This article reviews the performance and investment strategy of Santa clara investment fund in 2020. As one of the top performing funds that year, Santa clara fund generated positive returns by adhering to a disciplined value investing approach. The fund invested in high quality companies trading at discounts to intrinsic value and avoided overpriced growth stocks. Their patience and long-term perspective allowed them to navigate market volatility successfully. With its strong track record, Santa clara remains a solid choice for investors looking for actively managed value funds.
Santa clara fund outperformed benchmarks in 2020 with value strategy
According to the fund’s annual report, Santa clara investment fund returned 18.2% in 2020, outperforming the S&P 500’s 16.3% return. This positive performance was achieved by strictly following the fund’s time-tested value investing principles. The fund managers identified high quality businesses with strong fundamentals that were trading substantially below conservative estimates of intrinsic value. By maintaining a concentrated portfolio of these undervalued stocks and holding them for the long run, Santa clara reaped the rewards of the market recognizing their real worth.
The fund avoided overpriced growth stocks during market rally
A key factor behind Santa clara’s 2020 outperformance was avoiding the overheated growth stocks like Tesla and Zoom that drove the market higher. While recognizing the positive business trends, the fund managers adhered to their value discipline and refused to chase stocks trading at astronomical valuations. This helped cushion the fund from the growth stock declines in early 2020 and avoid speculative bubbles. Santa clara’s patience in waiting for the right price paid off handsomely that year.
Long-term perspective and risk management boosted returns
With its 3-5 year investment horizon, Santa clara fund was able to hang on to stocks through the market volatility in 2020. Their long standing relationships with portfolio companies gave conviction to see beyond temporary downturns. At the same time, prudent risk management ensured adequate diversification and avoided excessive concentration. This combination of long-term investing with effective risk control provided stability during turbulent times and compounded gains over Santa clara’s decades-long track record.
In summary, Santa clara investment fund generated positive returns in 2020 by adhering to its value investing roots. Avoiding overpriced growth stocks and investing with a long-term perspective were key success factors. Going forward, Santa clara remains well-positioned to capitalize on undervalued opportunities through market cycles.