May’s seismic shift
The month of May saw the market experience the impact of the sudden realization that the mining boom is over. Due to the absence of value in the market, and our expectation that other investors would eventually catch on to the impact of a recession in mining and mining services, both Montgomery funds had already moved to a high cash weighting.
Indeed back in May, The Montgomery [Private] Fund was re-opened to investors to take advantage of anticipated opportunities. The Fund will close again on 4 July 2013. To request an Information Memorandum click here.
The Montgomery [Private] Fund ($1 million minimum initial investment) has now returned 37.83% after all expenses since inception on 23 December 2010, beating, by 30.37%, the S&P/ASX 200 Industrials Accumulation index, which has returned 7.46% over the same period.
To May 31, 2013, The Montgomery Fund ($25,000 minimum initial investment) has returned 28.19% after all expenses since its inception nine and a half months ago, on August 17 last year. The Fund has beaten the S&P/ASX 300 Accumulation index, which has returned 16.90% over the same period, by 11.29%.
While it is early days, we are pleased with the relative out-performance of 30.37 per cent for The Montgomery [Private] Fund and 11.29 percent for The Montgomery Fund, after all expenses.
To find out more about The Montgomery [Private] Fund, click here; to find out more about The Montgomery Fund, click here.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
rhonda tillman
:
Hi Roger,
Is it too late to switch investments to cash.
David S
:
Well done Roger et al. Wish I could be part of it but can’t complain about recent performance using Skaffold on my own up to this point. The mismatch between valuations and prices helped me get out at the top recently and I am a happy camper indeed sitting on cash, watching and waiting for some bargains hopefully. I really like the way you guys are agile enough to go to cash much like I did, whereas most other funds have to remain 90-100% invested, even if the stocks they hold are overvalued. I was just wondering if there are any updates on an overseas fund? Would you potentially be sharing resources with Magellan in terms of research etc. in this venture as it would kind of make some sense? I’ll understand if you can’t comment on this matter given Magellan is a listed entity. Just interested…
Roger Montgomery
:
Yes, the idea of being fully invested when we are clear that the market is unjustifiably exuberant, makes no sense. Our investors appreciate this flexibility as much as we do. Regarding JV’s, future plans etc, we cannot ever discuss commercial proprietary matters. Thank you for asking however and I will make an announcement when and if there is something to say on that front.