After outperforming for two straight quarters, the fund underperformed in Q4. To outperform 50% of the time in the late cycle of a momentum rally is as admirable as scoring against the run of play. Yet, make no mistake. Quality should not outperform in the latter part of the cycle. Momentum is too strong to valuations, regardless of Quality, to overcome. Investors are extrapolating earnings growth of cyclical companies based on continued virulence in both easy monetary policy and fiscal stimulation in the US and China (the other side of this coin is the macroeconomic malaise investors are extrapolating into share prices of domestic stocks). The biggest beneficiaries of the status quo are mining companies which we do not own and have not owned for four years. Our underperformance in Q4 is purely down to not holding mining stocks. Outside of mining, we have done a spectacular job of stock picking in FINDI. Despite Q4’s outcomes, 2019 was a year in which capital returns in Quality rebounded strongly from their 2018 bottom. In contrast, dividends contributed significantly to returns of mining stocks. Mining companies have so far chosen to return cashflows, thanks to a rebound in commodity prices since 2016, to shareholders rather than reinvest them for growth (decade lows in capex). Investors are betting that dividend yields of mining shares will come to pass. In other words, they are betting that nothing will upset the apple cart of commodity prices. We are betting that something will. And when it does, Quality companies will outperform based on their consistent dividend profile. Unlike mining companies, Quality companies do not stop generating cashflows and distributing them in dividends and share buy backs when they are out of cycle. In the event of a market crash, capital returns of cyclical companies will underperform income generating properties of Quality companies.