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Eric Cinnamond's new fund Palm Valley Capital fund (PVCMX)
Good question, and I suspect that Mark is about right. Mr. Cinnamond is, beyond any reasonable question, a very talented stock selector. He's also adamantly unwilling to pay more for stocks than he thinks they're worth. He probably one of 10 or 15 managers left with an absolute value orientation; the Fed killed off the rest by pouring in stimulus any time the market threatened to dive.
As of 9/30, he owned seven stocks and was maybe 7% invested. Those seven have outperformed their benchmark but the portfolio, as a whole, is up just 1.3% since launch on April 30.
I suppose the best way to use Palm Valley is the same way you'd use a hedge fund. It would be a 10% position that's uncorrelated with the market and likely to offer a substantial buffer when things turn south. In the meantime, it modestly outperforms an ultra-short bond fund (MINT or RPHYX, for examples).
Comments
Good question, and I suspect that Mark is about right. Mr. Cinnamond is, beyond any reasonable question, a very talented stock selector. He's also adamantly unwilling to pay more for stocks than he thinks they're worth. He probably one of 10 or 15 managers left with an absolute value orientation; the Fed killed off the rest by pouring in stimulus any time the market threatened to dive.
As of 9/30, he owned seven stocks and was maybe 7% invested. Those seven have outperformed their benchmark but the portfolio, as a whole, is up just 1.3% since launch on April 30.
I suppose the best way to use Palm Valley is the same way you'd use a hedge fund. It would be a 10% position that's uncorrelated with the market and likely to offer a substantial buffer when things turn south. In the meantime, it modestly outperforms an ultra-short bond fund (MINT or RPHYX, for examples).
David