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Annual Investor Letter 2019-20

Annual Investor Letter – 2019-20

Dear Investors,

It would be an understatement to say that we live in unprecedented times. While we have seen our share of local epidemics like SARs, MERs, Swine Flu etc. a pandemic of this magnitude was last seen over a hundred years ago in 1917-18 during the Spanish Flu. So while our generation is seeing this for the first time, the world has been through this before.

Markets have been volatile to say the least. While the Spanish Flu pandemic is a precedent for what we facing as a society, an economic shock of this magnitude was perhaps seen during World War 2. We got through that too.

Our investing systems have served us well in these times. This crisis has been as good as a live stress test as could be, for our investing system and processes. We are happy to report that it has performed as per expectations.

A summary of AlphaBets performance is given below:

The silver lining in this thundercloud is that studies of crashes using data from 101 global stock markets from 1692 to 2015 show “Returns following a severe crash are on average more than 10% higher than those following a market gain.” That is if history is any guide.

While we don’t know when markets will pick up again, we are certain that at some point they will. So this is a good time as any to increase your allocation to AlphaBets.

We take this opportunity to thank doctors, nurses, healthcare workers, law enforcement agents, essential supplies providers and many others who are out there at the front lines, fighting on our behalf, so that we are safe at home.

We will follow our systems and keep focusing on our research process to make them more robust.

Here is a link to our Annual Investor Letter.

Stay safe.

Team QED Capital

Disclaimer: Nothing in this blog should be construed as investment advice. This is purely for educational purposes only.  Please consult an investment advisor before investing.