Investment Recap Second Quarter 2020

Our first quarter letter emphasized the investment opportunities created by the sudden and sharp market sell off in the wake of the Covid-19 pandemic. We were properly optimistic and opportunistic and indeed market indexes were up over 20% for the second quarter and our stocks did even better. While stocks have experienced a V-shaped recovery not all sectors of the economy have done well and we anticipate further monetary and fiscal policy stimulus as well as success with a pharma solution, i.e. vaccination, and treatments. During the quarter and especially this week small cap stocks have outperformed. This group has been in a two-year Bear Market and a rotation to a neglected sector is typical of the start of a new overall Bull Market