The Tralucent Global Equity Fund and You

The inception of the Tralucent Global Equity Fund:

The Tralucent Global Equity Fund (TGEF) was official created on March 31, 2020.

The TGEF was created through the consolidation of holdings from the majority of Tralucent’s separately managed accounts.

How this looks to you and your accounts:

Account holders were given an equivalent number of units of the TGEF to the value of their holdings as at March 31, 2020. At inception, units of the fund were valued at 10 CAD per unit.

Tralucent Management Contribution:

Tralucent management also contributed the TGEF.

This means that management’s interests are now 100% aligned to those of its clients.

Funds contents:

The TGEF now owns 165 equities from around the world. The list has been compiled and shared separately with the money buddies of Tralucent.

The nature of what you own:

These securities are – with very few exceptions – established companies from around the world, from various sectors and industries, and are forces to be reckoned with. We believe due to the strong management and the competitive nature of these companies, these companies will more than likely stand the test of time and be around fifty years from now.

Greater diversification:

As a shareholder of the TGEF, you are now an owner of 165 businesses from around the world. Previous to owning shares of the TGEF your portfolio was already quite diversified. But now, as TGEF holders, you are even more diversified than before!

As you have heard us say time and again, a well diversified portfolio gives us the confidence to say that it is inconceivable to think that your money would ever go to zero. Now, with this greater lever of diversification experienced as holders of the TGEF, it is even more superfluous to have thoughts of your portfolio ever going to zero.

TGEF performance:

The TGEF appreciated 16.13% over the quarter on a MWRR net of fees. 

2020 may be remembered as the time the world was mired with lockdowns associated with the Coronavirus. However, after seeing dramatic losses in the first quarter of the year, the markets rebounded sharply after investors realized that the world will not come to an end after all.

Tralucent’s management efforts:

The most notable act on our part has been our refusal to cave into a bearish outlook. We steadfastly continued to look beyond the lockdown and remained convinced that we as mankind will not only survive the pandemic but thrive.

Our outlook into the future:

Most of our money buddies are quite familiar with our glass is half-full approach to investing. We remain in that camp. The world will slowly emerge from the lockdowns, methodically learn how to handle the virus, and go on to higher highs. After all, humanity has survived bubonic plagues, HIV, and the Spanish Flu just to name a few.

The world has always belonged to the ferociously competitive. Now that we have reduced the number of individually managed accounts – such that most accounts are represented in the TGEF – it will be even easier for us to direct our focus to identify and buy those ferociously competitive companies from all over the world, in various sectors, and that are forces to be reckoned with.

Our advice:

It remains the same. You should either maintain your TGEF holdings or increase your holdings at every opportunity that you have.

Our excitement: 

We are thrilled that the TGEF has our interests and performance 100% aligned with our investors. We will continue to strive for higher gains through our enhanced focus and use of shorting strategies for poorly run companies. We will talk of such strategies in future commentaries.

Please reach out:

As always, we are more than welcome to discuss any of this further via a telephone call or Zoom chat. Please do not hesitate to ever reach out.