For most investors, past quarter has been quite peacefully. This also applied for the members of A&F Investments. The stock markets recovered from the Brexit and at quarter-end we ended with a modest return. However, interesting discussions were held by the members.
First, we reduced our position in oil companies in difficulty, because the risk was increased due to high-debt and most of our members preferred investing in a young and innovative firm rather than a “coin flip”. So, we decided to enlarge our position in a Belgian company that is specified in developing a system for molecular diagnosis. Over the past 6 months, the share price decreased 50%, but the development process still going according to plan and no fundamental changes have taken place that could justify such a big drop. Next, two profitable investments have been cashed in.
“most of our members preferred investing in a young and innovative firm rather than a “coin flip””
One of the new purchases was a big Chinese technological firm, which was recommended by the macro-team and was then analyzed by a second team. All committee members are convinced that both China and the rest of south-east Asia has enormous potential of growth and as an investment group, we cannot ignore this. One of the other purchases that stood out was the acquisition of an American IT consultancy firm. Fundamentally, it looked very good, since it has a large marked share, much innovation and growth in every area. Unfortunately, this firm got bad publicity on the last day of the quarter, due to a corruption scandal in India. This ensured a drop of 14% in the market price. But we remain positive as long as nothing is definite.
During the last meeting of the quarter, former-chairman of A&F Investments, Michael Koop, provided the committee members with a presentation about the CFA Certificate. Some members were already sure that they wanted to have this qualification, but I believe the doubters were also convinced after the clear presentation, considering the benefits of both the CFA society and the certificate. For upcoming quarter, we will keep an eye on the American electives and we will improve the geographical diversification of our portfolio.
Interested in joining this investments group? Feel free to contact us by sending an email to info@asset-accountingfinance.nl
