Mutoro Group Partners, LP
“The notes I handle no better than many pianists. But the pauses between the notes— ah, that is where the art resides!” – Artur Schnabel
Dear Partner,
The Fund was marginally profitable the first three months ended March 31, 2015, gaining 0.24% in value during this period. The chart below depicts the geographic and asset class breakdown of our portfolio on March 31.
Portfolio Holdings
You will notice from the above chart that the vast majority of our portfolio was in cash. As markets presently reach new highs, we are biased toward cash because it allows us to benefit from future investment opportunities created by pessimistic headlines and falling prices. But holding cash comes with the opportunity cost of foregoing currently attractive investments. Because we cannot earn good returns from investing without actually investing, we are continually searching for opportunities to put our cash to work. As market prices become more expensive, though, we are in no hurry to do so. To this end we are selectively and patiently deploying cash into what we believe are wonderful, long-term positions, attempting to identify companies available at bargain prices, one at a time. The first such investment we made was in the business described in an addendum to this letter. We will continue to try to become owners of companies like this while maintaining significant cash so that if markets become more volatile and retrace some of their post-crisis gains, we will be strongly positioned.
I remain grateful for your ongoing confidence and support, and I continue to strive to deserve it. I am always available for any comments or questions you may have.
Very truly yours,
Godfrey M. Bakuli
Managing Partner