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Elite LWM East-West Value Fund
Performance & Market Update
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The latest factsheet for the Elite LWM East-West Value Fund, which includes top holdings, diversification and performance figures, can be accessed by clicking this link.
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In March, the global equity rally moved into a higher gear.
All major markets posted large gains. Leading the pack were the German DAX (9.92%) and the Japanese Nikkei (9.52%), followed by the French CAC (7.15%), the FTSE 100 (6.07%), the MSCI World (5.93%), the S&P 500 (5.88%) and the Dow Jones (5.15%).
The Elite LWM East-West Value Fund was up 3.60%, despite our entering the month only 70% invested. Indeed, performance would have been considerably stronger but for a profit warning (the second in two months - we bought after the first) by new holding Intec Telecom Systems.
Our best performing stocks in March were Blue Scope Steel (Australia, +20.29%), Canon (Japan, 17.05%) and Ceramic Industries (South Africa, +14.58%).
Our worst performing stocks were Intec Telecom (UK, -39.56%), Fyffes (Ireland, -11.50%) and Shanghai Prime Machinery (China, -5.90%).
All performance figures are for local currencies.
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LWM Distribution LLP
In order to provide better support to UK-based IFA and investment firms, we have launched LWM Distribution LLP, a UK Limited Liability Partnership with offices in Bridgend, south Wales.
LWM Distribution will coordinate all aspects of marketing and distribution for the Elite LWM East-West Value Fund. Please contact us should you require any information, brochures etc:
LWM Distribution LLP
Atlantic House
Charnwood Park
Waterton
Bridgend
Mid Glamorgan
CF31 3PL
Tel: 0845 880 4150
Fax: 0870 622 0219
support@lwmdistribution.com
www.lwmdistribution.com |
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Change in Fund Risk Rating
As a result of a number of purchases in March, the Fund ended the month with 25 holdings and just over 80% invested.
Now that our cash holdings are below 20%, we have increased our assessment of the Fund's risk rating to 'Medium'. For further information on topics including risk management, our philosophy and value investment theory, we produce a comprehensive document designed to assist UK firms with their due diligence on Lowes Wealth Management and the Elite LWM East-West Value Fund. Please contact us if you'd like a copy.
Whilst we continue to search for established, solvent companies that are trading at substantial discounts to their real value, we remain extremely cautious about the global macro economic situation. If we can find the right opportunities, we will move more closely towards full investment. At the same time, if some of our holdings increase in price to the point that they no longer represent good value, we will be quite prepared to exit the positions and increase our cash holdings.
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Lowes Wealth Management
Lowes Wealth Management (LWM) is the exclusive provider of investment advice to the Elite LWM East-West Value Fund.
We are a boutique investment management firm specialising in classical value investment. Our attitude to risk can be summed up in Warren Buffett's 3 golden rules of investment management:
1. Don't lose money! 2. Don't forget the first rule! 3. Don't use debt!
We seek to identify established, solvent companies trading at a significant discount to their real value. We believe that buying and holding shares in such companies will lead to substantial outperformance over the longer term.
We always know what we are holding and why.
We have the right to move partially or completely into cash if we feel that this would be in the best interests of our investors.
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Complete Lowes Wealth Management Strategy Performance
The Fund uses the Lowes Wealth Management classical value investment strategy which was launched in October 2005. We use the concepts laid down by Benjamin Graham, the tutor of Warren Buffett, in the 1930s.
Classical value investment has consistently outperformed markets for more than 70 years. Whilst we hold closely to Graham's original approach, we use a concentrated portfolio and diversify across major and emerging markets.
Since launch we have dramatically outperformed all major markets, with lower volatility.
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We seek to identify and invest in the best value opportunities from around the world. We typically hold around 25-35 stocks. Experience has shown that this number is large enough to gain significant risk reduction via diversification, but not so large as to overly dilute the outperformance that we are able to achieve.
Over the last 4 years we have dramatically outperformed all major global markets, with lower volatility. By viewing cash as a viable asset class, we have been able to protect our investors when opportunities are rare or when macro conditions have been at their most worrisome.
As can be seen from the graph above, the secret to successful investment management is not to generate spectacular returns. It is to generate decent returns whilst avoiding spectacular losses.
Kind regards,
Justin Lowes
Managing Director
Lowes Wealth Management
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