In the dramatic theatre of business, relentless motion and constant change make an exhilarating narrative. At SaltLight, we approach investing as a serene nature documentary filled with patience and thoughtful observation. In our view, frequent portfolio reshuffling is not a badge of honour, but rather restlessness. Each portfolio adjustment is a step into murky water, exchanging the known for the unknown, and as such, we set a high threshold for action.
Instead of melodies and rhythms, our composition unfolds on a different stage. We see ourselves as treasure hunters, sifting through a vast terrain, discovering hidden opportunities, and appraising their potential for reward. Over time, as we collect these coarse rocks, we observe, adjust, and refine our approach
18 May 2023 PDF Version Dear Co-Investor SaltLight SNN Worldwide Flexible Fund (Class A1) Period Return 2020 (starting 11 November 2020) +3.42% 2021 +18.09% 2022 -33.58% *** 1Q +11.69% During the past quarter, our fund’s Class A units increased by 11.69%. This growth was largely… Read More »SaltLight SNN Worldwide Flexible Fund – Investor Letter 1Q23
In this second completed year of our flagship fund, the purpose of these letters is to inform our co-investors about what we are trying to achieve and how are we trying to do it.
We set our investment process to what the world could look like in 2028. We are more concerned with the ‘two birds in the bush’ so to speak. And then extending the adage further: what is the price implying to catch these plump birds.
We feel the need to say: ‘Cheer Up!’ – this moment too shall pass. In the face of uncertainties, persistently negative headlines, and downbeat sentiment, it is always more helpful to lengthen perspective when others are shortening theirs.
For us, these turbulent periods are somewhat cathartic for our investment process. Investing mistakes are usually made in the ‘good times’ when the price one pays can diminish the returns on even the most wonderful businesses because future price expectations are based on a hopeful set of outcomes rather than probabilistic realism.
Given your and our long-term focus, these short-term price moves over a month, quarter or even a year concerning our long-term investment strategy should be of little significance.
The second quarter of 2021 would probably rank as the most ‘reflationary’ economic environment that we’ve seen in decades.
We’ve utilised this buoyancy to reposition the portfolio outside of South Africa and into global opportunity sets that we’ve been working on over the last few years