Mutoro Group Partners, LP
“I didn’t hear no bell.” – Rocky Balboa, Rocky V (1990)
As of March 31, 2022. Inception of fund investment activity is January 1, 2015.
Dear Partner,
For the first quarter of 2022, our fund declined 16.6% on a gross basis and 16.9% net of fees and expenses. We added one new holding and ended the quarter with 14 total holdings.
I do not have a prediction for inflation and interest rate levels this year. And I do not have a forecast for our fund’s results by year-end. That said, I think it is likely that continuing to invest in the businesses we presently own will reward us long-term. What I wrote in my 2021 Annual Letter remains true:
All our holdings generate free cash flow, which is likely to continue. Their long- term returns on invested capital seem stable or improving. None has a meaningful risk of bankruptcy. The federal funds rate path is unlikely to affect their core activities negatively. They pass on inflationary pressures to their customers without much consequence.
I have been buying more of the companies we own at current prices. I also have been buying into the fund. In the year through April 30th, I increased my limited partner stake by 20.1%.
The exhibit below shows the composition of our portfolio at the end of the quarter:
Portfolio Holdings
I am grateful for your ongoing confidence and welcome any comments or questions.
Sincerely,
Godfrey M. Bakuli
Managing Partner