Live From the Desk

Arb Fund turns 1!

Happy Anniversary! The Vertex Arbitrage Fund had its 1st birthday on October 31st! The first year return was 4.00% (Class F), in line with our expected range of short-term rates plus 4-5%, albeit at the lower end of the range. The monthly returns for the first year were as follows: Jan Feb Mar Apr May Jun Jul Aug Sep Oct …

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VXFD & VGF – the lowdown

Wherefore art thou QE? Much like a long-term relationship you wanted to end – and now miss, once it’s over – quantitative easing is done. Fear not, though, life will go on… So, what to do in a market without stimulus? In the Vertex Fund and Vertex Growth Fund we’ve been adding equities in Europe …

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Vertex Value Fund – quick ‘n dirty

The back drop for US equities is perhaps the best we’ve ever seen. The 10-year bond trades at 50 times earnings with no growth. Stocks on the other hand are trading at 14 times earnings and company earnings are growing. Stocks are poised for a major multiple-expansion, but even without that the earnings yield is …

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Blimey!

As previously reported, our holdings in European banks were sold earlier in the year. In recent months, share prices have dropped in the Royal Bank of Scotland and Barclays due to a weakening pound and the growing uncertainty around the Scottish referendum. Earlier this month, the Scottish vote gave us an opportunity to re-establish a …

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August Discount!

The last few days of July saw a general market decline, with some of our companies in the Vertex Managed Value Portfolio and Vertex Value Fund missing on quarterly earnings expectations. Mattel, Unisys, Wellcare, Genworth, Goodyear and Montpelier RE fell as much as 20% while many more declined on fears of a weak housing market …

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