11/14/2022

Signet Capital Management Limited

Signet Global Leaders Fund (previously Signet FFF Equity Fund) gained +2.66% for the month of October .

Portfolio comments for October 2022
The equity markets recovered in October amid better-than-feared corporate earnings, positive performance of selected real economy sectors (including industrials, healthcare sector and materials) and early expectations of interest rate hiking cycle slowdown in 2023. The Fund continues to maintain conservative positioning given the uncertain macroeconomic environment but opportunistically added to selected positions post negative share price reaction on Q3 2022 earnings. The largest contributors to the Fund’s performance were HCA Healthcare, NVIDIA, Adobe and Airbus. On the negative side, Meta Platforms and Amazon detracted from the performance. Meta Platform demonstrated a sustainable top-line progression despite tough comparisons with a period 12 months ago but disappointed on operating and capital expenses amid increasing competition and new privacy rules. Amazon also disappointed on the growth of its cloud division and slow progress on capacity rationalization. Based on our fundamental analysis and discussions with industry experts we concluded that the challenges that these companies face are temporary in nature and added to both positions on share price weaknesses.
Signet Global Leaders Fund

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