FMA Magazine 2021 - 2023

2022 Investment Rationale
With a difficult year for the market, 2022 saw the value of the
portfolio fall to $490,707 at the end of the year. This year also
marked a shift to investments beyond equities and reduced
exposure to the TMT sector, as the Fund felt that moving into
fixed income investments and alternative assets would
protect our capital in the long run, allowing us to rotate back
into exceptional companies sourced by Fund members when
presented with the right opportunity.
The Fund deployed cash into multiple fixed income
investments throughout the year to take advantage of
elevated interest rates while investing in a risk-free asset that
could serve as a hedge against inflation. To further protect
cash and enter positions in gold and silver, the Fund bought
PHYS and PSLV, respectively.
The Fund invested in six new businesses in 2022. The first of
these were American Tower, American Waterworks, Intuit,
and Intuitive Surgical. The thesis for American Tower
revolved around the company's ability to capitalize on 5G
growth and the favorable economics of the towers it
operates. The Fund invested in American Water Works due
to its diversified revenue streams allowing for recession
resilience, positioning to fill gaps in the public water
infrastructure, and prospects for tailwinds from increased
capital investments over the next ten years.
Next, the Fund invested in Intuit, as it saw a strong business
with a significant moat in an industry that is difficult to enter,
improving fundamentals, diversified product offerings, and
connected ecosystem. The Fund also felt that the Mailchimp
acquisition would accomplish two of the company's strategic
“Big Bets”: becoming the center of small business growth and
disrupting the small business mid-market. Lastly, the Fund
bought Intuitive Surgical due to a thesis on robotic surgery
growth and moat in its industry but exited the company by
the end of the year.
After these initial investments, the Fund took a position in
Barrick Gold Corporation due to the company's ability to
scale and exceptional management, along with our positive
outlook on the company's strategic capital allocation
decisions. ExxonMobil was our final investment in 2022. The
Fund felt confident in this business due to its status as a
blue-chip name in an outperforming sector and its ability to
capitalize on rising oil demand.
2022 Investment Decisions
February:
Bought AMT
Bought AWK
Bought INTU
Bought ISRG
Sold MA
Sold MPW
Decreased position in ARE
Decreased position in BJ
Decreased position in CRM
Decreased position in JNJ
Decreased position in NVDA
March:
Sold JNJ
May:
Bought GOLD
Decreased position in CMCSA
Decreased position in CRM
September:
Sold ARE
Sold CMCSA
Sold ISRG
Sold KKR
October:
Bought PHYS
Increased position in GOLD
Sold CRM
Sold NVDA
Decreased position in AMT
Decreased position in BJ
Decreased position in EL
Decreased position in INTU
Decreased position in MSFT
November:
Decreased position in WM
December:
Bought PSLV
Bought XOM
Increased position in PSLV
Sold EL
76 FMA 2021-2023 MAGAZINE
2022 Performance Summary