Our global fund hammered its benchmark in January due to our holdings in technology.



Year to Date

Since Inception Annualized

(Inception Date: 6/16/2009)

Motley Fool Global Opportunities Fund (FOOLX)




FTSE Global All Cap Index




For a standardized list of performance for the Global Opportunities Fund, please click here. For fund holdings, please click here.

Wow. January was a white-hot month for global equities and a whiter-hot month for your funds. The Global Opportunities Fund trounced its benchmark in January. I could speculate on why global stocks were bid up so aggressively in January, but I wouldn’t have confidence in those explanations. I can say that being overweight in technology and healthcare, along with the performance of the companies we own in those sectors, drove our outperformance. For the year and since inception, the Global Opportunities Fund has outpaced its benchmark.

The best performing holding was South Korean technology company DuzonBizon (+45%). Duzon makes and sells critical software to large organizations, increasingly through cloud deployment, and has a fast-growing data-center business. Recently released results show business performance has been extraordinary. But we think there’s more to the story here. Duzon is making the transition from relatively unknown in the investment community to more widely known. A handful of sell-side analysts have begun to cover the company, and their outlooks have been positive. With a brighter light being shined on this longtime holding, the shares are being bid up.

The worst performing holding was System1 Group (-12%), which lowered its profit expectations in early January. We’ve written before how the company’s industry is changing, and System1 is retooling its product lineup to deal with the new reality. This process is taking longer than expected, and the update is clearly disappointing. Thankfully, this is a small position in the fund.

We did a bit of portfolio pruning during the month. We trimmed Chinese internet giant Tencent and reallocated the funds to Ctrip.com, keeping our exposure to the Chinese consumer but taking advantage of the weakness in Ctrip shares. We also added to global medical technology giant Medtronic, as the company’s new product release schedule continues to show strength.

We initiated a position in LCI Industries. LCI is a company that our team has followed for at least a decade and is among the largest positions in our Small-Mid Cap Growth fund. LCI makes and sells components that go into recreational vehicles, manufactured houses, and increasingly boats. It isn’t a sexy business, but the company has a proven track record of disciplined capital allocation and steady growth through making bolt-on acquisitions and increasing the dollar value of content it supplies to each RV produced. Of course, RV sales are cyclical and have historically moved in tandem with the strength of the U.S. consumer and in the opposite direction of gas prices and interest rates. However, we believe those dynamics are weakening. Even though RV sales are at historically high levels, we think this is being driven by new sources of demand – namely, millennial consumers looking for a vehicle that lets them live the “experience lifestyle.” It’s easy to take a cursory glance at the industry and think we’re at peak levels, but that conclusion overlooks the fact that the type of vehicle being sold has changed dramatically from previous cycles: Smaller, cheaper, millennial-friendly units are all the rage. This, with increasing demand from the wave of retiring baby boomers, who tend to purchase more traditional fifth wheel and RVs and are flush with cash after this long stock market advance, give us confidence that the RV market is still healthy and has room to run.

Breathtaking advances like what we experienced in January won’t last forever. So for now, let’s just enjoy it and remember that markets can, and will, decline. That the Global Opportunities fund consists of high-quality, forward-thinking businesses should serve us well over the long term.

The Global Opportunities Fund changed its name from The Independence Fund on December 31, 2017.

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