Global Equity Markets Experience Positive Third Quarter
The third quarter saw a positive upswing in global equity markets, with 10 out of 11 GICS sectors posting gains. The financials and industrials sectors led the way, while energy was the sole sector to experience losses.
Country-Specific Performance
From a country perspective, the U.S. and Canada were the strongest contributors to global market returns. In contrast, Denmark and the Netherlands were the only two detractors.
Portfolio Performance
Our portfolio returned 8.07% (net) for the reporting period, outperforming the MSCI World Index which returned 6.36%. We are pleased with these results, particularly given the challenging market conditions.
Top Contributors
Several stocks made significant contributions to our portfolio’s performance. Fiserv, a U.S.-based transaction and payment processing company, saw its stock price rise following strong second-quarter results. Bayer, a Germany-based pharmaceutical and crop science company, also experienced a boost in its stock price after a favorable court ruling.
New Positions
We initiated several new positions during the quarter, including Aptiv, a global technology company, and Charles Schwab, a leading provider of brokerage services. We believe these companies have strong growth potential and will contribute positively to our portfolio’s performance.
Eliminated Positions
We eliminated several positions during the quarter, taking advantage of market opportunities to adjust our portfolio and optimize its performance.
Investment Approach
Our investment approach remains unchanged. We focus on identifying businesses with strong, durable cash flow streams and invest in them at attractive valuations. While we are frustrated with our recent performance, we remain confident in our time-tested approach.
Market Outlook
We believe that traders have greatly influenced current market conditions, leading to a disconnect between price and fundamental business value. This presents an opportunity for investors who can identify businesses with strong fundamentals and invest in them at attractive valuations.
Conclusion
In summary, our portfolio performed well during the third quarter, driven by strong contributions from several stocks. We remain committed to our investment approach and are confident in our ability to navigate the challenges of the current market environment.
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