Portfolio Commentary

Portfolio Commentary for the Absolute Capital Opportunities Fund is provided on a quarterly basis and can be found below along with other “discussion” articles that are relevant to the Fund. Additional information can be found within the shareholder letters in the Annual and Semi-Annual Reports. If you are a financial adviser and would like to be added to our e-mail distribution list, contact us by e-mail.

 

“The misnomer about “growth” versus “value” though is that plenty of so-called “value” stocks, including most of the companies held in the Fund, have been growing their earnings at roughly the same rate as the overall market throughout this period. The only difference is that market participants have rewarded already richly valued companies (primarily in the Technology sector) with even higher valuations. These levels require a high degree of certainty that the future path of earnings will closely resemble the recent past just to be called fair and they provide very little room for error in that assessment. Meanwhile, many of the companies owned by the Fund have been cast aside under the guise of a different kind of certainty: that earnings for these companies will not grow or grow only modestly for the foreseeable future despite these same companies disproving that theory many times over the past several years.”   [read all]