We are happy to report another positive performance for the 4th quarter. This marked the 7th consecutive positive quarterly return for our Separately Managed Accounts Composite (individual account performance may vary). The composite return for the year 2021 was 31.7%, outpacing all major indices. We are proud to have stuck to value investing amidst a highly speculative environment, while providing satisfactory returns for our clients. As we look forward, we like how our portfolio is positioned relative to the overall market: We continue to invest in companies we believe to be fundamentally sound and trade at reasonable valuations.
2021 has been an unusual year, to say the least. First it was Delta, and then it was Omicron. Inflation reached the highest level in decades. Speculation ran rampant: meme stocks, SPACs, cryptocurrencies, NFTs, to just name a few. We’ve discussed these speculative excesses in our past newsletters. If the recent price actions in the market were any indication, these bubbles are in a very painful process of bursting, which we’ve repeatedly warned about. We sincerely hope our clients have heeded to at least some of our warnings. Looking forward, to see what’s potentially in store for 2022, we’ll begin the discussion by assessing the overall economy.