Update from the CIO

Today we posted a post current tax NTA of $3.44, up from $3.36 last week. Our share price is weaker today with coronavirus fears gripping global equity markets. Confirmed worldwide cases rose to 78,919 with 2,466 deaths after China’s Hubei reported 630 new cases and 96 deaths on Friday. In times of fear, investors will always sell equities and go to the safety of cash. HM1 will not be immune to such investor action, as our portfolio is a global equities portfolio. 

Tesla resumed its 'up-crash' last week, rallying some 15% to again be back above the $900 level. In June last year, Tesla shares were exchanging hands at just $200. Another of our conference recommendations, Floor and Decor, which operates as a multi-channel specialty retailer of hard surface flooring and related accessories reported earnings and rallied some 8.5% over the week. 

One of our core holdings also reported during the week, and as with Floor and Decor, its surpassed analyst expectations, and we saw a favourable price reaction in this stock as well.

As always, we remain in regular contact with our managers. Some are quite nervous about coronavirus, as we all should be. There remains so much unknown about this virus that we should expect cautionary investor behaviour to continue for the time being, at least until we know what we are dealing with.