Performance update - June 2021

The Australian strategy delivered a return of 8.2% in the month of June, above the benchmark return (2.6%). The monthly performance of the strategy’s largest positions were as follows: Reece (15.3%), Fortescue Metals (4.0%), Afterpay (27.4%), Wisetech Global (13.1%) and Megaport (23.0%). For the 2021 financial year, the strategy produced a return of 49.6%, above the benchmark return (30.2%). The global strategy earned a return of 5.1% (AUD) for the month, above the benchmark return (4.7%). The strategy’s largest positions remain MarketAxess, DR Horton, Fraser Group, Masimo Corporation, Starbucks and Microsoft. For the 2021 financial year, the strategy produced a return of 30.6%, above the benchmark return (27.5%).

In this month’s insight, we show that over the past fifteen years, Australian founder-CEO firms have delivered stronger returns on capital with more conservative balance sheets and higher payout ratios than firms run by professionally hired CEOs.