Portfolio Update 09. June 2022
Recession? Final tranche of investment, Holding up well in inflation-adjusted returns, Timing the market.
We've been a bit quiet for the past few weeks, so apologies for the late update.
We deployed the final tranche of our investment for this year at the end of July. Our timing was not great as commodities kept moving lower, but our conviction is still the same. Let's look at this in more detail.
Money Weighted Rate of Return takes into account cash-flows (our investments throughout the year) in comparison to Time Weighted Rate of Return which does not. The fact that our MWRR is lower than TWRR (see Performance section) means that our cash-flow timing had negative effects on our return and we would have been better off if we were to invest the whole amount in the beginning. However we can't invest cash that we don't have, so there's not much we could have done about this.
Since inception our 'The Haptón Portfolio' seems to be holding up quite well. We're outperforming our benchmark by +28.64% (comparing TWRR). Even if we use the MWRR to compare against the "FTSE All World Benchmark", we're still outperforming by +20.73%. We don't have the charts but the comparison against most market indices (S&P 500, Nasdaq, etc) is similar.
So far 'The Haptón Portfolio' seems to be doing exactly what we wanted it to do; maintain our purchasing power, having positive inflation-adjusted returns. Of course all this comes at the price of increased volatility. If you look at the chart in "Figure 2" you can see how far down we came from the highs we reached a few months ago.
Performance
For the month of June 2022 'The Haptón Portfolio' had a -10.07% Money-weighted rate of return (MWRR) and a -10.01% Time-weighted rate of return (TWRR).
Since inception (end of August 2021 to end of Jun 2022), MWRR was +16.06% and TWRR +23.97%.
Monthly performance vs Benchmark
For the month of June 2022 the portfolio's performance was -10.01%, underperforming the benchmark index by 6.33%.
TWRR for June; -10.01%
Benchmark Index "FTSE All World ETF (£VWRL)" TWRR for December; -3.68%
Performance Since Inception vs Benchmark
Performance since inception (since the 31st of August 2021) was +23.97%, outperforming the benchmark index by 28.64%.
TWRR since inception; +23.97%
Benchmark Index "FTSE All World ETF (£VWRL)" TWRR since inception; -4.67%
Transactions
Positions
Active
Liquidated
Closing Thoughts
It's been a few tough months and with the news-cycle shifting towards recession fears, we might have a few more tough months ahead of us. However we can't really time the market, so our strategy is to stay invested and deploy more capital when we have it.
The investment horizon for “The Haptón Portfolio“ is 5-10 years. Looking at the big picture, we're still very optimistic, as most of the sectors we're invested in still face structural issues that will take a long time and a lot of capital to be resolved. We've analysed this in detail and linked to a lot of relevant research in past publications, so now it might be a good time to go back to our past updates and do some reading!
That’s it for this monthly portfolio update. Have a nice week!
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Disclaimer
We are not professional financial advisors, therefore not qualified to give financial, investment or any other kind of advice. The content in our “The Haptón Portfolio“ publication is intended to be used and must be used for informational purposes only. It is important you do your own research and seek independent professional advice before making any investment decisions.
Disclosure
We hold investments in the companies mentioned in "Figure 4". We may initiate or close positions without further notice.