Mutoro Group Partners, LP
“And let us not grow weary while doing good, for in due season we shall reap if we do not lose heart.” – Galatians 6:9
“Which of you by worrying can add one cubit to his stature?” – Matthew 6:27
|
Annual % Change |
Compound % Change |
||||
|
MGP, LP (Gross) |
MGP, LP (Net) |
HFRI Fund Index |
MGP, LP (Gross) |
MGP, LP (Net) |
|
|
2015 |
(3.5%) |
(5.0%) |
(1.1%) |
(3.5%) |
(5.0%) |
|
2016 |
24.5% |
18.9% |
5.4% |
9.6% |
6.3% |
|
2017 |
(3.3%) |
(4.7%) |
8.6% |
5.1% |
2.5% |
|
2018 |
(0.9%) |
(2.4%) |
(4.7%) |
3.6% |
1.2% |
|
2019 |
30.0% |
23.9% |
10.4% |
8.4% |
5.4% |
|
2020 |
34.2% |
25.7% |
11.8% |
12.3% |
8.6% |
|
2021 |
8.5% |
5.5% |
10.2% |
11.8% |
8.1% |
|
2022 |
(44.8%) |
(45.7%) |
(4.3%) |
2.3% |
(0.8%) |
|
2023 |
21.6% |
19.9% |
8.1% |
4.3% |
1.3% |
|
9M 2024 |
9.5% |
8.3% |
8.4% |
4.9% |
2.0% |
|
Aggregate |
60.1% |
21.6% |
64.7% |
||
|
Annualized |
4.9% |
2.0% |
5.3% |
||
Dear Partner,
For the first nine months of 2024, our fund returned 9.5% on a gross basis. Net of fees and expenses, it returned 8.3%.
I was fortunate to be raised by a woman with a healthy moral compass. Although I haven't attended a church service in decades, as a child I went every weekend. My mother is deeply religious. Through her faith, she instilled in her children a sense of justice tied to humane communal values, a constructive curiosity about the world, and a patient belief in ourselves connected to something greater than the fleeting, volatile emotions of our peers. Hearing lessons from scripture at church and at home profoundly shaped my moral direction in life. So much so that many years ago, I created my own gospel. It might be a bit sacrilegious to do so, but it has my mother's blessing, which is all I need. I call it "The Gospel of Godfrey," and she enjoys when I recount it to her. I’d like to share it with you as well. It goes like this: "God asks us to work, God asks us to wait, but God does not ask us to worry." Amen.
I reflect on this gospel of mine when I consider the pendulum-like swings that happen in life—whether in domains personal, business, or national. There are always things to be stressed about if you’re paying attention to the world around you, and some moments present more stress than others. But it's useful to remember—whether you believe in a higher power or not—that the universe we inhabit rewards working and waiting but doesn't accrue much benefit to worrying. When appropriate, “concern” should never leave the room, but worrying often overstays its welcome.
The national political climate is moving toward greater levels of uncertainty, with misguided ideas gaining new ground and suggesting a negative economic and social outlook. These include tariffs; mass deportations; appeals to white supremacy and misogyny; cuts to environmental regulations; and reductions in social programs for disadvantaged Americans. The choices we make have consequences, though the magnitude of those consequences isn’t always clear when we make them. Elections—choices made en masse—do too. On top of all of this, broad equity indices are approaching valuation peaks not seen since the late 1990s tech bubble, while higher inflation and interest rates seem back on the table.
In times like these, when worrying doesn’t do much good, we can work and we can wait—get active or get patient. I’ll be doing both as the year winds down and I look forward to next year. I encourage you to consider doing the same.
The table below shows the composition of our portfolio at the end of the quarter.
Portfolio Holdings
Thank you for your continued trust and support. I welcome your thoughts and questions. If you would like to add to your investment or know someone who might like to join us, please feel free to reach out.
Sincerely,
Godfrey M. Bakuli
Founder & Managing Partner