The following is an excerpt from our recently published SWS Growth Equity 4Q Strategy Update. For a copy of the complete document, please contact us.
The start of a new decade provides a natural reflection juncture, and we’re using this quarterly as an opportunity to reflect on the strategic merits of our growth equity strategy. This exercise is highly congruent with how we manage portfolios, as we’re constantly assessing whether assumptions formed at position entry remain relevant over time across SWS Growth Equity. Reflecting upon the strategy’s prior twenty months of general availability to the public, along with its nine-year foundation inside a multi-billion-dollar institution, we’re very pleased with our results thus far. We believe our thesis of a continued market bifurcation continues to hold water, and we see our investment process as being purpose built for relative value creation at the benefit of our clients.
The opportunity we identified in extracting a proven institutional investment process lied in the ability to generate attractive risk adjusted returns at the benefit of a much broader set of clients. We delve into granularities behind this in the contributors/detractors section of our portfolio review, but thus far we’ve been pleased with the fruits of labor behind our investment process and risk management overlay.
Uber and Hyundai’s Urban Air Mobility concept from our due diligence meetings at 2020 CES. More details from this trip in the report. Picture provided by Michael Parker.
Since its SWS inception, SWS Growth Equity has navigated through periods of challenging uncertainty: incessant tariff volleying with sizable US’s trading partners, a Fed posture shift from planned rate hikes to eventual cuts, geopolitical risk escalations shifting on the dime of a tweet, impeachment trials, and a 20% peak-to-trough draw-down spanning a three-month period in late 2018. Due to how we structure portfolio positions, where sizing focuses on factor risk and fundamental thesis conviction within respective value chains, our since-inception results have remained ahead of the bench at each month-end snapshot. Results also continue to accrue positively thus far into 2020.
To receive a copy of our entire SWS Growth Equity quarterly update, please contact us.