Librarian Capital Monthly Update - May 2021

Portfolio Update

About the Portfolio: This is a long-only strategy that invests in global equities. The investment style is fundamentally-oriented, concentrated and long-term. The portfolio holds 15-25 high-quality companies in the U.S. and Europe, usually for multiple years. It has been in existence since late 2008, and is the main vehicle for the manager’s personal net worth.

Summary

• Our long-only portfolio gained 1.7% in USD in May, but was down 1.2% in GBP, 40 bps behind MSCI World; year-to-date gain was 10.0% in GBP, 2.5 ppt ahead

• The portfolio is now up 61.5% since the start of 2019, more than 13 ppt ahead of MSCI World, and is ahead of other indices and leading “quality” funds

• Top May contributors were Intuit, BofA, Raytheon, Charter and Altria; detractors were Mastercard, Visa, Microsoft, PayPal and Estée Lauder

• In May we completed our sale of JP Morgan, and also exited L’Oréal; we initiated a position in Alphabet and added incrementally to Microsoft

• At the end of May, the portfolio held 20 stocks, …