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We have posted our brief quarterly letter, which you can read by clicking here.
- Our underperformance this year reflects irrational prices that have become even less rational, particularly with the view we have on the board of our largest position;
- Our portfolio has higher FCF growth (+61% in the last 18 months) and a higher FCF yield (14%) than the market and even FANG, yet the securities still managed to under-perform. This has led to significant pent-up alpha as fundamental value will continue to accelerate in the next 18 months;
- Hyperbolic discounting, a cornerstone of behavioral economics, suggests when the market finally catches up to reality, the pay-off will be far larger than it otherwise would have been;
- As other Builders have done, we are taking advantage of the irrationality by welcoming a number of new investors with the launch of our Luxembourg fund;
- We look forward to announcing new evolutions to our framework and collaborations with Dr. Phil Tetlock at our investor day on September 5. We look forward to seeing you there.
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Past performance is no guarantee of future results.