The Hermantown-based Teberg Fund suffered a 9.44 percent negative return during its last fiscal year, the company said in its annual report, which covers the period from April 1, 2019, to March 31, 2020. Teberg cited impacts from the COVID-19 pandemic as the cause.

In the two months since the report was issued, however, the Teberg Fund has recovered strongly from the virus-related downturn. Its price was $12.78 per share Wednesday morning, up from a low of $9.15 in mid March.

“Each of us has likely experienced times when life was going along as expected and then everything changed in a flash. A death of a loved one, a health issue or any number of life events can suddenly alter the way we live. It seems few of us, however, could have imagined a time like this when all our lives seemed to change overnight due to a shared threat – the deadly COVID-19 pandemic,” Portfolio Manager Curtis A. Teberg wrote in the report. 

The fund began its fiscal year at $11.66 and experienced a high of $13.50 on Feb. 19. A month later, the share price dropped to a low of $9.15. The 9.44 percent decline compares with a -13.38% decline for the Dow and a -6.98% loss for the S&P 500.

“In tough markets, there are often certain industries and sectors that are unscathed, but the virtual halt to economies around the world seemed to spare very few. The same was true of nearly every investment other than cash, with most stocks and mutual funds losing value as fear and panic selling spread,” Teberg said. 

Winners in the fund included an ETF tracking the NASDAQ, which gained slightly less than 6% and two tracking the semiconductor sector, which gained just over 8% and 10% each. Four high-yield bond positions held up relatively well, even though all ended in the negative. Two lost under 4%, one lost under 6% and one lost under 9%. 

The most damaged holdings in the portfolio were ETFs tracking the Russell, Small-Cap and Mid-Cap indices, with losses hovering around 25% each. The financial sector ETF and a stock mutual fund dropped approximately 19% and 18% respectively. A single stock holding lost close to 10%.

Teberg concluded by saying it made more sense to stick with a fundamentally strong portfolio than to sell it when the market was down.

“The only options then were to sell at significant losses, as many investors did, or to keep the portfolio intact. Even though March was a bloodbath, there were days when the market rose dramatically, and the Dow managed to regain some of its loss, most notably with the historic rise on March 24,” he wrote. “For now, the plan is to objectively focus on the potential strength or weakness of each holding as we navigate this unchartered market climate, with the goal of coming out as sound as possible when we finally get back to normal, whatever that looks like.”