Results

Performance Comparison

 

Our disciplined and patient approach to long term investing has produced results for our clients in both up and down markets.  In fact, since inception we have outperformed the S&P 500’s Total Return Index (includes dividends) by a compounded annual average of 2.8% per year:

  • From April 1998 through December 31, 2023, PCI has compiled an annualized time weighted return of +10.6% compared to the 7.8% annualized performance of the S&P 500’s Total Return Index.
2023 Perf

PCI’s Results and Performance Record

PCI has outperformed the market and has provided significant gains to its longest-term clients.  More significantly, PCI accounts have not suffered nearly as much in the years when the stock market suffered its greatest losses.  The above are PCI’s Performance Results from inception (1998) through 2023; they are compared to those of the S&P 500 Total Return Index.  PCI accounts, in aggregate, vastly outperformed the overall market over the long-term because our declines were much less during periods of market weakness and our gains were strong during periods of market strength. This trend continued during 2022/2023, when Pacifica once again greatly outperformed the market during a period of market weakness (2022) and had results in line with the market strength of 2023. We continue to believe our caution will be well rewarded with strong, long-term results.  

*PCI performance for each year is unaudited and is a Time Weighted Rate of Return for that year, except for 1998-2004, which is an Internal Rate of Return for those years. IRR is a dollar-weighted return that accounts for contributions and withdrawals during the period. TWR is a time-weighted return that effectively eliminates the effects of contributions and withdrawals and their timing. 1998 is a partial year. The S&P 500 Total Return measures the change from the start of the period to the end of the period, assuming no contributions and/or withdrawals and includes dividends. The “Total” is for the entire period, compounded annually. PCI results are shown net of all fees, including management fees, brokerage fees and custodial expenses, and reflect the reinvestment of all dividends and earnings. Performance results provided herein are the aggregate of all fully discretionary accounts managed by PCI, including those accounts no longer with PCI, and include the performance of the accounts of PCI’s principals (which do not incur management fees) and certain other accounts that have reduced management fees. Minimal leverage and short selling has been used since inception for the PCI managed accounts; the effects of such leverage and short selling on PCI’s performance figures have been nominal. Results for individual accounts are varied and will vary in the future. In addition, it is not likely that the relative performance of PCI’s managed accounts will exceed the performance of the broader stock market (as measured by the S&P 500 Total Return or other broad market indexes) by as large a margin as has occurred to date. The stock market faced an unprecedented decline in the year 2008, which strongly impacted the performance of the S&P 500 Total Return Index during the time period shown. In addition, PCI’s performance during the year 2000 was significantly enhanced by the strong performance of one large position in its accounts under management. The 12/31/23 total ending balance for all accounts was approximately $482 million and approximately $144 million was in accounts of PCI principals (Leonard, Lambert, and Bodek family accounts). Total number of individual accounts was 261 as of 12/31/23.

Past performance is not a guarantee or indicator of future results, and investors should not assume that investments made on their behalf by PCI will be profitable, and may, in fact, result in a loss. Investors also should not assume that PCI’s results will outperform the S&P 500 Total Return Index or other broad market indexes in the future. The investment objective of PCI’s managed accounts is capital appreciation. PCI’s strategy is to concentrate its investments in a limited number of positions with certain positions representing an intentionally large size in the accounts. This concentration is likely to result in greater volatility than the overall market as measured by the S&P 500 Total Return Index, which is made up of 500 large companies. The S&P 500 Total Return Index reflects both changes in the prices of stocks in the S&P 500 Index as well as the reinvestment of the dividend income from its underlying shares. The Index does not bear fees and expenses, and investors cannot invest directly in the Index. In addition, PCI’s strategy is to “hold for the long-term” which reduces trading costs.

 

 

Past performance is not a guarantee or indicator of future results, and investors should not assume that investments made on their behalf by PCI will be profitable, and may, in fact, result in a loss. Investors also should not assume that PCI’s results will outperform the S&P 500 Total Return Index or other broad market indexes in the future. The investment objective of PCI’s managed accounts is capital appreciation. PCI’s strategy is to concentrate its investments in a limited number of positions with certain positions representing an intentionally large size in the accounts. This concentration is likely to result in greater volatility than the overall market as measured by the S&P 500 Total Return Index, which is made up of 500 large companies. The S&P 500 Total Return Index reflects both changes in the prices of stocks in the S&P 500 Index as well as the reinvestment of the dividend income from its underlying shares. The Index does not bear fees and expenses, and investors cannot invest directly in the Index. In addition, PCI’s strategy is to “hold for the long-term” which reduces trading costs.