FFF Asset Management Ltd

Signet Global Leaders Fund gained +3.43% for the month of November

Portfolio comments for November 2022
The equity markets continued recovery in November 2022 on the back of the first lower-than-expected inflation print that further solidified expectations of interest rate hiking cycle slowdown in 2023. The Fund increased overall exposure level as we are becoming more constructive on macroeconomic situation and trading levels of our positions remain attractive. The largest contributors to the Fund’s performance were Meta Platforms, Microsoft, and NVIDIA. On the negative side, Amazon and Xero unmeaningfully detracted from the performance. Meta Platforms recovered post awful October share price performance as the investors recalibrated their models and realised that the company offers a substantial upside to its current market price. Amazon started to trade at valuation equal to its cloud business value (only a part of the business) not taking into considerations its e-commerce platform. We tend to believe that this market anomaly will be adjusted in 2023 as the company demonstrates margin expansion due to partially announced cost savings initiatives and continues its growth in cloud and e-commerce