In last month's update, I noted that March 2016 will go into the investment books as one of the best-performing months in history. The rising tide helped our portfolio outperform the market. Fast-forward to today and, although April was rather even-keeled for the stock markets, our undervalued securities continued to advance toward their intrinsic values.
Compared to a six-percentage-point advance in the S&P 500 in March, April's one percentage point was uneventful for Mr. Market. For our value portfolio, it was a different story. As of April 28, our portfolio was up 15.6% for the year compared with a gain 2% for the S&P 500. Our aim is to best the market indices by more than 3% per annum. While we are achieving that metric today, our portfolio still remains quite undervalued.
The severe downturn in the energy markets at the beginning of the year turned into a rally with the same extremity on the upside as evidenced by the 100%-plus advance in Sanchez Energy (SN) this year. From its low of the years, Sanchez is up over 300%.
While the apparent renewed commitment to low interest rates has cooled the appetite for banks, Towne Bank (TOWN) remains on of most impressive regional banks we have come across and expect that holding to do very well over a long period of time.
We have stubbornly remained committed to General Motors (GM) although ownership has been disappointing for the past several years. But we remember Keynes' observation that the market can stay irrational longer than one can stay solvent. We have no issues with solvency; rather it's the ultimate game of patience between GM investors and Mr. Market. Patience doesn't disappoint when you own a quality company that continues to generate growing levels of cash flow.
Kindred Biosciences (KIN) remains a very intriguing optionality on any future drug marketability and the shares continue to trade below net cash. With over a dozen animal drugs in the pipeline, Kindred is also worthy of investor patience.
Patience has shown it pays off exceedingly well and should continue to do so in our value holdings.