Global Return Value Investments commentary for the month ended August 30, 2020.
Our portfolio continues to out-perform. Best of all, we've accomplished this with minimal risk, owing to our Cash Balance and Net Market Exposure. And notably, we haven't had to perform any acrobatic buying and selling of stocks, nor have we had to lever-up the Fund to achieve these results.
Lee Ainslie's Maverick Capital had a difficult third quarter, although many hedge funds did. The quarter ended with the S&P 500's worst month since the beginning of the COVID pandemic. Q3 2021 hedge fund letters, conferences and more Maverick fund returns Maverick USA was down 11.6% for the third quarter, bringing its year-to-date return to Read More
Our differentiated approach to Risk Management combined with our advanced technology has served our clients well.
Our continued strong out-performance has prompted many people to ask about our portfolio composition; namely, do we own any of the FAANG stocks or Tesla? What have we been buying and selling? And how are we outperforming during this volatile period?
Global Return Value Investments: FAANG+TSLA
Regarding FAANG+TSLA, while Technology does represent a large portion of our portfolio, we don't own any FAANG stocks nor Tesla; though we did own two of the FAANG stocks back in 2016.
Generally speaking, if Wall Street is obsessively talking about a stock, then I'm probably ignoring it with equal enthusiasm.
Regarding what stocks we're buying and selling, I don't comment on specific holdings. There are a lot of unintended consequences that come from talking your book and I want to avoid these. However, I will broadly comment on our activity.
In equities, since June we've added to seven holdings and did not enter any new positions. We also reduced holdings in three companies at favorable prices and did not fully exit any positions.
For our options activity, we had three hedges expire in August. And we entered two new hedges in the last week of August.
Regarding our out-performance, long-time investors aren't surprised that we're leading the pack. Our battle-tested risk management strategy focuses on identifying opportunities with superior risk/reward ratios while managing for risk and expecting volatility. And the data indicates that our risk management strategy enables us to accelerate our out-performance during periods of increased volatility. As such, we are optimistic about our future prospects.
Finally, I would like to welcome our newest Partner and acknowledge those Partners who increased their investments in August. I'm honored you invested with us. The combination of my personal investment in the Fund and my passion for investing ensures I'll continue working hard for our benefit.
As always, I welcome the opportunity to address any questions you may have about our technology, risk management or how we invest.