Client Letter Archive

Kopion’s semi-annual client letters are our primary means of communication with our clients. These letters touch upon recent performance, but their main purpose is to help our clients understand our thought processes as we are managing their portfolios. These letters are provided below.

  • 2020 1st Half: Value Packing
    An overview of the Covid-19 pandemic's impact on the stock market, how Kopion has responded, and expectations for the economic recovery.
  • 2020 Mid-March: PANIC-20
    A "special edition" letter to offer perspective and encouragement in the midst of the stock market panic brought on by the Coronavirus pandemic.
  • 2019 Year End: Predictions ≠ The Future
    A discussion of the ambiguity of the future and how Kopion has constructed its portfolio accordingly.
  • 2019 1st Half: Interpreting the Last 5 Years
    A reflection on common obstacles to interpreting the past correctly and a discussion of a key factor that has hurt our performance in recent years.
  • 2018 Year End: Tug of War
    A discussion of the anxiety that permeated the stock market throughout 2018 in spite of encouraging developments in the broader economy and the companies in our portfolio.
  • 2018 1st Half: Thinning the Herd
    A reflection on two trends that have unfolded over the last 15 years and increased the challenge of being a value investor.
  • 2017 Year End: About That Cycle
    A discussion of the asymmetric nature of economic and stock market cycles as well as Kopion's place within the current up-cycle.
  • 2017 1st Half: On The Road Again
    A discussion of the slow-motion nature of the economic recovery that followed the financial crisis and two related themes within our portfolio.
  • 2016 Year End: Break on Through?
    A reflection on the vagaries of the stock market and the importance of staying the course in order to eventually reach better results such as the recovery that Kopion experienced in late 2016.
  • 2016 1st Half: Status Report
    An update on the factors that have been weighing on Kopion's portfolio.
  • 2015 Year End: Endurance Riding
    A review of three factors that challenged our portfolio during 2015 and a discussion of model investors who persevered through their own difficult seasons.
  • 2015 3rd Quarter: Ride the Storm
    A "special edition" letter that discusses Kopion's recent results as well as two competing definitions of risk.
  • 2015 1st Half: The Kopion Manifesto
    A discussion of why most investment funds underperform their index, the limitations of index funds, and how Kopion has been designed to overcome these shortcomings.
  • 2014 Year End: Sowing & Reaping
    A discussion of why Kopion's portfolio underperformed during 2014 following 2013's phenomenal results.
  • 2014 1st Half: The Average Misconception
    A discussion of how the "average return" can be a misleading reference point for what stock investors will experience from year to year, but how disciplined investors can benefit from this volatility.
  • 2013 Year End: Catch a Wave
    A review of the numerous factors that led to an exceptionally strong performance during 2013.
  • 2013 1st Half: Who Let The Dogs Out?!
    A discussion of "problem stocks" and how we were eventually rewarded for persevering through two troubled investments.
  • 2012 Year End: Where Are We?
    A high level perspective on our progress through the larger economic cycle as well as the stock market’s grand cycle.
  • 2012 1st Half: Competing Realities
    A discussion of how short-term noise, especially macroeconomic worries, can distort stock prices so that they fail to reflect the value of the underlying businesses.
  • 2011 Year End: No Rain, No Rainbows
    How Kopion focuses on stocks with unique growth prospects as well as the buying opportunities created by market declines.
  • 2011 3rd Quarter: Katrina & Rita
    A “special edition” letter comparing the market’s panic during the third quarter of 2011 to the hurricane-induced panic that led to a mass exodus from Houston in 2005.
  • 2011 1st Half: Process vs. Outcome
    The importance of adhering to a sound investment process instead of focusing on individual outcomes.
  • 2010 Year End: Sideshow
    How the macro economy was a major distraction for most investors during 2010—until the fourth quarter when the market began to take notice of the progress at many of our companies.