"We Have Decided to Be Contrarian and Wrong"
Dear Limited Partners,
The best investors are contrarians. They see what the crowd cannot and are proven right. This year, we became contrarians. We were proven wrong. We have decided these are the same thing, separated only by time and outcome.
When the market loved a sector, we shorted our enthusiasm and avoided it. That sector returned 300%. When the market fled a sector, we charged in boldly. That sector is now a documentary. Our timing was, in a word, perfect — perfectly inverted.
Some funds are right for the right reasons. Some are wrong for the wrong reasons. We have achieved a rarer thing: we are wrong for reasons we were very proud of at the time. There is a purity to it.
We will continue to zig where others zag, and we will continue to find that the money was in zagging.
Boldly mistaken,
Chadwick "Chad" Burnsworth III
Managing Partner