Market Commentary

The Mosaic Global Fund had a performance for the month of March of 0.17%, which brings the year to date return to 1.02%.

The Fund saw strong gains in our trend following investments as well as profits in stocks, long bonds and hedge funds. We dramatically reduced the Fund’s commodities position due to the general weakness of this sector this month. Also, we substantially reduced our stock market positions. Stock markets have generated strong gains over the course of the last few months and we feel that it is an ideal time to make sure that your portfolio is structured to withstand an increase in volatility. The “VIX Index”, or the S&P 500 volatility index, is around levels we saw in 2007. We interpret this as complacency amongst market participants and that the risk of setbacks is increased, especially in the stock market.

The US markets have remained strong, although March saw forced government budget cuts. The Dow Jones hit a new all-time high and the S&P 500 is only a few points shy of its all-time high as well. In Europe, the Cyprus “situation” was the main driver for stock markets weakening in the second half of the month. Cyprus’ measures to seize assets from individual account holders created worried consumers across Europe that other countries in similar situations might follow suit.

The Cardea Investment Team is pleased to present our Monthly Mosaic Global Fund Factsheet in a new format. Please review the latest one here. The new format is designed to better explain our investment strategy and how the Fund’s assets are allocated in plain English. Also, we will update the Cardea International webpage in coming weeks. So, stay tuned!

We invite you to contact us about how and why to invest in the Mosaic Global Fund. Please drop us an email at enquiry@cardeainternational.com and we will get back to you immediately.

To your investment success!

Per-Olov Jansson and the Cardea Investment Team – www.cardeainternational.com

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