1st Quarter 2018 Full year 2017 Full year 2016 CAGR 2007-2015
AB Invest Capital     8.77%   39.68%  24.60% 17.61%
S&P 500    -0.76%   21.93%  11.96%   8.93%
B/(W)   +9.53%                 +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 on 1st Quarter 2018:

We covered our short positions in S&P500 in the quarter and continued to deliver better return in our Private Equity investments than in Public Securities. We currently 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 value in turbulent times. If interested, please read my latest article on my LinkedIn page. From time to time we will author articles to educate the reader in our philosophy and investment ideas. 

People often ask us why we don't invest in high growth tech, distressed assets, junk bonds, non-prime, or the like. To answer this, I would like to use a quote from an intelligent investor I admire. I think this answers the question: " I get in trouble for doing things I know... Why would I spend my time on things I don't know". 


We are pleased to report to our shareholders that in the 1st quarter of 2018 we beat our benchmark index S&P 500 by +9.53%, much related to gains in our operating companies. Although slightly short of our goal to beat S&P 500 by at least 10%-points, we believe we can deliver above this threshold in the long run.


Anders J. Berggren

Chairman, AB Invest Capital


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