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Torray Fund July 2015 Letter: Six Stocks And Traders Responsible For S&P 500 Moves

Torray Fund letter to shareholders for the month ended July 31, 2015.

Dear Fellow Shareholders,

During the first half of this year U.S. stocks were relatively flat, a little unusual considering the market’s volatility. The Standard & Poor’s 500 Index gained 1.2%, and The Torray Fund lost 0.6%. Our portfolio is comprised of 34 holdings representing businesses in a variety of industries and sectors. Few of them ever account for more than 4% of the Fund’s value. Despite this, a few of these positions occasionally disproportionately affect our overall performance. This was the case during the first six months of 2015. Three of our stocks, for different reasons, suffered price declines which, taken together, had a negative 2.4% impact on our result. In each case we believe the declines are temporary and do not accurately reflect the underlying long-term fundamentals of the businesses. In addition, the Fund’s 12% cash reserve earned virtually nothing due to current 0% short-term interest rates. While this may appear to be a disadvantage, especially in a rising market, our view is that in the absence of compelling investment opportunities – the case we see today – it provides funding for new investments when they surface.

Torray Fund: Just six stocks responsible for more than all of the market’s...


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