees ¹ and our NAV return was 12.0% (NAV of 15.00 on 28/12/2023 versus end of 2022 NAV of 13.39 on 29/12/2022). We are extremely optimistic about our portfolio's prospects and believe we will reach our compound return aspiration over time. Our fund's composition is unlike any index, and we are unlikely to perform in a similar manner.

The fourth quarter's performance was quite the opposite of the third quarter, with a weak start and a strong finish. The fund was down -4.3% in October and then up +3.96% in November and finished +6.9% in December. Ostensibly, the market sell-off in October was linked to higher bond yields followed by the market discounting significant cuts in 2024....

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