“War is brutal, and squalid, and terrifying. Tweet your maps, and your force analysis, and your flags, but never forget the core of war is shattered human beings bleeding out into the dirt.”
By Jason Lesh, Managing Principal
Let me first begin by offering that the humanity of the current developments in Ukraine are not lost on us. While we have been deeply focused on portfolios and the risks and opportunities that we face due to the current conflict, we are saddened for the people of Ukraine and that we find ourselves in this situation. As a global community, I wish we could learn from our past mistakes. My youngest son asked me this morning "how does killing each other solve problems?" To some questions, I do not know the answers.
Our portfolios have been anything but conventional. We have steered clear of United States growth and assets which have been overvalued. We instead have focused on energy, commodities, and value-based companies with solid balance sheets and sound management displayed over decades. This approach has resulted in a massive out-performance when compared to the S&P 500 which is down roughly 10% on the year.
This conflict is an attempt at reshuffling global politics and the rules by which we interact with each other: Russia is not comfortable with the Western progress since the fall of the Soviet Union. And while it will take time to understand the new landscape, one thing is for sure: volatility has returned. By this time, you know - volatility is our friend.
We own cash, low-risk government treasuries and hedges which we would be more than happy to deploy should opportunities present themselves. Be rest assured that we are monitoring the investments carefully and feel comfortable with the risk/reward of the current allocation.
If we may be of any assistance to you, please don't hesitate to reach out.
May our sons and daughters one day learn from history and help lead us to a more peaceful world.
Best regards,
