Make sure that the active funds are genuinely active

June 2024

We very much enjoyed Fred Hickey’s recent interview with Adam Taggard on Thoughtful Money (you can watch the interview on YouTube here). He runs through reasons that equity prices have run so far, focusing on some of the “AI companies” attracting a great deal of market attention. With mega-caps being amongst the biggest beneficiaries of that surge in equity prices, passives are also faring well for the time being. Perhaps surprisingly, we are not against passive index-tracking funds at Kennox, though you need to be a bit more wary at the end of a long bull market. Rather, we think they have a place in many investors’ portfolio alongside carefully selected active funds. You just need to make sure that the active funds are genuinely active.

In our latest quarterly report, we cover some of the stocks driving performance in the Kennox Fund and how differentiated these are to the wider market.

We are also pleased to attach the latest fund factsheet.