(Tokyo, JAPAN) Watanabe & Brothers’ Investment today issued 2023 Q1 quarterly results of Orphan Fund. Despite the challenging macroeconomic environment, our fund recorded 13% growth with respect to 2022 Q1 (JPY). As you may be aware, this was partially thanks to the stronger US dollar exchange rate. However, most of holding stocks recorded the stronger performance compared with the average stock indexes.
For example, earning yields of TSLA, MSFT, AAPL, GOOGL were over-performing that of S&P500 in 2023 Q1. In addition, earning yield of ADS.DE was over-performing DAX in the corresponding period.
Accordingly, thanks to the superior performance of these stocks, our fund’s growth rate over-performed that of S&P500 on QoQ basis.
As for the future outlook of world economy, we expect that inflationary tendency would be continued in the next several years. Thus, central banks would continue the economic tightening. Therefore, long-term interest rates are expected to go upward further.
Under such economic environment, we believe that speed of economic tightening will be very important for stock market’s overall growth rate.
We will assess the higher interest rates resistance of each equity in the coming several quarters. The purpose of these assessment is to consider our fund’s portfolio from the longer-term basis. Generally, we believe that growth rates of operating cash flow or free cash flow of each equity exceeding the long-term interest rates would be very important for our fund’s continuous growth in the coming several years.
Watanabe & Brothers’ Investment will continue to invest in US and European Equities considering the philosophy of ESG investment.