Stanphyl Capital April 2016 Letter

10 Dec

Stanphyl Capital April 2016 Letter

Stanphyl Capital April 2016 Letter

Stanphyl Capital letter for the month ended April 30, 2016. Friends and Fellow Investors: For April 2016 the Stanphyl Capital Fund was up approximately 2.1% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 0.4% while the Russell 2000 was up approximately 1.6%. Year to date the fund is up approximately 11.4% net while the S&P 500 is up approximately 1.7% and the Russell 2000 is unchanged. Since inception on June 1, 2011 the fund is up approximately 93.1% net while the S&P 500 is up approximately 70.5% and the Russell 2000 is up approximately 42.8%. (The S&P and Russell performances are based on their “Total Returns” indices which include reinvested dividends.) As always, investors will receive the fund’s exact performance figures from its outside administrator within a week or two. In mid-April I increased our short position in the S&P 500 (via the SPY ETF) when it came within 2% of its all-time high, as I believe the broad market is now even more overvalued within the context of  sliding  profit margins and  awful corporate earnings… …which I expect to further decline as  the world enters a recession. Meanwhile, the S&P 500’s price-to-sales multiple is nearly back to the bubble level of 2000: Trailing S&P 500 GAAP earnings (including the preliminary Q1 2016 estimate) are approximately just $88 and a 16x multiple on that (generous if earnings stay flat or worsen as I expect them to, and yet some “generosity” is probably warranted considering how low interest rates are) would put the S&P 500 all the way down at 1408 vs. its April close of around 2065.

You need to login to view the rest of the content. Please . Not a Member? Join Us

Please Login to Comment.

You seem to show interest in the product. We have a special bargain offer just for you please click on this link to access the discounter. Enter vipoffer to access the page.

 

Get a FREE 7 day trial to our exclusive small cap content