CSCO - Patient Capital Management Q2 2024 Commentary

2024-07-18 12:00:00 ET

Summary

• Generally, the best investments begin in a state of obscurity, neglect or disdain.
• We see strong demand and high expectations for quality compounders, AI and technology.
• Opportunity Equity declined 1.9% net of fees in the quarter, taking our year-to-date return to 9.6% net of fees, a respectable albeit lagging 6-month return.
• We’ve long thought an AI bubble was possible: I’d say we’re there, though it may still be early.

By Samantha McLemore

"It was the best of times, it was the worst of times…"

"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way. . . ." A Tale of Two Cities , Charles Dickens

I attended a refreshing value investing conference, Value x Vail, in June. Refreshing because there were true value investors, a dying breed, pitching some ugly and beaten-up value stocks. A breath of fresh air in a quality-compounder crazed environment. It took me back to my earliest days in the industry when the best investors were those with the heartiest guts of steel, best able to stomach the torment of a reviled but promising opportunity....

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