The March quarter saw the Watershed International Portfolio continue to substantially outperform its benchmark and deliver industry-leading returns.
One of the hallmarks of this portfolio is the conservative nature of its construction. The manager only invests in businesses with a sustainable competitive advantage, operating in industries with high barriers to entry and run by highly-regarded, proven management. Furthermore these businesses must meet the managers stringent qualitative filters in terms of high returns on shareholder’s equity, low gearing and growth levels in sales, earnings and dividends.
The quality and resilience of the underlying portfolio came to the fore in the tumultuous March Quarter, with stocks such as Amazon, Microsoft, Johnson & Johnson, Costco, PayPal and Nestle holding up far better than the broader market.
Highlights:
- Fell only 3.49% for the quarter compared to a benchmark that dropped 9.00% giving outperformance of 5.51%
- Portfolio fully invested in high-quality, International businesses most likely to weather the market turmoil and lead its recovery
- Portfolio up 4.42% so far in April (in absolute terms)