Hi Hotcopper.
I've noticed there isn't much discussion on the high conviction fund.
I'm personally a big fan of Hamish and Chris's insight into innovation and growth opportunities.
What's everyone's thoughts on the five biggest holdings? (attached below).
Some interesting moves include the removal of Facebook and Tencent (approx August last year), and the introduction of Starbucks and Netflix.
Obviously we only have visibility to the top 5 positions, so the mentioned positions may have been trimmed or increased over time.
I'm very happy with Ali-Baba/Google/Microsoft as they are outside the anti-trust spotlight somewhat, Facebook obviously has some downside risk from the Whats App/Instagram/Facebook monopoly.
The returns this year have been far below my expectations, but I suspect that is from the PMs holding cash for downside protection. It also seems they've been chopping/changing their strategy far too much. Given the recent volatility related to Jack Ma/ANT and subsequent Ali Baba SP drop, I only hope they didn't lock in loses but added to the position - growth in China is inevitable and I hope the Magellan guys adequately capture that growth opportunity.
