Mapfre US Forgotten Value Fund commentary for the month ended May 31, 2024.
The Mapfre US Forgotten Value Fund rose 2.86% in May versus a 4.96% rise for the S&P 500 and a 3.12% rise for the S&P 1500 security. Through May 31, the Mapfre US Forgotten Value Fund advanced 4.49% versus a gain of 11.30% for the S&P 500 and 6.00% for the S&P 1500 security. The Energy sector was the only sector to post a negative return in May (less than 1%). Other laggards were Consumer Discretionary (+0.18%), Industrials (+1.44%), and Health Care (+2.26%), while the big gainers were Technology (+9.95%), Utilities (+8.46%), and Communication Services (+6.56%).
After decreasing in April by -4.47% (Class I) and -4.52% (Class R) versus -3.50% for the S&P 1500 value index and a decline of 3.39% for the S&P 500), in May the MAPFRE Asset Management US Forgotten Value Fund increasing 1.30% (Class I) and 1.26% (Class R) versus 1.56%.
The three stocks that contributed the most to the portfolio’s performance in April were Alphabet (advancing 7.85% and contributing 0.22% in performance), Carrier Global (advancing 5.78% and contributing 0.13% in performance) & Levi Strauss (advancing 6.15% and contributing 0.10% in performance). The three investments that detracted the most from the portfolio were Uber (declining 13.92% and detracting 0.83% from performance), Sphere Entertainment (declining 20.82% and detracting 0.45% from performance) and IAC (declining 10.84% and detracting 0.36 % from performance).
Investment Objective
North American Equity Fund focused on investing in companies undervalued by the market. The objective of the fund is to obtain a return superior to the market over the long term. To achieve this objective, we carry out an in depth analysis, with a special focus on securities that may be outside the focus of the investment community. For example, companies having a complex capital structure or enterprises being in a momentarily out of favor sectors could be categorized as “Forgotten Stocks”. Another example, are companies with lower capitalization, being followed by fewer analysts.
The fund will invest at all times, directly or through derivatives, at least 75% of its net assets in shares listed in the United States. The rest of the total exposure will be invested in public and private fixed income issued and negotiated in the OECD.