EVCM is a focused global value fund. Our goal is to generate the highest possible long-term returns without risking a permanent loss of capital. Employing a disciplined value investing approach, we search the world for the best investment opportunities based on long-term business fundamentals. We then construct a long-biased, concentrated portfolio consisting of 20 to 40 positions, mostly stocks, trading at deep discounts to their intrinsic business values.
Our in-depth research explores the merits of each potential investment in the context of a global market. Many of our investments benefit from multiple economic tailwinds as they operate in emerging markets that are experiencing rapid economic growth and development. We use little or no leverage and demand a wide margin of safety for each investment.
EVCM fund commentary
For the month of October, EVCM fund returned an estimated +4.9% net to investors vs. +7.9% for the ACWI Index and +3.0% for the HFRI Equity Hedge Index. Main contributors include: Howard Hughes Corp. (HHC, Financial), Samsung Electronics (SMSD, Financial), General Motors (GM, Financial), basket of U.S. financials, Qualcomm (QCOM, Financial), Isras Investments (ISRS, Financial), LG H&H and basket of Korean Preference shares. Main detractors include: Golf & Co. (GOLF, Financial) and Short TNA ETF.
Most of our investments performed well in October driven by a global stock rally, markets and good company reports. Particularly noteworthy is our basket of Korean Preference shares which benefited from both rising stock prices and a narrowing of the price discount between Korean common and Korean Preference shares. We are taking advantage of these absolute and relative price movements in Korea to gradually shift our basket holdings into those Korean Preference shares with the widest relative price discount. We continue to see large potential upside in this basket.
Sincerely,
Ori Eyal
Managing Partner
