Investment Update (March 2020)

As patient, long-term investors, we aim for balance, diversification and a strategy built to thrive across good days and bad.

by A.F. Drew Alden, Senior Vice President for Investments and CFO

(Top) iStock/Getty Images; (Below) A.F. Drew Alden Photo Credit: Judy Sirota Rosenthal


It’s no secret that the markets have been experiencing sharp and volatile trading patterns these past few weeks. Most recently, it has been fueled in large part by global concern over the coronavirus (Covid-19) and its long-term implications for the worlds' economies. Simply put, what’s bad for business is bad for returns.

Our commitment and priority is the relentless pursuit of investments offering a high probability of growth with prudently applied risks.

Our early estimate shows about 3.5% loss for the month of February, and a 4% loss thus far in 2020. Combining calendar 2019 and the start of 2020, the portfolio was up just over 12.0%.

As patient, long-term investors, we aim for balance, diversification and a strategy built to thrive across good days and bad. While there currently is no clarity into the length or severity of Covid-19, the importance of balance and patience with owning investments at perhaps less than their intrinsic value will prove more important each day.

The truth is that The Community Foundation’s portfolio, like others’, is not immune from market declines during periods of panic. Similar to past circumstances, historic levels of market distortion provided unusually compelling opportunities.

The Foundation’s oversight process and portfolio construction are well positioned for more difficult conditions, and to function as intended once the current threat has passed. Our hope is that this will not take too long as reducing the impact of the coronavirus on human lives is paramount for all.