Olesen Value Fund L.P. performance update for the July 2014
Olesen Value Fund – Update
The Olesen Value Fund L.P. lost 1.1% in July vs. -0.7% for the MSCI All- Country World Index and -1.4% for the S&P 500 (INDEXSP:.INX).
During July, we started accumulating shares in a small Asian industrial firm. The company has good market positions in a few different niches, a diversified portfolio of businesses, has always been profitable, a high dividend yield, a large cash balance, and little debt. The stock trades at only approx. 7 times our estimate of normalized earnings. Consistent with our usual policy, we won’t disclose the name of the company until we are finished accumulating the position.
During the month, we also continued buying shares in the small European company I described in the update for May. The stock price has declined in connection with the recent weakness in European equities and now trades at 8.5 times adjusted trailing earnings. I believe this is a very attractive price for this above average business. I also think a divestiture or curtailment of one of its business units could be a catalyst for a substantially higher stock price. Consequently, I am aggressively buying shares in the company now that they are available at very attractive prices.
Olesen Value Fund – Investment Philosophy
- Seek to generate substantial capital appreciation over the long term, with minimal risk of loss
- Define risk as permanent loss of capital; tend to view volatility as opportunity, not necessarily a risk
- Value investing philosophy, using a bottom-up approach
- No leverage
- The fund has $28 mil. in assets and is managed by Christian Olesen
- Virtually 100% of my net worth, except for my cash reserves, is invested in the fund
- Previously worked as analyst/trader for Xaraf Management, a group within Paloma Partners, a Greenwich, CT-based hedge fund with approx. $2 billion in AUM
- Graduated from Wharton (Finance, Accounting) and holds the CFA designation