A Repeatable Process at Work
Market
uncertainty created opportunities for the portfolio manager to build ownership
in durable, cash-flow-producing businesses at more attractive prices. The Pool
moved from 18.7% cash to 2.7% as capital was deployed, while
investments such as Amazon demonstrated how buying strong businesses during
periods of pessimism can create meaningful wealth over time.
During
the quarter, the Pool sold CVS Health after nearly six years of ownership. The
investment generated $43.7 million in total gains and a total return of 79.3%, but following a significant recovery in its share price, the
portfolio manager believed other opportunities offered more attractive expected
returns going forward.
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