Bumbershoot Holdings 2024 Investor Letter
2025-04-03 11:50:00 ET
Summary
- 2024 was challenging, but Bumbershoot Holdings L.P. achieved a positive gross return of +5.65%, with a cumulative total gross return of +126.8% since inception.
- The fund's strategy focuses on high-quality businesses with durable advantages, emphasizing technology, healthcare, and infrastructure, despite facing setbacks in the agricultural-fertilizer sector.
- The current market environment is driven by momentum and narratives, particularly around AI, which complicates predicting performance based on fundamentals alone.
Dear Partners,
It was shaping up to be a solid year—until December… when we got hit in the face by a two-by-four.
I can now spend the rest of this letter trying to explain away that outcome … that we had over 10+ companies drop more than -15% in the month. That the “market” has become incredibly narrow with a handful of mega-cap stocks & specific sub-sectors driving performance; while market breadth from the other ‘ Marginal 493 ’ lagged considerably. That anything outside the indices has been having a particularly tough stretch for some time. But those would just be excuses.
Or I can say how I really feel… which is that I actually believe we had a solid year—despite the circumstances of our performance. The fund remains invested into a collection of high-quality businesses that continue to perform adeptly from a fundamental perspective, with constructive and durable outlooks.
Which is the entire purpose of Bumbershoot . The goal is to make money… but the process by which to do it is to invest in great businesses with durable advantages at fair valuations. That process is far from broken…
It is important to separate between process and result. This result was not achieved by being dogmatic about profitability & valuation metrics. Quite the opposite… we were in the right places. The problem is not about identifying winners. The difference performance-wise where we ought to be from where we landed was just a handful of decisions-and-omissions.
By Month: | Bumber | S&P 1 | Russell 2 | FTSE 3 | Barclay 4 |
Jan-2024 | -4 .92 % | 1 .59 % | -3 .93 % | -1 .33 % | 0.44 % |
Feb-2024 | 4 .7 5% | 5.1 7 % | 5.52 % | -0.01 % | 1 .94 % |
Mar-2024 | 4 .1 4 % | 3 .1 0% | 3 .39 % | 4 .23 % | 1 .91 % |
Apr-2024 | -3 .1 8% | -4 .1 6 % | -7 .09 % | 2 .41 % | -1 .1 0% |
May -2024 | 8.45% | 4 .80% | 4 .87 % | 1 .61 % | 1 .69 % |
Jun-2024 | -2 .95% | 3 .47 % | -1 .08% | -1 .34 % | 0.45% |
Jul-2024 | 4 .30% | 1 .1 3 % | 1 0.1 0% | 2 .50% | 1 .46 % |
Aug-2024 | 0.51 % | 2 .28% | -1 .63 % | 0.1 0% | 0.7 1 % |
Sep-2024 | -1 .7 1 % | 2 .02 % | 0.56 % | -1 .67 % | 1 .62 % |
Oct-2024 | 1 .04 % | -0.99 % | -1 .49 % | -1 .54 % | -0.59 % |
Nov -2024 | 4 .03 % | 5.7 3 % | 1 0.84 % | 2 .1 8% | 2 .07 % |
Dec-2 024 | -7 .7 2 % | -2 .50% | -8.40% | -1 .38% | -1 .22 % |
Read the full article on Seeking Alpha
For further details see:
Bumbershoot Holdings 2024 Investor Letter
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