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May
2010
This Month:
Performance in April
Lowes Wealth Management
Complete LWM Strategy Performance
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Elite LWM East-West Value Fund 
Performance & Market Update
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.

Greetings,
 
In April, major markets were mixed.
 
US markets fared best, with the S&P 500 (+1.48%) and the Dow Jones (+1.40%) both positive. The MSCI World (-0.16%), the Japanese Nikkei (-0.29%) and the German DAX (-0.29%) were all slightly negative. The FTSE 100 (-2.22%) and the French CAC (-3.95%) brought up the rear.
 
The Elite LWM East-West Value Fund performed steadily, gaining 0.84%.

 

Our best performing stocks in April were Dynasty Fine Wines (China, +22.71%), Intec Telecom Systems (UK, +15.40%) and Tidewater (US, +11.95%).

  

All performance figures are for local currencies.


 

LWM Vs. Marjor Markets 



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.

 
  
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.

 


LWM Total Strategy Performance

 

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

 
 

Performance Figures Prior to the Launch of the Fund

 

Prior to 1st December 2008 (the launch date for the Elite LWM East-West Value Fund), the performance figures quoted for the underlying strategy are the gross returns of our entire equity portfolio over the period beginning October 27th 2005. From 27th October 2008 to January 5th 2009 we were 100% in GBP cash for the transfer of clients' assets into the Fund. We measure only the performance of the money that was invested on behalf of our clients. We factor in any cash received in the form of dividends from stocks purchased and any realised cash that was held resultant of the sale of a stock. We do not however factor in sums received for investment that did not enter the investment cycle.


 
 

Important Notices:

 

This communication constitutes neither an offer to sell nor a solicitation of an offer to purchase/subscribe to any investment.  All information and attachments (the "Material") are provided by Lowes Wealth Management ("LWM") as part of its internal research activity. This Material is solely for informational purposes, and LWM makes no representations as to accuracy or completeness. LWM is not responsible for errors contained herein and shall not be liable for any consequences arising out of reliance upon same. Opinions herein constitute the present judgement of LWM, which is subject to change without notice.

This communication is confidential and may be covered by legal, professional or other privilege. The information herein is solely for the intended recipient(s). Any other access is unauthorised. If you are not the intended recipient(s) please immediately delete it from your system. Any disclosure, copying or distribution, as well as any action taken or omitted to be taken in reliance on information herein, is strictly prohibited. This Material and its use may be restricted by law in some jurisdictions, and persons who receive or otherwise interact with it are required to inform themselves and to comply with any such restrictions. Specifically, the information herein is not for distribution to the United States or Switzerland, and it does not constitute an offer or a solicitation of an offer to buy or to sell securities in those countries or to sell securities to or for the benefit of any United States or Swiss resident.
 
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