The Gnostic Capital Large Cap Global Portfolio Ended the first quarter of 2019 (03/31/2019) with a portfolio valued at $263.78 USD. This compares to the year end valuation of $215.28 and represents a return of 22.5% for the quarter.
In the quarter ended 03/31/19, the DJIA returned 11.2%, the S&P 500 increased by 13% and the NASDAQ composite index increased by 16.5%. The portfolio performance was very strong in relation to other actively managed funds in the Morningstar universe. Artisan Developing World fund, a small cap #1 international equity fund covered by Morningstar returned 20.4% in USD and was the top international performer in the Morningstar Universe. Four US domestic funds also bested the portfolio for performance in Q1 according to Morningstar; all were classified with smaller cap weights as compared to the Gnostic large cap portfolio
The Gnostic portfolio return was largely driven by sizable increases in Fintech space (Visa, Mastercard, Adyen, Paypal) valuations.
A number of Fintech ETF product were created early in 2019; capital inflows in the sector and increased investor interest in the core holdings of the portfolio were the likely reasons for outsized gains in those equities; whether these returns can be maintained in subsequent quarters is tricky to divine. On a more fundamental basis, Visa and Mastercard announced a series of modest, but sweeping, pricing increases on their processing offerings. In a business where the economies of scale provide for any pricing increase to fall, almost immediately, to the bottom line; such an announcement is perceived to be good news by investors.