Global Return Asset Management’s Q1 2019 Investor Letter

Global Return Asset Management is a value investing firm that utilizes long-only investment strategies concentrated on risk management. Its CEO is Elliot Trexler, who has more than 15 years of professional experience in the world of investing, which was best acknowledged by several awards he gained – “Best Fundamental Growth Investor”, “Hedge Fund Manager of the Year”, and “ Award for Excellence in Risk Analysis”. Prior to Global Return Asset Management, Mr. Trexler honed his investment acumen as a Senior Trader at Chicago Board of Options Exchange. The beginnings of his career in investing were in a real estate development and investment company where he was employed as an analyst. He graduated from Indiana University and attended the Indiana University Kelley School of Business.

The fund’s investment philosophy is centered around the concept that first it should be searched for all the possible reasons a stock could lose its value, after which it can be more precisely determined if the upside potential makes up for those risks. Recently, Global Return Asset Management has released its Q1 2019 Investor Letter, a copy of which you can track down below. In the letter, the fund reported a 19.3% return since the beginning of the year.

“Dear Friends and Partners,

In March we generated a net return of 1.4%.1 We ended the month with 18% of assets in cash and had a net market exposure of -32%.

Year-to-date we’ve gained 19.3%, net.1

Comments on Cash

In Q4 2018, our cash balance was the lowest it’s been in four years. In December we were fully invested and had no cash. (Our current cash balance is from continued inflows and the reduction of several holdings.)

Some investors, including me, wish we were always fully invested and had no cash balance.It’s assumed that “…if we did this well with a cash balance, imagine how well we’d do if all of our cash was invested.”

But Q4 2018 and Q1 2019 demonstrate why we’ll keep cash when necessary -we believe we can generate higher risk-adjusted returns by waiting to invest until the right opportunities become available.”

 

You can download a copy of Global Return Asset Management’s Q1 2019 Investor Letter here:

Global Return AM. Q1 2019 Results.