Is Temple Bar a reason to like Mundy?


#1

Temple Bar is a large investment trust dating back to the early inter-war period, and managed today by the charismatic Alistair Mundy. I had the oppor
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#2

“Where should you put your money now if stocks are too deer?”

Er, look for road-kill stocks…? :wink:

+++

Always worth a read are the monthly factsheets for TMPL, also available from the web-site: http://www.templebarinvestments.co.uk/fact-sheets They make a refreshing change from the usual “We’ve bought stuff, we’ve sold stuff. we’re fund managers. Yeah!”

The most disappointing thing to discover about Mr Mundy is that he is a West Ham supporter. But on second thoughts, this does make sense: being prepared to stick with unloved stocks does have similarities with sticking with unloved football managers, I suppose! Subject matter for a future factsheet, perhaps…? (tongue, very firmly, in cheek!)

P.S. TMPL is my longest-held, and my largest holding.


#3

His bearishness is amplified by his investment style I think. i.e. he needs to find cheap shares.

Must say, I thoroughly enjoyed reading this. He sounds quite a character, and though I don’t agree that the world is going stop soon I think having a bit of a holding in Temple Bar might be a little bit of, if not an insurance policy, then a nicer place to park some of your cash.


#4
asset management business is a marketing business as well as managing money.

What a fantastically honest chap. I have had a holding in this for a few years now and it has been a terrific investment.

I agree with your sentiment about his investment style perhaps informing his view of the markets @citygirl.


#5

I like the following quote from the factsheet @Arkwelder linked to…

Spurious correlations - The website Spurious Correlations, is undoubtedly worth a few moments of everyone’s time. It does for example, show the very high correlation between per capita consumption of cheese in the US with the number of people who died by becoming tangled in their bedsheets. This is a classic example of how correlation does not mean causation, but in the example on the website it would be fairly unlikely that many people would have read too much into these relationships.

I don’t own any of this trust, I wasn’t that familiar with it until I read this article. It sounds great but I do wonder if there might be a chance to buy it on a wider discount further down the road.


#6

I’m a bit of a fan of Mundy too though i hadn’t really looked at his factsheets before. It makes for an entertaining read, disjointed too but entertaining none the less @arkwelder.

Spurious correlations is a great reminder that correlation isn’t the same as causation - to be honest, I’d be lying if I didn’t admit that this was something I was beginning to forget.


#7

He’s way too bearish for me. I don’t think we’re going to see another crash, where else could people put their money except for the stock market. They’ll get nothing from a bank account, and look at how little you get for holding a Gilt fund.

He is certainly entertaining and I enjoyed reading this article and looking at @arkwelder’s link, and I think he’s a great fund manager worth investing in but I’m not going to take my money out of other areas of the market because I just don’t share his worries.


#8

It’s often suggested that small mid-career investors looking for long-term growth should nonetheless hold, say, 10% of their portfolio in bonds and another 10% in income-generating non-equity assets like commercial property. Arguably all this does is drag down your fully-invested performance in the good times, and doesn’t protect you much in a downturn. Even if the bonds do fall less, an active investor should be repositioning the rest of his or her portfolio to a defensive posture during a downturn, and that ability and willingness to respond to events will do far more to protect you on the downside than simply passively holding bonds on a long term basis just “because one should”.

So, how defensive do you need to be in a gently- or sideways-moving market like the one we’ve been seeing in 2014? Arguably cautiously-positioned investment trusts like Temple Bar or City of London, or internationally, RIT Capital Partners, are well worth having in a portfolio, to balance your more risky investments or those that try and ride a rising index (and then come crashing back down while the Temple Bar value investors keep plodding upwards).

Another way of looking at this is: how well has Mundy performed over 5 or 10 years compared to other investments in his market area, and are his returns acceptable to you given his lower risk profile? Despite poor returns over the last year, I’ve said yes, and hold about 5% of my portfolio in Temple Bar.