Estimated reading time: 18 minutes. Click here to read this in PDF Format. When Defense…
This quarter’s 4-page letter discusses why we’re encouraged about the progress we’ve made on three fronts: 1) in performance (+15.4% in the fund, or 7.2% alpha), 2) further fundamental transformation at CTT which will be more evident in the quarters ahead and, 3) analytical improvements we’ve made to our process.
- Perception Inflections are key to driving performance outside of just company fundamentals. We outline how we think about classifying market narratives on individual companies and are now watching to ensure our portfolio has a diversity of behavioral factors in addition to the others I outlined last quarter;
- Learning from a mistake (Rolls-Royce) this year, we’ve added a “Reflexivity Vulnerability” for every name in our portfolio and are much more closely watching dynamic situations that could bring a stock into an inferior market narrative;
- Is it worth it? An investor asked us if all the effort we’re putting into CTT is worth it? The answer, more than ever, is definitively yes. The company is in the process of materially upgrading its fundamental trajectory which we believe will lead a material inflection in the market narrative as it looks to become the e-commerce back-end of Portugal, if not the Iberian peninsula.
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.