We’re pleased to report that the The Samurai Fund (TSF) is up 8.5% year to date! Unfortunately, the S&P 500 is up 9.9% thereby underperforming the broader markets by 140 basis points. On the positive side, there has been 0 turnover in the fund since inception on January 1, 2010 which means no trading fees. Furthermore, we have not had to hire employees to run the fund meaning that we are saving millions more a year in salary costs.
Our outlook for the stock market is rosy, thanks to Ben “Making It Rain” Bernanke and his desire to inflate all asset classes with QE2. We believe in the American consumer’s ability to consume with greed again, and we are strategically positioned with names such as Samuel Adams (SAM, +76% YTD), Monster Worldwide (MWW, +14%), and Lenar Corp (LEN, +24% YTD). Creating bubbles is a good thing, so long as we recognize we are in a bubble. We at TSF hear you loud and clear Mr. Bernanke and will ride your donkey into the sunset!
Thank you shareholders for investing in our fund. We will try and make up for our underperformance by continually doing absolutely nothing. Please revisit our investment philosophy.
The Samurai Fund Investment Team
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