The Selective Opportunity Fund Garners Top 1% Ranking from Morningstar
This interview was originally published on SumZero. Click here to see the interview in its original format.
Christopher Devlin founded Selective Wealth Management in 2009, after a brief stint as a nuclear engineer. The firm's investment methodology focuses on investing in companies with six common characteristics: 1. Lasting Products of Services, 2. Durable Competitive Advantage, 3. Highly Profitable, 4. Prudent Debt Levels, 5. Skillful Reinvestment of Earnings, and 6. World Class Management. …
Belief in the Efficient Market Hypothesis has had an outsized impact on financial markets as the popularity of passive investment strategies, such as ETFs and Index Funds, has exploded over the last three decades. If the EMH is true, then Selective cannot skillfully identify stocks that are mispriced and add value for clients.
"Overall, we were extremely pleased with the performance of our Selective Companies throughout 2017..."
Often times when analyzing an investment there is a single point of consideration that can make or break the thesis. Due to the high price multiple the crux of the Facebook thesis hinges on one factor: How big can the company get?
In 2016 we posted a healthy gain of 18.6% compared to 12.0% for the S&P 500. We were very pleased with the absolute and relative performance.