80-20 Investor Best of the Best Selection – July 2021 Update

Commentary

Of the 30 funds in June's BOTB, 17 funds have retained their place in July's selection. The chart below shows the performance of the BOTB against a benchmark that is calculated using the respective sector averages for each fund in the BOTB and assuming the same asset mix.

What it highlights is how the markets shift in inflation expectations, following the US Federal Reserve's policy meeting on 15th June, impacted markets. As described in July's monthly newsletter, the reflation trade lagged portfolios focused on growth stocks in the second half of June. Given the BOTB's focus on value/cyclical assets that is why we saw the BOTB lag from the 15th June onwards (as shown above). Of course, this is only a two week period and 80-20 Investor focuses on momentum over a longer time period than that.

Nonetheless, the recent repricing of markets has had an impact on this month's BOTB.