American Growth Fund - Apr 2022
Factsheet: April 2022
The Fund's objective is to achieve optimal long-term capital growth through active management of a portfolio of large-capitalisation stocks based primarily in North America.
The investment strategy is based on fundamental analysis. The stock selection process is based in particular on the activities of the companies, their governance, financial structure and development perspectives. The fund aims above all to identify companies with dominant positions, with a significant reinvestment capacity and low levels of gearing.
The recommended investment period is 5 years. The reference currency is the US Dollar.
US markets experienced one of their worst month in history, with for the relevant period (30.03.2022 to 27.04.2022) the S&P 500 index down -9.09%, the Dow Jones Industrials index down -5.47% and the NASDAQ 100 down -13.72%.
In such a difficult environment, it will come as no surprise that the most defensive sectors, such as Tobacco (+6.26%) and Merchandise Stores (+6.26%) were the only place to hide. On the other hand, the Movies and Entertainment sector (Disney and Netflix, among others) was down an impressive 30.20% following Netflix mediocre results. The Internet Retail sector (read: Amazon) was down a no less impressive 23.42% for the month (because of Amazon’s results).
The FFM American Growth Fund was down for the relevant period (30.03.2022 to 27.04.2022) by -8.75%.
The monthly top three consisted of Sherwin Williams (+10.15%, good earnings), PepsiCo (+2.59%, defensive stock) and McCormick (+1.14%, defensive stock). On the other side, we find PayPal (-23.97%), Idexx Labs (-21.31%) and Alphabet (-17.95%).
We sold Wingstop based on disappointing results and Automatic Data Processing after the stock rose sharply. We invested the proceeds in Texas Instruments in order to increase the fund's exposure to this much less cyclical analog semiconductor sub-sector.
Disclaimer: Past performance is not a reliable indicator of future performance and in no way constitutes a guarantee of future performance or capital. This non-contractual document is for information purposes only and does not constitute an offer for sale.
Prior to any investment, we recommend that you consult your advisor for a better understanding of risks. In the event of disagreement or litigation arising from this document, the full prospectus will prevail.
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