Mutoro Group Partners, LP
“But to [yield superior results] he must follow specific methods that are not generally accepted in Wall Street, since those that are so accepted do not seem to produce the results everyone would like to achieve. It would be rather strange if—with all the brains at work professionally in the stock market—there could be approaches which are both sound and relatively unpopular. Yet our own career and reputation have been based on this unlikely fact.” – Benjamin Graham
Dear Partner,
The Fund had a minor gain of 0.72% in the six months ended June 30, 2015. Depending on when you joined the partnership, you may see different results in the financials you receive from the Fund’s administrator. The chart below depicts the makeup of our holdings on June 30.
Portfolio Holdings
In my previous letter, I emphasized that as markets reach new heights, we are currently biasing our portfolio toward cash because it allows us to benefit from future investment opportunities created by pessimism. Though market valuations are still elevated, pessimism has gradually increased. In the previous quarter we took advantage of a downturn in the price of our existing holding to increase our ownership. (I have attached the investment thesis for the company in an addendum.) If this environment of pessimism continues, it is likely in the second half of this year that we will acquire more positions of promising long-term value in other companies. Patience is a virtue in times like this and one that through your confidence and support is happily a feature of our portfolio.
Please contact me with any questions, comments, or suggestions you may have.
Very truly yours,
Godfrey M. Bakuli
Managing Partner