Hi Vinod,
Dollar cost averaging over time is a sensible strategy for a wide range of investors. Hyperion have done a solid job with their growth fund over the medium term, although it must be highlighted that short term performance has been weak, 1 year -11.7% which is around 15% below the benchmark. This would be a result of bond yields rising which has put intense pressure on growth focussed companies, and it is clear they have not pivoted in a timely manner into stocks that perform better in this environment, which can still be growth companies, but more profitable growth companies.
Tesla is their largest holding, a huge 13.1% of the portfolio, which seems very risky in our view given 1. Competition in the EV space & 2. The size they are willing to hold in such a stock. Looking at their top 3 stocks shows they account for 36.7% of the portfolio, which is incredible concentration. We are high conviction managers, but this takes it to another level!
Over the past 3 years, HYGG has added 9.6% per annum while the Market Matters International Equities Portfolio has returned 16.63% per annum. We expect to open up the International Equities Portfolio for direct investment by 1 July via Market Matters Invest. Watch for updates here in the coming months.
