Q1 2025 Newsletter

Q1 2025

Dear Investors,

We are only three months into 2025, yet we are already experiencing tariffs, disruptions, market uncertainty, and a fear over the future.  Over the past three months I have been repeatedly asked, “Do you think we’re going into a recession?” “Do you think the markets will keep going down?” and many similar questions.  There is clearly a lot of angst and uncertainty in the market today.  My answer is always the same: I have no idea what the market will do in the short-term or whether or not we will be headed into a recession, but what I do know is that owning quality companies at great prices will be handsomely rewarded in the long run.  I am proud to say that is exactly what has been paying off this quarter.

In our previous newsletters I have been telling you how expensive the market is on a historical basis.  It has been harder and harder to find attractive value in the markets.  This is why Warren Buffet has built a record cash position with Berkshire Hathaway sitting on $334 billion in cash, and this is also why I began to buy “insurance” on our portfolio in the form of puts.  Well, I am pleased to say that the combination of a high quality portfolio and these puts has led to our best quarter ever when compared with the market’s performance.  As of March 31, 2025, The Stewardship Fund has returned 4.36% YTD vs the S&P’s -4.81% return YTD.  Additionally, our initial investors just surpassed 50% total returns since we launched the fund!  While there are no guarantees moving forward, I am extremely pleased at how well our portfolio is holding up in the midst of this volatility.

The truth is, it would be far better for us if the market continues to fall over the next 6-12 months so that we can buy companies at discounted prices.  The plan is to continue positioning ourselves so that we can benefit in either a rising or falling market while maintaining our focus on long-term value.  It is true that the market has been falling in 2025, but there is still potential for a much greater drop in the market as we are still trading at quite lofty valuations, even after this downturn.  At The Stewardship Fund we have begun opportunistically buying several small positions after several companies have begun entering our buy price range, but we have yet to see the screaming bargains that will hopefully come later this year.  Rest assured that if these bargains present themselves, we plan on being prepared to take advantage.

On a fund specific note, I am excited to share that we have launched our website www.thestewardshipfund.net.  I welcome you to check it out as we officially begin the next phase of growing The Stewardship Fund.  I have begun the networking process, and I will be attending the Christian Institutional Investors Conference at Colorado Christian University on April 2nd-3rd.  I have already been making some wonderful contacts, and look forward to making many more.  Please pray that God will continue to lead and bless The Stewardship Fund as we seek to serve God’s Kingdom through effective and ethical stewardship.

Portfolio Update

As seen in the chart below, The Stewardship Fund continues to perform admirably, with a CAGR (Compound Annual Growth Rate) of 17.62% since inception (as of March 30, 2025).  This return will likely decline later this year if the market continues its downward trajectory.  We currently have puts offsetting roughly 2/3rds of the portfolio, which should greatly limit any downside pain; however, our desire continues to be for a significant market decline as the best thing that can happen for The Stewardship Fund’s returns is to be presented with excellent buying opportunities at attractive prices.

As stated in our previous newsletter, the complexity of our current holdings are leading us to limit the detail we are sharing regarding our current portfolio allocation.  We are close to fully invested, but the puts we hold give us significant protection to any downside movement in the markets, which is hard for most investors to follow.  With this being said, we still want to give you an idea of our current market positions.  The following is a rough guide to our portfolio allocation as of March 30, 2025.

Portfolio Allocation

Over 20% 10%-15% 5%-10% 2%-5%

-EPD -META, GOOGL -ENB, MAIN, CTO, ARE, EPR -O, NNN, GOLD, ET

As stated earlier, we are almost 100% fully invested, but we also hold several options contracts to hedge against downside risk at this time.  Once these options contracts expire, we plan on returning to a full and detailed portfolio disclosure so that our investors can follow along in the journey.

Education

Many people who talk to me about investing are interested in learning how to invest.  I have read and listened to countless books, articles, podcasts, and videos about investing over the years.  I would like to take the time to share a few of the resources I have used that have helped me on my investing journey.  When beginning to invest, it is important to first grasp the basics of why we invest, and what we are looking to accomplish, and then move into the details of how to invest wisely.  If you are interested in this journey, here is how I recommend starting:

First Step - Understanding why we invest (from the world’s perspective)

Read: Rich Dad, Poor Dad

Read: The Wealthy Barber

Second Step - Begin to learn to invest wisely

Podcast: InvestED podcast - start at the beginning and work your way through like a class

Alternatively/Additionally: Read Rule #1 and Invested books by Phil Town and Danielle Town

Advanced Step - Learn more in depth

Read: The Intellegent Investor

Continue your investing journey by finding more sources of learning

If you go through all three of these steps you will know 95%+ of what you need to be a great investor.  If you would like additional resources I have begun putting together a “tier list” of investing education.  The top of the list is the best, while the bottom of the list is the worst, going from S down to F.  This list is far from comprehensive, but I believe it can give you some great resources.  I will add to it over time.

S - Best resources

Warren Buffett (Newsletters, Interviews, Annual Meetings), The Wealthy Barber (Book), Benjamin Grahm (Books), Phil Town (Podcast, Books), Howard Marks (Podcast, Books), Rich Dad Poor Dad (Book), Lyn Alden (Newsletter, YouTube, Book)

A - Great resources, but have a few flaws that need to be understood

Jussi Askola (Seeking Alpha, YouTube), Joseph Carlson (YouTube), Unrivaled Investing (YouTube), Morningstar (Website), SeekingAlpha (Website), SimplySafeDividends (Website), Peter Lynch (Books), Samuel Smith (Seeking Alpha)

B - Average resource.  Some good advice, some bad.  It is Important to view these with skepticism and understanding of the topics discussed.

McAlvany Weekly Commentary (Podcast, YouTube), Brad Thomas (SeekingAlpha, Books), Sven Carlin (YouTube), Minority Mindset (YouTube), George Gammon (YouTube), Joseph Hogue (YouTube), Peak Prosperity (YouTube), Daniel Pronk (YouTube), Mark Roussin (Youtube), Hamish Hodder (YouTube), Thomas Invest (YouTube), Economics Explained (YouTube), Bloomberg Television, Joel Greenblatt (Books), Hedgehogging (Book)

C - Worth listening to on occasion, but often seriously flawed in numerous ways

Dave Ramsey (YouTube, Radio, Book, Classes), Mike Maloney (Books, Interviews, YouTube), Meet Kevin (YouTube), Heresy Financial (YouTube), Bravos Research (YouTube), ClearValue Tax (YouTube), Alessio Rastani (YouTube), Andrei Jikh (YouTube), Fatal Investing (YouTube), Griffin Milks (YouTube), The Money GPS (YouTube), Marko WhiteBoard Finance (YouTube), ITM Trading (YouTube), Dividend Bull (Website), Stansberry Research (YouTube), El-Erian (Interviews), SimplyWallStreet (Website), Everything Money (YouTube)

F - I have observed the sources misleading others through lies, misdirection, or by making serious mistakes

Kevin O’Leary (Interviews), Bill Ackman (Interviews), Michael Burry (Interviews, Social Media), Jack Chapple (YouTube), Arcadia Economics (YouTube), Wallstreet Bets (Social Media)

It is my hope that some of these resources will be valuable to you if you are interested in learning more about investing.  I appreciate you all and I thank you so much for your support, partnership, and prayers.  We continue to be excited for what 2025 will bring, and we look forward to sharing the journey with you!

God Bless,

Robert Boyd, III

CEO of The Stewardship Fund