2018 Q2 - Investment Letter (Process)

2018 Q2 - Investment Letter (Process)

The S&P 500 Index returned 3.43% in the quarter ended June 30, 2018.[1] We believe an investor who aspires to achieve attractive risk-adjusted returns must first identify at least one exploitable and persistent investment mispricing. In our case, as we’ve discussed in past letters, we believe we’ve identified two: 1) a great business mispricing that …

2016 Q2 - Investment Letter (Nike)

2016 Q2 - Investment Letter (Nike)

Only halfway through the year and what a perplexing ride this has been! Only a few short months ago, we were writing about the markets plunging 10% over anxiety of a Chinese devaluation, only to then rebound shortly thereafter. In even quicker fashion, markets apparently discounted the odds of Britain leaving the European Union (EU) …

2015 Q3 - Investment Letter (Colgate)

2015 Q3 - Investment Letter (Colgate)

The S&P 500 index declined by 6.44% in the third quarter, bringing its year-to-date return to -5.29%[1]. While this aggregate return is clearly not inspiring, some areas of the market have actually experienced much more precipitous (and perhaps permanent) losses over the last year than this small decline suggests. Most consequentially, the commodities supercycle, a …