Letters
At Lyrical, we support our clients with frequent, insightful communication
Value investing was all the rage in the aftermath of the 1990s tech bubble. As technology and overvalued “nifty fifty” stocks imploded and took down the S&P 500, value stocks soared for years.
2022 was a mixed year. Most significantly, it was the worst down year for the S&P 500 since 2008. But we ended the year with strong fourth quarter performance and outperformed the S&P 500 for the second year in a row.
Our international portfolio outperformed the MSCI EAFE index by 220 bps in 2022. For the first three quarters of the year we were slightly ahead of the index, before surging in the fourth quarter, with a +19.8% return, compared to +17.3% for the MSCI EAFE.
The Global Value portfolio outperformed the MSCI World index by 290 bps in 2022. For the first three quarters of the year, the portfolio was slightly behind the index, before surging in the fourth quarter, with a +15.1% return, compared to +9.8% for the MSCI World.
The Global Value portfolio outperformed the MSCI World index by 290 bps in 2022. For the first three quarters of the year, the portfolio was slightly behind the index, before surging in the fourth quarter, with a +15.1% return, compared to +9.8% for the MSCI World.
In 2021, the U.S. Value Equity-EQ and U.S. Value Equity-CS composites produced gross returns of +30.5% (+29.6% net) and +32.1% (+31.0% net), respectively. Comparatively, the S&P 500 and S&P 500 Value produced total returns of +28.7% and +24.9%, respectively.
In 2021, the International Value Equity composite produced a gross return of +16.9% (+16.1% net). Comparatively, the MSCI EAFE and MSCI EAFE Value produced total returns of +11.3% and +10.9%, respectively.
We had a good year, beating both the World and World Value Indices by around 100 bps, and we continue to think we are still in the early stages of a value upcycle
In 2020, the U.S. Value Equity-EQ and U.S. Value Equity-CS composites produced gross returns of +13.6% (+12.8% net) and +13.2% (+12.1% net), respectively. Comparatively, the S&P 500 and S&P 500 Value produced total returns of +18.4% and +1.4%, respectively.
In 2020, the International Value Equity composite produced a gross return of +6.3% (+5.5% net). Comparatively, the MSCI EAFE and MSCI EAFE Value produced total returns of +7.8% and -2.6%, respectively.
The pandemic tested our mettle, but our strategy and the companies in our portfolio navigated well through the volatile environment. We seek to own attractive businesses at attractive valuations, and this discipline helped us manage through a challenging time with confidence.
In 2019, the U.S. Value Equity-EQ and U.S. Value Equity-CS composites produced gross returns of +26.5% (+25.6% net) and +24.3% (+22.8% net), respectively. Comparatively, the S&P 500 and Russell 1000 Value produced total returns of +31.5% and +26.5%, respectively.
In 2018, the U.S. Value Equity-EQ and U.S. Value Equity-CS composites produced gross returns of -21.0% (-21.6% net) and -17.9% (-18.9% net), respectively. Comparatively, the S&P 500 and Russell 1000 Value produced total returns of -4.4 % and -8.3%, respectively.
In 2017, the U.S. Value Equity-EQ and U.S. Value Equity-CS composites produced gross returns of +19.0% (+18.1% net) and +22.7% (+21.3% net), respectively. Comparatively, the S&P 500 and Russell 1000 Value produced total returns of +21.8% and +13.7%, respectively.
In 2016, the U.S. Value Equity-EQ and U.S. Value Equity-CS composites produced gross returns of +16.0% (+15.1% net) and +16.3% (+14.9% net), respectively. Comparatively, the S&P 500 and Russell 1000 Value produced total returns of +12.0% and +17.3%, respectively.
In 2015, the U.S. Value Equity-EQ and U.S. Value Equity-CS composites produced gross returns of -5.0% (-5.7% net) and -5.1% (-6.3% net), respectively. Comparatively, the S&P 500 and Russell 1000 Value produced total returns of +1.4% and -3.8%, respectively.
In 2014, our U.S. Value Equity-EQ and U.S. Value Equity-CS composites returned +13.4% and +14.1%, respectively, compared to +13.7% for the S&P 500 Index and +13.5% for the Russell 1000 Value.
*Please note that we have included historical investment letters and news items in their original form. We have included additional and updated important notes and disclaimers at the Notes & Disclaimers section of this website. The information in this section is not complete without, and must be read in conjunction with, such notes and disclaimers.
