1Q2022 – Focus Growth Commentary

We try to remain dispassionate, separating facts and data about companies from the stories people tell about stocks

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  • Though most of the Portfolio companies released solid earnings results, somewhat elevated valuations, rising interest rates, the invasion of Ukraine, and a general “risk-off” mentality created a very difficult start to the year for our style of investing, in our view.
  • Our largest absolute detractors in the quarter, like Meta Platforms and Netflix, currently have negative narratives attached to them, but we believe these narratives and share prices have been disconnected from actual data and the underlying company fundamentals.
  • We have taken advantage of these share price dislocations, increasing our weightings in companies like Visa, Netflix, Meta, Airbnb, and PayPal, and taking profits from the trims of Accenture, Zoetis, MSCI, and Gartner. We exited our position in Starbucks.
  • The macroeconomic and geopolitical environment is complex and inherently unpredictable. This is exactly why we stay focused on the long-term value propositions, competitive advantages, ongoing initiatives, growth opportunities, and earnings power of our companies. By and large, our long-term views on our Portfolio holdings remain unchanged.

Read the full commentary & disclosures here →