The Profeta International Fund appreciated 3.4% in December. This is in stark contrast to the US’s S&P500 which declined 2.5% and Australia’s All Ordinaries, which declined 3.2%. The fund is highly uncorrelated to major indices due to our concentrated positions in smaller capitalised companies around the world. While we think that there are over-inflated valuations in some of the largest companies in the world, any correction in these securities and indices should not really impact our portfolio of quality, growing companies, trading at attractive valuations.

Our portfolio’s strongest performers were Expedia, Direct Line and Alphabet, with Expedia winning back market share while still trading at an attractive valuation, and Alphabet rallying following breakthroughs in quantum computing with their new Willow chip. Direct Line, one of the UK’s leading motor and home insurers, received an increased takeover offer from Aviva.

In the December newsletter we discuss our view on international market opportunities, particularly in Asia, Europe, and Latin America, where we’re finding high-quality businesses trading at significant discounts to their U.S. peers.

The Profeta International Fund newsletter can be found here.

Please reach out to the team at admin@profetainvestments.com for more information.