ValueWalk has obtained Aquamarine’s fund letter for February. The fund is a value oriented hedge fund, run by Guy Spier. The fund returned 8.6% in January and 5.4% in February for a YTD return of
Guy Spier keeps a low profile, but he has an amazing track record and is gaining some media attention lately. Guy also is famous for bidding for lunch with Warren Buffett several years ago.
Spier mentions his mistakes and his successes in the letter. He also gives a detailed analysis of Discover Financial Services (NYSE:DFS), which was spun-off from investment bank, Morgan Stanley (MS). He liked the company because he thought it had a good business model, with a closed loop, which was similar to American Express. However, Guy noted his mistake at buying the company at a too high of a multiple.
Letter has been removed and will be updated soon..