The Mosaic Global Fund made an estimated -0.13% for the month of April.
During the month, the European Central Bank (ECB) declared that it will buy assets on a large scale to fight deflation. As a result, European bond prices have been pushed substantially higher, and bond investors have again gladly been purchasing debt from countries like Portugal and Greece, which not too long ago had large problems attracting investors. Both the United States and Europe have imposed sanctions on Russia and the continued uncertainty over the situation in the Ukraine led to a lot of volatility during the month. A big question is how much will Russia actually suffer from these sanctions? Will they have any effect at all?
The Mosaic Global Fund was a few basis points minus for the month with our trend followers and hedge funds performing the worst and with positive returns in our bond holdings. We are looking forward to the coming months and expect markets to break out of the range bound activities that they have been in for quite some time. This will create opportunities for some strong performance in the second part of the year. When we are looking at the fluctuations in the strategies that we use to manage the Fund we can clearly see that a phenomenal time to buy the Fund is normally when we experience a few months of negative returns. This is exactly what has happened in the beginning of the year and we expect this to be strongly reversed in the coming months. Therefore we suggest that investors look at initiating a subscription or adding to current holdings at this time.
We have been mentioning Emerging Markets over the course of the last couple of months and these markets continue to look strong. Generally, Emerging Markets are experiencing almost historically low valuations and it would make sense for these markets to start to outperform developed markets in the near term. We will continue to follow this going forward.
We continue to receive a lot of requests from investors about our upgraded investment framework and we are more than happy to schedule a time for further discussions at your earliest convenience. Please get in touch on firstname.lastname@example.org, or give us a call on +352 202 033 27, to find out more. We look forward to speaking with you soon.
To Your Investment Success!
Per-Olov Jansson & the Cardea Investment Team