Dear Fellow Wintergreen Fund Shareholder,
EXCERPT FROM THE 2014 SEMI-ANNUAL REPORT SHAREHOLDER LETTER
Wintergreen Fund, Inc. (the “Fund” or “Wintergreen”) outpaced the Standard & Poor's 500 Composite Index (“S&P 500”) during the first half of 2014, with the returns for the Fund's Investor Class (NASDAQ: WGRNX) and Institutional Class (NASDAQ: WGRIX) shares comparing favorably to the S&P 500's return. The Fund's performance during the first half of 2014 benefitted from strong returns from long-term holdings in Birchcliff Energy Ltd. (TMX: BIR), Canadian Natural Resources Ltd. (TMX: CNQ), and Jardine Matheson Holdings, Ltd. (SGX: JM, “Jardine”). Securities that underperformed included MasterCard Inc., Class A (NYSE: MA), Swatch Group AG (SIX: UHR), and SJM Holdings Ltd. (HKEx: 880). The Fund continued to utilize forward currency contracts, which had an overall negative impact on performance during the period.
At Wintergreen, we have a high degree of conviction in our investment process and we have remained consistent with our approach. We continue to rely on our long standing belief that the following three criteria are the hallmark of good investments:
- First, a business that has good or improving economics, having often generated sales and profits in multiple currencies and jurisdictions;
- Second, a management team that is working for the benefit of all shareholders and not just for its own short-term compensation; and
- Third, the security being available at a compelling price.
When there is a change based on Wintergreen's analysis of a portfolio holding in terms of meeting all three of these criteria, it is likely that there will be a change in the Fund's continued investment in that security. The analysis of how the facts change over time can lead to an increase or a decrease in the size of the position; an example of this is our investment in Jardine Matheson. Jardine is a security with solid management that has been working for all shareholders; it is a security that has grown significantly in value during the 9 years the Fund has owned it. Even though the Fund has recently reduced its position in Jardine, we continue to have confidence in management.
“The price of success is hard work, dedication to the job at hand, and the determination that… we have applied the best of ourselves to the task at hand.”
— Vince Lombardi
David J. Winters, CFA
The views contained in this report are those of the Fund's portfolio manager as of June 30, 2014, and may not reflect his views on the date this report is first published or anytime thereafter. The preceding examples of specific investments are included to illustrate the Fund's investment process and strategy. There can be no assurance that such investments will remain represented in the Fund's portfolios. Holdings and allocations are subject to risks and to change. The views described herein do not constitute investment advice, are not a guarantee of future performance, and are not intended as an offer or solicitation with respect to the purchase or sale of any security.
The Fund is subject to several risks, any of which could cause an investor to lose money. The Fund may purchase risk arbitrage securities (securities of companies involved in a restructuring) or distressed companies. These companies may not be successful in their restructuring and securities of distressed companies are generally more likely to become worthless than securities of more financially stable companies. Smaller companies involve substantial risk as these securities are traditionally more volatile in price than larger company securities. Securities rated below investment grade, sometimes called junk bonds, involve a greater degree of risk than investment grade bonds in return for higher yield potential. The Fund may be subject to interest rate risk which is the risk that debt securities in the Fund's portfolio will decline in value because of increases in market interest rates. By participating in derivative securities, the Fund may attempt to hedge (protect) against currency risk which is the risk that the value of foreign securities may be affected by changes in currency exchange rates. Derivatives can be volatile and involve various types and degrees of risks, depending upon the characteristics of a particular derivative. International investing involves certain risks and increased volatility not associated with investing solely in the U.S. These risks include currency fluctuations, economic or financial instability, lack of timely or reliable financial information or unfavorable political or legal developments. These risks are magnified in emerging markets. Short sale risk is the risk that the Fund will incur an unlimited loss if the price of a security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security.
In light of these risks, the Fund may not be suitable for all investors.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. The prospectus and summary prospectus contain this and additional information regarding the Fund. To obtain a prospectus or summary prospectus, please download from this site or call toll-free 1-888-468-6473. The prospectus and summary prospectus should be read carefully before investing. This website is not a solicitation for the Fund outside of the United States.
Foreside Fund Services, LLC, distributor (www.foreside.com)