YTD 3Q 2018 Full year 2017 Full year 2016 CAGR 2007-2015
AB Invest Capital     18.18%   39.68%  24.60% 17.61%
S&P 500     10.56%   21.93%  11.96%   8.93%
B/(W)     +7.90%                 +17.75% +12.64% +8.67% 

Note: All performance calculations are based on AB Invest Capital per share book value and include dividends. Numbers are updated quarterly.


Comments 3rd Quarter of 2018:

Entering the 4th quarter we started to pull back on our Public Securities positions due to global tensions, trade tariffs and tighter monetary policy movements with a increased trend of higher interest rates. As Dorothy said in the Wizard of OZ: "Toto, I have e feeling we are not in Kansas anymore". 

We remained patience and focused in the quarter and reducing our Public Security positions in the US while holding on to our core Private Equity investments. We can report similar trends to previous quarters were we continue to deliver better return in our Private Equity investments than in Public Securities. Net-net we improved our performance in the quarter from about 14% in the second quarter to just over 18%, beating S&P 500 by about 8%-points, now below our benchmark of beating S&P 500 by at least 10%-points. We continue to hold an unusual large amount of cash ready to invest as opportunities arise. 

We believe that investing in operating companies will continue to have better return than dividend paying stocks at this time. By paying attention to our operating companies we enjoy their ability to generate cash that we are able to reinvest. Our float of cash pile recorded all time high by the end of the quarter. 


We are pleased to report to our shareholders that in the 3rd quarter of 2018 we beat our benchmark index S&P 500 by +7.90%, much related to gains in our operating companies and a rebound in public securities. Unfortunately, we missed our goal to beat S&P 500 by at least 10%-points, however, we feel confident we can beat this benachmark by year-end, and in the long run.


Anders J. Berggren

Chairman, AB Invest Capital


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