Managed funds

[Basil]

What a bloody shocker.  Down 8.4% AND 4.0% underperformance.

I have not been happy with how the fund has performed since the annual meeting in early Dec 2024. Fact is, value stocks are outperforming growth and tech and especially outperforming stocks with no underlying earnings to support share prices or growth trading on extreme metrics. 

I expect value stocks to continue to outperform for quite some time hence the reason the vast majority of my investments are in stocks that are either defensive or are growth at a reasonable price.    I will review the size of my holding again, (already quite substantially reduced it in early March), towards the end of this quarter if Discovery continues to give underwhelming performance.

[Shareguy]

This is a long term proposition. First 2 years and the fund was up over 200 percent. There will always be some bad months that's the nature of the game.

On the bright side if enough people withdraw their funds they might re open it again, as I for one will be increasing my allocation. Have complete faith in Mark and Chris and suspect at the end of this year investors will be happy.

[Basil]

Fair enough mate, you did very well getting in early and have heaps of embedded margin to absorb the bumps in the road ahead.

[Shareguy]

Well done Discovery to finish in the green after a very volatile month.

They say

It's important to remember that, whilst in the short-term
stock prices can be volatile, in the medium term, prices
follow company earnings. The earnings growth of our
companies is strong and predictable, which gives us
confidence in the outlook for the Fund.

https://discoveryfunds.co.nz/assets/Newsletters/Discovery-April-25.pdf

[Basil]

Yes, great recovery in April from being down ~ 10% at one point earlier in the month.  That said, performance since they closed the fund to new investment in Sep 2024, has been very poor.  Last 6 months is negative 0.3%.   Now that markets have settled down a bit, maybe things will go better going forward.  Let's hope so.

[Dolcile]

How does -0.3 compare to the index?

[Stoploss]

How does -0.3 compare to the index?

Index is - 4%
 All the numbers are in the above post .

[Dolcile]

Not sure why the disappointment then? -0.3% v -4% seems quite good. 

[Basil]

One of the greatest ironies with investing in funds is when you go backwards but you outperform the index so you've got decent outperformance so you should be happy, right ?  I have yet to master that trick lol

[Shareguy]

Great start to the month with Discovery. Their largest holding GDG up 7 percent today as well.

Pie Australasian funds also up 8 percent for the last month.