February saw unprecedented geopolitical developments colliding with stock specific news-flow, leading to elevated volatility and in many cases, a sharp sell-off.

We entered February with expectations of a challenging results season as companies reported on the difficulties encountered due to supply chain, COVID-19 disruptions and rising costs in the backdrop of sharply higher inflation and rising interest rate expectations. However, these challenges would ultimately pale in comparison to the uncertainty and risk-aversion created by Russia’s invasion of Ukraine, which has become the dominant short – and potentially medium-term – consideration of financial markets.  

In these two videos, Portfolio Manager Joseph Kim gives investors a deep insight into the volatility we are seeing across the market and how The Montgomery Fund is adapting to this changing environment. Joseph covers portfolio companies showing resilience to the impacts of inflation and shares his view on the spike in commodities prices.

We remain positive on the portfolio of companies that we are invested in given their business quality relative to their share price and valuation, especially as the focus inevitably shifts from war disruptions to more sustainable earnings over the medium term. Our positioning remains broadly defensive as we assess the implications of rising escalations on our investment companies.  

Please download the monthly investment report: 
February 2022 Investment Report