Vol. September 2023 – Long-Term Capital Fund Newsletter
“I love volatility. The market was down dramatically one year, and the Taco Bell stock went from US$14 to US$1, and they had no company debt. I started buying at US$7 and kept at it as it went to US$1. It was the largest position in the Magellan Fund. Six years later, Pepsi took it private at US$42 per share.” – Peter Lynch, who compounded the Fidelity Magellan fund at 29.2% p.a. from 1977 to 1990.
The Fund aims to deliver both coupon income and capital appreciation through investment in global fixed income securities, primarily in investment grade bonds, senior bonds and quasi sovereign bonds.
Global markets experienced heightened volatility in November, driven by a push and pull between concerns over AI valuations and growing expectations of monetary easing. In Asia, Chinese markets remained caught between policy optimism and weak economic data, as subdued inflation and slowing investment highlighted soft domestic demand.
The Fund aims to deliver a steady combination of long-term capital growth and income by investing globally in a range of asset classes.
