Q2 Portfolio Review
Modest Over Performance
This quarter we have outperformed $VOO by 4.19%. Year to date, a marginal 1.4% outperformance.
One of our positions is (Brookfield) BN 0.00%↑ . Brookfield Corporation is a Canadian multinational company recognized as a global leader in alternative investment management. With a focus on real estate, renewable power, infrastructure, and private equity, the company acquires valuable assets across various sectors and countries.
The company, attractive for some time, has changed its corporate structure. With the spinoff of 25% of its asset management business, BAM 0.00%↑ , we have determined the company to of reached a level worth buying.
The well timed buy, has allowed us to keep our edge over VOO 0.00%↑ this year.
Strategy Update:
Last month a small position in (American Financial Group) AFG 0.00%↑ was opened. American Financial Group, Inc. is an insurance holding company that specializes in providing a wide range of property and casualty insurance products in the United States, catering to various industries such as transportation, agriculture, and financial institutions, and distributing its offerings through independent agents and brokers.
AFG is, by all means, not a flashy company–It is boring, but profitable. With strong management, this company has been successful through conservative underwriting and making smart, key decisions.
Selling their Annuity business for $3.5 billion allowed them to continue to focus on being a pure property and casualty company. A $14 special dividend was also issued, further solidifying the company as shareholder friendly.
We also appreciate their willingness to not shy away from new technology, and recognizing the power of machine learning. The acquisition of Verikai last year will continue to improve their underwriting efficiency, as well as aid the other groups that the company owns.
Watchlist:
TransDigm TDG 0.00%↑ has been a success in the aviation parts and components industry. With high margins and great price power, the company has gotten itself on the watchlist.
This company is not in the portfolio, and requires a lot of more research before we would consider starting a position.
Holding “Demographics”
Market Caps:
>100bn: 12.5%
<100bn: 75%
<10bn: 12.5%