You are currently viewing Smart Social Sicav sees the light with a 21% return after several dark years
Madrid

Smart Social is one of the transferable sicavs – those that have 500 shareholders or more and allow money to be transferred to another company or fund without tax toll – that has given its participants the most headaches in recent years.

His strategy, which basically consists of a strong correction of the Nasdaq, has been successful on a few occasions, such as in 2018 and now, when it offers a 21.34% return, with Morningstar data until March 11, a exercise in which the technology index of the US stock market lost 15.4%.

Only with the abrupt fall that the markets suffered during the first months of Covid in 2020 had the sicav managed to show its best face. Until March 30 of that year, the investment company offered a return of 18.53%. But the subsequent rapid recovery that occurred in the stock markets led Smart Social to close with a drop of 28.85%, slightly more than the loss of 24.42% that it accumulated last year.


In fact, this strategy of waiting for a Nasdaq correction in a golden decade for growth companies and, especially, for technology companies, has harmed its shareholders, who lost 10.66% annualized over 5 years and 18.51 % annualized to 3 years.

But the manager of the sicav is confident that the Nasdaq will return to its historical average. “The average price of the last 10 years is 6,475 points, that of the 2010-2020 decade is 5,754 points, that of the last 20 years is 6,099 points and the average price from 1985 to today is 2,621 points. nonsense and absurdity of the Nasdaq price is concentrated in the last two years where the average price is 12,545 points, the average price of the year 2020 is 10,385, that of the year 2021 is 14,547 and in this year 2022 the average is in 15,173 but it has come to trade at 16,564. The route to correct this excess is very significant and I have no doubt that its price will return to its historical average and we have not yet seen its acceleration”, says the manager in the report of the sicav of February.

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