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Matthias Knab, Opalesque: Ryan Morris, President at Meson Capital Partners, writes on Harvest Exchange
For the quarter our performance was 13.6% vs. indices of 3.8% HFRI Hedge Fund Equity Index, 2.5% Russell 2000 and 6.1% S&P 500. Longs contributed 14.5% while shorts detracted 0.9% net of borrow fees and ended the quarter 29% net long exposure. It is no secret that it has been extremely difficult for most investors to find appealing value investments in the current environment.
The 'Buffett-metric' US market cap to GDP stands at 131%, eclipsed only in history for 6 months at the 2000 bubble peak where it reached 145% briefly. In order to stay fully invested, many investors have to reach outside of their value discipline and some, like ValueAct Capital have been returning capital to investors.
In contrast, we have been busier than ever and have more opportunities than capital and bandwidth to tackle, particularly in the field of electrification where we are working on a major new investment. We refuse to stretch outside our discipline and instead have deepened our capabilities to adapt to the current more challenging environment.
Since the industrial revolution, technology has been a wedge between those that can adaptively use tools to amplify their capabilities and those that are displaced by it. A map of the 2016 US election outcome approximate...................... To view our full article Click here
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