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Second Quarter 2020 Letter

Click here to read the second quarter 2020 letter to investors. This one is highly analytical in picking apart our performance, exposures and factor drivers. In it, I explain why we’ve chosen companies off the beaten path, yet remain exposed to many of the same drivers that make the current market leaders great.

Speed Read: 

  • It’s been a decade since the start of GreenWood and the portfolio conditions are nearly the polar opposite as those I faced in 2010;
  • We dissect the Covid-19 impacts on our exposures and performance, and discuss each class of companies. The indirect beneficiaries to the pandemic are by far our largest exposure and, we believe, will drive performance in the next few quarters;
  • Highlighted in the discussion are Peloton, Ocado, CTT, Twitter, Vertiv, Leonardo, Bolloré, and Liberty TripAdvisor;
  • We discuss the factor exposures, explain why we are still overweight Europe and smid Cap, despite global investors running in the opposite direction over recent years. The tide has only just started to turn;
  • We end by detailing how over three quarters of our net exposure is driven by similar industry tailwinds that are fueling Big Tech’s historic rise, but do so with smaller capitalizations, longer runways and significantly better valuations.

Click here to read the second quarter 2020 letter. 

Key Exhibits: 

 


Disclaimer:

This article has been distributed for informational purposes only. Neither the information nor any opinions expressed constitute a recommendation to buy or sell the securities or assets mentioned, or to invest in any investment product or strategy related to such securities or assets. It is not intended to provide personal investment advice, and it does not take into account the specific investment objectives, financial situation or particular needs of any person or entity that may receive this article. Persons reading this article should seek professional financial advice regarding the appropriateness of investing in any securities or assets discussed in this article. The author’s opinions are subject to change without notice. Forecasts, estimates, and certain information contained herein are based upon proprietary research, and the information used in such process was obtained from publicly available sources. Information contained herein has been obtained from sources believed to be reliable, but such reliability is not guaranteed. Investment accounts managed by GreenWood Investors LLC and its affiliates may have a position in the securities or assets discussed in this article. GreenWood Investors LLC may re-evaluate its holdings in such positions and sell or cover certain positions without notice. No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of GreenWood Investors LLC.

Past performance is no guarantee of future results.

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