i-Cthru’s consolidated time-weighted return over Q3 2019 is USD 0.23%; EUR 4.53% (YTD USD 4.52%; EUR 9.76%). These results are unleveraged, net of all trading costs, fees, dividend tax withholding for non-US clients and cost of protection of individual portfolio holdings.
Phew, what a quarter, up – down, up – down, mostly driven by one-line “news” headlines. I hope you were not following every step during the last three months. Like an inexperienced free climber on El Capitan, Yosemite National Park, it would have surely ended in losing focus and have emotions like fear take the upper hand, resulting in possibly tripping halfway through to the top.
DocuSign reported its quarterly numbers and an increased outlook on its future growth. The stock price jumped 23% in one day. We still think DocuSign is so much more than a simple digital signature company. It truly focuses on workflow productivity improvements in regards to document management and approval, where, very much like block-chain driven technology, all original documents are in one place for all parties involved to be completed and approved. For instance: buying or selling your house has never been easier with DocuSign. We expect the stock price to remain volatile, but overtime to produce a very meaningful uptrend.
You see, we might have become much smarter in many ways since our early beginnings, but it does not mean we became much wiser. Animal Spirits are still a dominant factor in investing and following the herd as well as focusing on the short-term trends, can easily overwhelm our long-term investment goals.
- We see more value in smaller companies than in large established corporations, especially the ones that drive big index ETFs, which we think might have become a crowded place to invest in;
- We see value in the Chinese equity markets and it does not hurt to look into some of the more established big platforms listed there. A rather homogeneous market with 1.4 billion consumers with growing dispensable income cannot be ignored;
- We see a narrative developing where many small and prominent events are adding up to an increased short-term fear factor. Beware of animal spirits: they don’t mix well with rational financial performance.
Breathe with us and check in with us at i-Cthru to talk about your long-term investment goals and see if we can become a bit wiser together.
Thank you for your trust.