Quarterly Client Letters

2013 Q4 Client Letter
January 6, 2014

Dear Twinleaf Account Holder:

Managed account portfolios finished a very good 2013 with some autumn underperformance that left us disappointed at year end despite solid outperformance for the year as a whole. Perhaps it’s inappropriate to dwell on the negative but like a pitcher who loses a shutout in the ninth inning, a potentially great year slipped away as two stocks contributed about 600 basis points of overall performance erosion. As detailed below, one of the culprits was a regrettable investment decision and the other remains our best investment idea that hasn’t yet performed.

Nonetheless, accounts that were with us for the entirety of 2013 returned +50.3% net of fees, considerably better than the total return of the two most relevant stock market indexes, the S&P 500 (+30.4%) and the Russell 2000 (+37.9%). In Q4, Twinleaf accounts were +3.0% net versus +9.4% for the S&P 500 and +7.0% for the Russell 2000. 



October 2, 2013

Dear Twinleaf Account Holder:

Outperformance continued in Q3 2013 with client account gains ranging from 12% to 19% in the quarter. On a blended basis, Twinleaf posted a 12.7% rise in Q3, net of management fees. Key performance drivers were some of our larger positions, including Marchex (+21%), Crown Media (+25%) and Envivio (+51%). Year to date, Twinleaf accounts are +45% with the help of two M&A take-outs, though smallish positions both.



Dear Twinleaf Account Holder:

Second quarter 2013 was an excellent one for Twinleaf-managed client accounts as the market began to recognize the value of several of our portfolio companies, most notably Marchex (MCHX), Crown Media (CRWN) and Envivio (ENVI), which rose 43%, 20% and 19% in the quarter, respectively. We even got an M&A event for one of our stock holdings, as Multiband (MBND) agreed to sell itself in May at a nice premium. 

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2013 Q1 Client Letter

April 2, 2013

Dear Twinleaf Client: 

First quarter 2013 was a good one for equity investors as a number of factors -- the continuing low-interest rate environment, solid corporate earnings and balance sheets, an incipient housing recovery and some high-profile M&A activity -- drove stock prices higher. Your Twinleaf account outperformed most stock indexes in the quarter, rising in value by 15.57% on a gross basis and 15.28% after fees. Since inception on 2/7/12, your Twinleaf account is up 16.79% on a net basis, also ahead of most relevant indexes. 


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2012 Q4 Client Letter

January 7, 2013


Dear Twinleaf Account Holder:


Managed account portfolios turned in solid performances in Q4, rising by 4.7% net and pushing returns into positive territory since our February 2012 launch.  Net of fees, Twinleaf managed accounts were up 1.3% since inception, a bit below relevant benchmark indexes but with Q4 momentum that has continued into 2013.  



2012 Q2 Client Letter
July 12, 2012

Dear Twinleaf Account Holder:

Market conditions were difficult in the second quarter of 2012 as macro events, led by the European sovereign debt crisis and a weak economic recovery in the USA, weighed on stock prices.  While the S&P 500 and the Russell 2000 were each down by more than 3% in the quarter, Twinleaf client accounts were down by a slightly better 2.4%, including fees, and our relative outperformance has accelerated in the first two weeks of July.