Philosophy Of Value Investing : The Igorpinto5 Stock Fund

1319 WordsDec 1, 20156 Pages
Philosophy The Igorpinto5 stock fund is aligned with the philosophy of value investing. The fund has a management strategy that seeks to capture continuously opportunities in large-cap companies with solid fundamentals. It is a fundamentalist approach fund, with a long-term investment horizon. Macroeconomic Scenario This fund has global exposure, especially to USA, China, Europe and Brazil. Starting with the United States, with the proximity of the first increase in interest rates since the financial crisis (2008), attention has turned to the indicators associated with the price dynamics and the labor market. According to a recent communication, the FED will launch the new cycle when they are reasonably confident with inflation, and…show more content…
Moving to Brazil, the pessimism that swept the Brazilian economy has intensified over the period. Reports have shown many negative signs associated with the economic environment, especially regarding the fiscal policy. Performance In the beginning of this investment period (9-9-2015), the igorpinto5 portfolio was properly distributed among 5 sectors: Services: Starbucks Corporation (30%), Banks: Goldman Sachs Group Inc. (28%), Industrials: JBS SA (23%), Technology:, Inc. (10%), and Homebuilding: D.R. Horton, Inc. (9%). The Igorpinto5 stock fund had close to no variation when compared to the market (9/15 until 11/13). Despite high volatility in the stock market in the period, the beta of the last four months of Igorpinto5 fund in relation to the S&P500 was 0.97. On 11/13/2015, the beta of Igorpinto5 represented the market. At the end of the first month, the fund 's cash position was close to 0%. Given the strategy to trade only large-cap, high volume stocks, the liquidity of the portfolio was good. JBS SA is the only concern. The company stocks dropped over 20%. The Brazilian company is being investigated for criminal activities. The fund is considering selling this position, and allocating the resources to Inc. Portfolio JBS SA (BM&F Bovespa: JBSS3) Overview. JBS is one of the largest food companies in the world. The company operates in processing beef, pork, lamb and chicken. The

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