Refresher: Close Colleagues Investment Thesis
At the heart of the investment thesis for this fund is a commitment to balancing purpose with performance, rigorously analyzing opportunities to deliver superior returns while staying true to our mission-driven goals. Consistent with the MissionX Fund, focused on funding transformational training and development of future leaders, or the Social Impact Fund, aiming for long-term returns with profound societal benefits, my investment philosophy is anchored in a few core tenets:
- Purpose-Driven Capital – I believe that investments should serve not only to grow capital but also to contribute positively to society and the broader economy. This approach guides my choice of sectors, companies, and projects, always balancing financial returns with ethical considerations.
- Long-Term Thinking – By focusing on ultra-long holding periods (often 20 years or more), I aim to capture the full potential of compounding growth. This strategy allows us to endure market fluctuations and capture outsized returns, particularly in sectors undergoing transformational growth.
- High-Quality, Resilient Assets – Every portfolio I build is diversified across sectors and risk profiles, carefully selecting companies that demonstrate anti-fragility, resilience, robust management, and a clear competitive advantage.
- Dynamic Risk Management – I structure each sub-fund to accommodate different risk tolerances. This ensures we can capitalize on high-growth opportunities while maintaining a balanced exposure to more stable assets.
With these principles in mind, I established the Close Colleagues Fund as a multi-layered investment vehicle with three distinct sub-funds: Core, Growth, and Outsized Growth. Each sub-fund aligns with a specific risk profile and investment thesis, allowing us to manage risk dynamically while maximizing potential returns.
Fund Overview
Since its inception in January 2023, the Close Friend Fund has performed exceptionally well across all three sub-funds. Below, I break down the purpose and performance of each sub-fund, providing insights into our strategy and what has driven these impressive results.
Sub-Fund Performance Overview (as of 1st November 2024)
| Sub-Fund | Currency | Day Gain Value | Overall Gain % | Overall Gain Value | Market Value | Initial Costs |
|---|---|---|---|---|---|---|
| Core | AUD | 0.08% | 50.73% | 180,699 | 536,919 | 356,220 |
| Growth | AUD | 0.10% | 83.09% | 121,725 | 268,229 | 146,504 |
| Growth Plus | AUD | 0.15% | 98.86% | 56,173 | 112,993 | 56,820 |
| Totals | 0.10% | 67.78% | $450,245 | $1,114,531 | $ 664,287 |
Overall Fund Summary
The fund has performed robustly through a period of significant Global instability, growing by >58% greater than the Australian All Ords Index (the comparable index for Australian investors).
By ensuring that we are investing in the best in class companies, diversified across sectors, sizes of businesses, and risk profiles, we are able to demonstrate that we have handsomely beaten the market in this fund, which replicates the outperformance that we have demonstrated in the MissionX and Social Impact fund.
Core Sub-Fund: Building Stability and Consistency
The Core sub-fund is designed to serve as the backbone of the Close Friend Fund, targeting consistent, moderate growth by investing in quality assets with low to moderate volatility. With a cumulative gain of 50.73% since inception, the Core fund has performed steadily, fulfilling its objective to provide a stable foundation. Its holdings emphasize blue-chip companies and resilient sectors, ensuring long-term value without sacrificing security.
This sub-fund aligns closely with our mission-driven principles, as many of its investments are in sectors with both economic and social impact. For those investors seeking stable, predictable returns, Core provides a reliable anchor.
Growth Sub-Fund: Targeting High Growth with Moderate Risk
The Growth sub-fund is focused on capturing higher returns by investing in dynamic sectors that offer significant appreciation potential. With an impressive gain of 83.09%, Growth has outperformed expectations, underscoring the value of targeted growth strategies within diversified portfolios. This sub-fund includes companies that are either first movers or leaders in emerging markets, capitalizing on high-growth industries while maintaining moderate risk exposure.
Growth balances risk and return, making it suitable for investors who can handle some volatility in pursuit of superior returns. This performance demonstrates the fund’s ability to navigate complex markets and seize lucrative opportunities.
Growth Plus Sub-Fund: High-Risk, High-Reward Potential
For investors with an appetite for greater risk, the Growth Plus sub-fund is designed to pursue aggressive returns. Nearly doubling in value with a 98.86% gain, this sub-fund is composed of high-volatility assets selected for their potential to achieve outsized growth. Growth Plus is not for the faint-hearted—it’s a high-stakes investment with a targeted approach, benefiting from sectors poised for exponential growth.
This sub-fund appeals to investors who understand the trade-offs of volatility and are willing to accept short-term fluctuations for substantial long-term gains. Growth Plus represents the bold side of our fund’s thesis, aiming to maximize gains in speculative yet promising markets.
Reflections and Future Outlook
As we look forward, I am committed to maintaining our diversified approach while staying agile in response to market shifts. With economic and geopolitical changes on the horizon, each sub-fund is positioned to withstand volatility, leverage growth opportunities, and align with the broader mission of ethical, long-term investing.
The Close Friend Fund will continue to focus on industries that align with both financial growth and social impact, ensuring that every dollar invested drives value not only for our investors but also for society at large. By adhering to our principles of purpose-driven capital, long-term thinking, and dynamic risk management, we believe this fund can provide lasting value for years to come.
Final Thoughts
Thank you for entrusting us with your capital. As always, I am here to answer questions, discuss our strategy, and explore how we can continue to grow together. Stay tuned for further updates and insights into our investment journey.
Investing is not just about generating wealth; it’s about building a legacy. The Close Friend Fund is more than a portfolio—it’s a partnership in the pursuit of meaningful growth.
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