It’s been roughly four months since we launched our hypothetical CX Fund, a portfolio of stocks from 10 companies we felt were delivering a best-in-class customer experience. Our thesis was that in today’s market where customers often value experience over price, companies that offered a great customer experience should hold an advantage over those that did not and, thus, have better business results.
As we discussed in our previous post on the fund, narrowing our portfolio down to just 10 companies was difficult, but at the time, we felt we picked the best companies we could. So, now that it’s been a little over a quarter since launch, let’s revisit the fund to see how we did.
Customer Experience Fund Performance
Overall, the fund has done okay. As of the time of publishing this post, its value has grown 6.8%. The top performing stock in the fund since inception is Apple (up 28%). The worst performing stock over this period has been Nordstrom (down 29%). When compared with the DOW over the same period, the CX Fund slightly underperformed (8.7% vs 6.8%). Compared to the S&P, the fund performed almost exactly the same.
So, what have we learned? Well, it’s probably still too early to draw any big conclusions. But overall, if we remove Nordstrom (is anyone bullish on retail?), we have a fund that performed pretty decently. At Glia, we still believe that delivering an amazing customer experience is key to delivering great business results.