Daily archives: January 1, 2020

RDR Capital 2019 portfolio update (+21.1% in 2019 and since inception)

RDR Capital’s global portfolio is up 21.1% in 2019 and since inception (the portfolio was incepted on the 1st of January 2019). The total return of 21.1% is in GBP terms; in USD terms, the total return is 26.2%.

As discussed in our year-end 2018 note, we have liquidated our Middle East and North Africa (MENA) portfolio at the end of 2018 to focus our resources on the global portfolio, which has received significant additional funding at the beginning of 2019. Hence, we view it as appropriate to consider the date of inception as the 1st of January 2019. The strategy remains research-based value, with the flexibility to continue to hold strong performing investments despite being fully valued on a fundamental basis.

Strong year despite challenges in markets

Our global portfolio performed well in 2019 despite a challenging environment in markets where finding compelling value proved elusive. The largest contributor to our total returns was Diageo (DGE LN), our largest holding. We remain positive on Diageo as a core holding as it enters 2020 as our largest holding, for the second year in a row. Diageo is well positioned to capture growth in the global spirits market, especially in the US and some key Emerging Markets.