* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Click to download IMVA Opportunity March 2014
Foreign direct investment in Iran wikipedia , lookup
Special-purpose acquisition company wikipedia , lookup
Private equity wikipedia , lookup
Investor-state dispute settlement wikipedia , lookup
Corporate venture capital wikipedia , lookup
Private equity secondary market wikipedia , lookup
International investment agreement wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Investment banking wikipedia , lookup
Early history of private equity wikipedia , lookup
Environmental, social and corporate governance wikipedia , lookup
Private money investing wikipedia , lookup
Socially responsible investing wikipedia , lookup
Mutual fund wikipedia , lookup
Hereford Funds-IMVA Opportunity Fund March 2014 March 2014 Investment Review The Ocwen ecosystem (ASPS, AAMC, HLSS, OCN, RESI) have all had the privilege of being dissected on the front page of the New York Times in the past couple of months. Mortgage servicing is a difficult business because there are very few happy customers, and some mortgages are foreclosed. Nonetheless, I believe that Ocwen is a better servicer of difficult mortgages than any other industry participant, bank or non-bank. Their proprietary processes and analytics reduce foreclosures, often through loan modifications, and ultimately help homeowners. So, I (we) are betting that Ocwen’s business fundamentals will eventually trump headlines. Other positions in the news include Freeport McMoRan Copper & Gold (FCX), Luminex (LMNX), and 3D Systems. I continue to have high expectations for Luminex over the next several years. The company plans a very promising product launch in the second half of this year that could be a substantial catalyst for the shares, in my opinion. I also suspect the short sellers may be surprised if management can deliver on earnings expectations. 3D Systems has also been in the news a bit. In my last quarterly letter, I predicted that we would pay “a pound of flesh” to stay invested in DDD, and Shylock would be envious of the penalty paid by DDD holders this quarter. DDD went from $96 on January 3rd to $56 on March 21st; management’s decision to spend more on R&D is partially responsible (thus reducing 2014 EPS), but the stock was expensive and a ripe target for short sellers. I believe in the management team and suspect their R&D investments will be very profitable over the next couple of years. Finally, I initiated a position in Endeavor International. END is a turnaround story and not without some risk due to their leverage; I am betting they can improve their execution and produce better cash flows than they have in recent years. Key Information NAV A Shares (31/03/14): $97.94 Total Fund Size: $12.53 mil Strategy Assets: $ 238.01 mil(a) (b) Fund Launch Date: 31-Jan-14 Monthly Performance (%) Jan-14 Feb-14 Mar-14 N/A -0.8 -1.3 N/A 4.6 0.8 N/A 4.6 0.8 Hereford Funds-IMVA Opportunity Fund S&P 1500 Index(d) S&P 500 Index(d) YTD -2.1 5.4 5.5 Period Performance (%) YTD -6.9 1.9 1.8 IMVA Opportunity Portfolio(c) S&P 1500 Index(d) S&P 500 Index(d) 1 yr 28.1 22.0 21.9 2 yr 28.1 18.1 17.8 3 yr 15.9 14.6 14.7 4 yr 21.9 15.2 14.9 5 yr 29.9 21.6 21.2 10 yr 14.9 7.7 7.4 Since Inception 31/03/99 Cumulative Annualised 255.3 8.8 111.8 5.1 92.5 4.5 IMVA Opportunity Portfolio(c) vs. S&P 1500(d) & S&P 500(d) Ten Years Ending 31/03/14 500 Start of Hereford Funds-IMVA Opportunity Fund 31-Jan-14 350 450 300 400 350 250 300 200 250 150 200 100 150 50 100 0 50 IMVA Opportunity Portfolio Fund's TopTen Holdings Altisource Ptfl Solns Reg. Shs Luminex Corp. 3D Systems Corp. Ocwen Financial Corp. Apple, Inc. Intrepid Potash Inc. Freeport McMoran Copper & Gold Anadarko Petroleum Noble Corp. Emerald Oil Inc. % NAV 7.51 7.40 6.39 5.88 4.33 4.15 4.11 3.14 3.13 3.07 S&P 1500 S&P 500 Fund's GICS Sectoral Breakdown Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities [Cash] Total % of assets 1.9 2.6 23.1 17.1 13.8 5.1 17.9 10.4 --8.1 100.0 Investment Objective The investment objective of the Hereford Funds-IMVA Opportunity Fund is to provide capital appreciation over a multi-year investment horizon by investing primarily in a diversified portfolio of publicly traded equity securities of US-based companies, which hold unique opportunities in the opinion of the Investment Manager. Potential investments comprise small, mid, and large capitalization companies; growth and value companies; and special situations, including non US-based companies, which are listed on a US exchange. The strategy is highly concentrated and appropriate only for risk-tolerant, long-term investors who can accept the potential for materially greater volatility than the broad market indices. The indicative benchmarks are the S&P 1500 and the S&P 500 Indices. Risk Profile Fund Codes Bloomberg: ISIN: Reuters: Sedol: Valoren: WKN: HFIMVOALX* LU1022309220 N/A BJ625V8 23467814 A1XCJ3 (e) Since Inception (31/03/99) - 31/03/14 Volatility Sharpe Ratio Information Ratio Tracking Error Beta Alpha Reference Strategy 25.67 0.33 (listed below benchmark) (listed below benchmark) (listed below benchmark) (listed below benchmark) S&P500 15.44 0.16 0.34 17.49 1.24 7.12 S&P 1500 15.56 0.20 0.31 17.14 1.26 6.19 * Share Class A Fund Details Dealing day Dividends Investment Manager Management Company Custodian Legal Advisers Auditor Daily None: income accumulated within the fund Investment Management of Virginia, LLC, 919 E. Main Street, Suite 1600, Richmond, VA 23219, USA VPB Finance S.A., 26 Avenue de la Liberté, L-1930 Luxembourg VP Bank (Luxembourg) S.A., 26 Avenue de la Liberté, L-1930 Luxembourg Elvinger, Hoss & Prussen, 2 Place Winston Churchill, L-1340 Luxembourg Deloitte Audit S.à.r.l., 560 Rue de Neudorf, L-2220 Luxembourg Annual Management Charge Share Class A(f) Share Class L(g) 1.25% 0.75% Minimum Investment Share Class A Share Class L $100,000 initial; $10,000 subsequent $100,000 initial; $10,000 subsequent Order Transmission / Information Original Applications To: VPB Finance S.A. attn. Fund Operations / TA-HFF P.O. Box 923 L-2019 Luxembourg or, for transmissions via courier service, 26, avenue de la Liberté, L-1930 Luxembourg Subsequent Applications Only Via Facsimile: VPB Finance S.A. attn. Fund Operations / TA-HFF Fax : (+352) 404 770 283 Tel: (+352) 404 770 260 e-mail: [email protected] (a) This figure refers to the approximate total assets invested in the reference strategy as of 31/03/14. The figure includes $12.53 million in assets (Hereford Funds-IMVA Opportunity Fund) and $207.28 million in assets managed directly by Investment Management of Virginia, LLC ("IMVA" or "the Investment Manager") and $18.20 million in assets managed by other firms based upon models provided by the Investment Manager. The $207.28 million managed directly by IMVA comprise those accounts in the Opportunity Portfolio composite (see www.imva.net), as well as “Special” Opportunity Portfolio accounts, which are excluded from the composite for reasons/variances, including but not limited to these: they have different weightings; client restrictions have been imposed; they are wrap accounts; they do not own all Opportunity Portfolio positions, or they own additional positions. Model assets have been excluded from the definition of the firm for GIPS purposes. (b) The Hereford Funds-IMVA Opportunity Fund was funded on 31/1/14. The first trades were executed on 3/2/14. (c) Data and graph depict IMVA Opportunity Portfolio composite returns through January of 2014 and Hereford Funds-IMVA Opportunity Fund Class A thereafter (net basis). Historical net performance of the IMVA Opportunity Portfolio composite (the Reference Strategy) reflects modeled fees and expenses typical of Hereford Funds-IMVA Opportunity Fund Class A (1.25% fee + 0.25% expense). Fund follows substantially the same parameters as the Reference Strategy, although the Fund has a 10% constraint for individual positions and a 40% limit for the top five names (IMVA's Opportunity Portfolio has no such constraints). Performance presentation is incomplete without accompanying footnotes as shown at www.imva.net. (d) Total return including dividends. (e) Source: PSN database – All numbers are presented gross of fees and expenses. (f) Share Class A is tax transparent in Germany and has been granted Reporting Status by HMRC as of 31 January 2014. (g) Share Class L is tax transparent in Germany and has been granted Reporting Status by HMRC as of 31 January 2014. This document is for information purposes and internal use only. It is neither an advice nor a recommendation to enter into any investment. Investment suitability must be determined individually for each investor, and the financial instruments described above may not be suitable for all investors. This information does not provide any accounting, legal, regulatory or tax advice. Please consult your own professional advisers in order to evaluate and judge the matters referred to herein. An investment should be made only on the basis of the prospectus, the annual and any subsequent semi-annual-reports of HEREFORD FUNDS (the "Fund"), a société d'investissement à capital variable, established in Luxembourg and registered under Part I of Luxembourg law of 20 December, approved by the Commission de Surveillance du Secteur Financier (CSSF). These can be obtained from [the Fund, 26, avenue de la Liberté, L-1930 Luxembourg or from VPB Finance S.A., 26, avenue de la Liberté, L-1930 Luxembourg and any distributor or intermediary appointed by the Fund]. No warranty is given, in whole or in part, regarding performance of the Fund. There is no guarantee that its investment objectives will be achieved. Potential investors shall be aware that the value of investments can fall as well as rise and that they may not get back the full amount invested. Past performance is no guide to future performance. The information provided in this document may be subject to change without any warning or prior notice and should be read in conjunction with the most recent publication of the prospectus of the Fund. Whilst great care is taken to ensure that information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omission or for future returns. This document is intended for the use of the addressee or recipient only and may not be reproduced, redistributed, passed on or published, in whole or in part, for any purpose, without the prior written consent of HEREFORD FUNDS. Neither the CSSF nor any other regulator has approved this document.