Idea Generation: International Diffusion of Secular Change One consistent source of idea generation for Somar is the diffusion of secular change across borders. We study the winners and losers in the area where the change originated and leverage those learnings to other geographies giving us an early read into opportunities for longs and shorts there.
We are not happy to report these results, as the performance falls short of what we expect from Somar and the businesses we invest in. We have analyzed the causes of this gap and concluded the following: Operationally the businesses are performing well, meeting or exceeding our expectations There has been no single or small […]
The performance this month fell short of what we expect from Somar in a month with similar performance from the indexes. Yet this was no normal month. In the wake of the election of Donald Trump as the next US president the markets reassessed their perspective and made violent rotations among sectors. The sectors in […]
Volatility remained high in October as uncertainty about the upcoming US election weighed on investors’ conviction to build long term positions. Our long term focus led us to build positions in extremely attractive businesses when their valuation opened very attractive risk-reward profiles.
Volatility picked up in September and we used the market swings to continue adding to our portfolio. We are extremely sensitive to valuation and maintain high standards for adding new and existing positions. A volatile flat market like the one we experienced in September plays to Somar’s strengths. Virtually all of our performance in September […]
Secular Change As we move forward we would like to provide you with more details about our portfolio. We prefer to discuss individual positions close to the time of harvest. We do this to avoid a common pitfall that humans tend to fall into while analyzing complex situations: commitment and consistency. To say it another […]
During the month we continued to take advantage of the market dislocation to build our portfolio with investments at highly attractive risk-rewards. A large proportion of these businesses reported in the second half of the month and we were pleased with each company’s evolution and its prospects for continued value creation. This leaves us extremely […]
Markets were highly volatile during the month in response to the buildup and outcome of the Brexit vote. The volatility and market dislocation opened opportunities for us to start building our portfolio at very attractive valuations.