2024-02-11 09:35:00 ET
Summary
- GreenWood Investors is a bottom-up, mostly long, concentrated and constructivist global investment firm focused on areas of pessimism, structural inefficiencies and low competition.
- In terms of 2023 returns, our separate accounts, which remain open to any investor, returned 28.0%.
- Our top 6 positions, accounting for 74% of our accounts & funds’ net exposure, grew FCF per share by 39.7% in 2023 using consensus estimates.
- While our portfolio’s mark-to-emotion returns have outpaced broader indexes, we have not borrowed from the future like the indices have, and we believe this bodes well for our forward-looking performance.
Dear GreenWood Investor:
Fundamental Momentum
“Opportunities multiply as they are seized.” —Sun Tzu
We are pleased to report a year of good progress for our investors, as our collaborative and constructive engagements added considerable value to our performance. Even still, we are not satisfied. We remain hungry and curious. We’re looking for more businesses to bring our active approach to. In terms of 2023 returns, our separate accounts, which remain open to any investor, returned 28.0%. For fund returns, please see our Results page to check on that performance, which was modestly better than this result.
Importantly, this was achieved without any of the exposure to overvalued large technology companies which generated more than half of our equity benchmark’s returns this past year. Furthermore, much of our portfolio is outside of the US, and even in investor-despised Europe, which has just hit an unprecedented valuation discount relative to the US, where investors remain enamored with the most recent fad in Silicon Valley.
Exhibit 1: Valuation Divergence (Relative Forward PE) Between US & EU At Historical Peak ...
Read the full article on Seeking Alpha
For further details see:
GreenWood Investors Year End 2023 Letter