As investors in London, New York and beyond prepare for the short Festive break, one character is conspicuous by his absence – Santa Claus and his feted end of year market rally. While there is still time for bruised investors to hope for some end of year relief, the numbers suggest that hope – and belief in the existence Santa Claus (and his rally) is not a strategy that Mayar can recommend.

Bah Humbug as Ebenezer Scrooge might say. However, we think that the fundamentals of the market and select businesses do give reason for optimism over the medium-term. As we identify great businesses and great companies we are also prepared for the opportunity to buy at points which offer great value. The market seems set to provide such an opportunity.

Different geographies have fared differently and so have different industries and stocks. This is why the Mayar Global Equity Strategy has been able to generate positive returns in 2018 in a down market. Furthermore, we have found many more attractive opportunities over the past 6-8 weeks than we have over the past two years. We expect these to perform strongly over the next 3-5 years, even if markets are volatile.

In our own valuation framework, we always think about the next 5 years starting from today. In a sense, we think like a private equity investor making a purchase today and trying to estimate an exit value in 5 years’ time to calculate an expected IRR. We perform this exercise on a real-time basis and it helps us determine when and what to purchase. Looking at our portfolio today, we estimate that it is trading at a 23% discount to our conservatively-estimated intrinsic value. This would translate into an expected IRR of 10-12% over the next 5 years.

Disclaimer
This document is prepared by Mayar Capital Advisors Limited (“MCA”), an Appointed Representative of Privium Fund Management (UK) Limited (“Privium”) which is authorised and regulated by the Financial Conduct Authority ("FCA") in the United Kingdom. It is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Within the EEA Mayar Fund (“the Fund”) is only available to Professional Investors as defined by local Member State law and regulation. Outside the EEA, the Fund is only available to Professional Clients or Eligible Counterparties as defined by the FCA, and in compliance with local law. This document is not intended for distribution in the United States (“US”) or for the account of US persons, as defined in the Securities Act of 1933, as amended, except to persons who are "Accredited Investors", as defined in that Act and "Qualified Purchasers" as defined in the Investment Company Act of 1940, as amended. It is not intended for distribution to retail clients. This document is qualified in its entirety by reference to the Private Placement Memorandum (together with any supplements thereto, “the PPM”) of Mayar Fund. Please see the section of the PPM on information required by Securities Laws of certain jurisdictions. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the PPM.

This document is provided for information purposes only and should not be regarded as an offer to buy or a solicitation of an offer to buy shares in the fund.  The prospectus and supplement of the fund are the only authorised documents for offering of shares of the fund and may only be distributed in accordance with the laws and regulations of each appropriate jurisdiction in which any potential investor resides. Investment in the fund managed by Privium carries significant risk of loss of capital and investors should carefully review the terms of the fund’s offering documents for details of these risks. Mayar Fund follows a long-term investment strategy. Short-term returns will vary considerably and will not be indicative of the strategy’s merits. This document does not consider the specific investment objectives, financial situation or particular needs of any investor and an investment in the fund is not suitable for all investors. Investors are reminded that past performance should not be seen as an indication of future performance and that they might not get back the amount that they originally invested.

This document is confidential and solely for the use of MCA and the existing and potential clients of MCA to whom it has been delivered, where permitted. By accepting delivery of this presentation, each recipient undertakes not to reproduce or distribute this presentation in whole or in part, nor to disclose any of its contents (except to its professional advisors), without the prior written consent of MCA.

Comparison to the index where shown is for information only and should not be interpreted to mean that there is a correlation between the portfolio and the index. The views expressed in this document are the views of MCA and Privium at time of publication and may change over time. Where information provided in this document contains “forward-looking” information including estimates, projections and subjective judgment and analysis, no representation is made as to the accuracy of such estimates or projections or that such projections will be realised. Nothing in this document constitutes investment, legal tax or other advice nor is it to be relied upon in making an investment decision. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements and any applicable taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments. Each prospective investor is urged to discuss any prospective investment in the Fund with its legal, tax and regulatory advisors in order to make an independent determination of the suitability and consequences of such an investment.

No recommendation is made positive or otherwise regarding individual securities mentioned herein. No guarantee is made as to the accuracy of the information provided which has been obtained from sources believed to be reliable. The information contained in this document is strictly confidential and is Intended only for use of the person to whom MCA or Privium has provided the material. No part of this document may be divulged to any other person, distributed, and/or reproduced without the prior written permission of MCA.

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The investment services of Mayar are only available to professional clients and eligible counterparties for the purposes of the FCA’s rules. They are not available to retail clients. Past performance is not a guide to future performance and any capital invested is at risk.