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Broyhill Asset Mgmt - BMC Fund Struggling


Broeb22

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https://www.sec.gov/Archives/edgar/data/351786/000110465919072872/tm1925242-1_ncsr.htm

 

Page 22 shows this family office's long-term results. This is also the same family office where Chris Pavese from Broyhill Asset Management works.

 

I wonder how he squares this long-term performance with his letters which paint a picture of success protecting investor capital.

 

4-5% long-term...not so hot

 

 

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Increasing cash significantly too...seems like a great recipe for continued underperformance.

 

Much like Berkshire, Baupost. I would think the dry powder is part of the convexity in an old fashion way

 

Can you explain the convexity of holding dry powder like you're talking to someone who got C's in his Econ classes?

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https://www.sec.gov/Archives/edgar/data/351786/000110465919072872/tm1925242-1_ncsr.htm

 

Page 22 shows this family office's long-term results. This is also the same family office where Chris Pavese from Broyhill Asset Management works.

 

I wonder how he squares this long-term performance with his letters which paint a picture of success protecting investor capital.

 

4-5% long-term...not so hot

 

Protecting capital and growing capital are two different things. Not sure what the performance has looked like during actual market drawdowns, but since the worst annual return was -2%, it seems reasonable to argue that the capital has been protected so far. Now, whether the growth has been sufficient for the strategy, I don't know enough about it.

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Increasing cash significantly too...seems like a great recipe for continued underperformance.

 

Much like Berkshire, Baupost. I would think the dry powder is part of the convexity in an old fashion way

 

Can you explain the convexity of holding dry powder like you're talking to someone who got C's in his Econ classes?

 

Sorry, my bad.

I meant when the market goes down, I either buy the beaten down equity or buy call options and you get convex exposure. I didn't mean convex per se, but convex relatively to a crisis event (liquidity is what is the problem, most of the time)

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https://www.sec.gov/Archives/edgar/data/351786/000110465920135621/tm2038426d1_ncsr.htm#sp1_001

 

More outstanding(?) performance from Chris Pavese and Broyhill Asset Mgmt.

 

https://www.broyhillasset.com/2020/12/10/value-returns/

 

All of his original updates here on the market.

 

Maybe I'm biased but the performance that BMC Fund is generating is very unappealing. No wonder you don't see Chris talking about his performance anywhere, because it's not very good.

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