Friends and Fellow Investors:

For July 2017 the fund was down approximately 0.9% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 2.1% while the Russell 2000 was up approximately 0.7%. Year to date the fund is down approximately 16.7% net while the S&P 500 is up approximately 11.6% and the Russell 2000 is up approximately 5.8%. Since inception on June 1, 2011 the fund is up approximately 90.1% net while the S&P 500 is up approximately 109.4% and the Russell 2000 is up approximately 83.2%. Since inception the fund has compounded at approximately 11.0% net annually vs 12.7% for the S&P 500 and 10.3% for the Russell 2000. (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; meanwhile I continue to waive the annual management fee until we regain our high-water mark.This has been an awful year for us, and yet the fund has been down roughly this much before and

This has been an awful year for us, and yet the fund has been down roughly this much before and subsequently went on to recover that downdraft and set a new all-time high NAV, and I have every intention that it will do so again. This year’s terrible performance has been almost entirely due to our short position in Tesla, whereby despite having an overwhelming number of facts on our side (detailed, as usual, below) the stock is up 51% this year. Meanwhile, as a value investor it’s currently tough to find any companies cheap enough to buy; Howard Marks from Oaktree Management did a great job this month summarizing how incredibly overvalued this market is-- here’s the link and here are the highlights:

See the rest of the letter below:

This content is exclusively for paying members. Access all of our top quality content by signing up below.

If you are subscribed and are having an account error, please clear cache and then cookies if that does not work email and we will get back to you as quick as humanly possible.

Register New Account

Choose your membership level

Choose Your Payment Method

Are you a smart person?

Congrats you are targeted for a special offer for being a loyal and sophisticated reader.

Our 60+ picks since we have started the publication have returned an impressive 27.9% annualized  – that is not a backtest and those gains could have been yours! 

Want more ideas?

We have an exclusive 40% off coupon (our most ever)

Use code VIP20 at checkout or click on the button.

Limited time offer only expires 3/31/2030 or next 20 subscribers whichever comes first – please do not share this discount with others

*Return is calculated using every stock profiled on our site from time of publication and using a profit target of 100% and a trailing stop loss of 25%. Past results are not an indicator of future returns