When we penned our review of 2022, we noted that much of the significant market action had been in sectors that we don’t have direct exposure to.
The energy sector was the clear standout performer of the year, benefiting from high prices following Russia’s invasion of Ukraine. The finance sector also rose as interest rates increased from nothing to something. The absence of these sectors from the portfolio that we select on behalf of our clients is a deliberate choice.
The Evenlode approach requires certain business characteristics, most notably high returns on capital and consistent free cash generation. Energy firms and banks are each, in their own way, capital intensive businesses and do not naturally fit with our investment style.
---
Please note, these views represent the opinions of the Evenlode team as of 29th March 2023 and do not constitute investment advice.
Past performance is not a reliable indicator of future results. The value of investments can go down as well as up, and investors may not get back the money they invested. Current forecasts are provided for transparency purposes, are subject to change and are not guaranteed.
For more information visit
evenlodeinvestment.com