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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Coho Relative Value Equity 2024 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Coho Relative Value Equity)

Primary Source Intelligence • Q1 2024 Letter Analysis

Coho Relative Value Equity Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Coho Relative Value Equity. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Digest Analysis

Quick Take

"Coho Partners' value-oriented strategy underperformed in Q1 as growth and high-beta stocks continued outperforming. The concentrated portfolio of 25-30 quality companies emphasizes downside protection over short-term performance."

Executive Summary

Coho Partners delivered a 6.0% return in Q1 2024, trailing the S&P 500's 10.6% gain as market conditions continued to favor growth over value and high beta over low beta. The firm maintains a concentrated portfolio of 25-30 high quality companies, emphasizing downside protection and lower volatility. Key holdings include Nike, where management is executing a $2 billion cost savings program and $18 billion buyback plan, and UnitedHealth Group, which faced multiple headwinds but remains a top managed care operator. The team eliminated Perrigo after it failed to meet expectations for infant formula remediation. Historical case studies of Disney, Dollar General, Cencora, and Grainger demonstrate the value of patient capital and conviction-based investing through temporary underperformance. While acknowledging current market headwinds, management believes their disciplined approach will generate superior risk-adjusted returns as market factors normalize over time. The strategy has delivered lower volatility than benchmarks over 95% of rolling five-year periods since inception.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

78%

CautiousHigh

High Conviction (78%)

High conviction is demonstrated through a concentrated 25-30 position portfolio with detailed case studies of specific holdings. The manager provides explicit position sizing information, discusses adding to positions during weakness, and shows willingness to hold through volatility. Named positions with clear thesis explanations and historical performance data support this high conviction score.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager acknowledges strong market performance in Q1 but expresses concern about record-high cyclical exposure in indices. They view current market conditions as challenging for their value approach but believe normalization will occur over time.

Risk Appetite

50%

DefensiveAggressive

Balanced (50%)

The portfolio remains fully invested with a concentrated approach of 25-30 positions. The manager added to several positions during weakness, demonstrating selective risk appetite while maintaining their defensive value orientation.

Capital Deployment

20%

De-riskingDeploying

De-risking (20%)

The manager added to several existing positions including Nike, UnitedHealth, Disney, and Dollar General during periods of weakness. However, they also eliminated Perrigo and trimmed Grainger, suggesting selective rotation rather than net deployment. No cash level changes are mentioned.

Forward Guidance

25%

CautiousExpansionary

Cautious (25%)

The manager plans to maintain their disciplined approach and is willing to endure short-term underperformance. They express patience rather than urgency in deployment, waiting for market factors to normalize.

Language Signal

0%

BearishBullish

Bearish (0%)

Language is balanced between acknowledging current headwinds and expressing confidence in long-term approach. Risk language around market factors is offset by opportunity language around individual holdings and historical success.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

The manager identifies specific market structure risks including record-high cyclical exposure and unfavorable factor performance for their strategy. However, these are presented as cyclical headwinds rather than systemic threats, with confidence they will normalize over time.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

The manager sees selective opportunities in individual names within their focused universe of 25-30 companies. They added to multiple positions during weakness, suggesting adequate opportunity within their quality-focused approach despite challenging market conditions.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The strategy explicitly emphasizes long-term orientation with case studies spanning 8+ years. The manager discusses willingness to endure short-term underperformance for long-term value realization and references their 24-year track record. Multi-year holding periods and patience through cycles are central to their approach.