The Mosaic Global Fund had an estimated performance for the month of December of -0.66%.
During the month we had indications of a stronger recovery with US employment, and Chinese economy showing improvements. This helped investors feel a little bit more warm and cozy about the future and brought stock markets higher. At the absolute final moments of the year a deal was sealed in the US Congress regarding an acceptable alternative to the threatening “Fiscal Cliff” and stock markets reacted positively to the solution starting up the New Year with strong gains.
The Mosaic Global Fund made gains in our equity holdings as well as hedge funds for the month. Our trend followers got back in the game after struggling for several months. On the losing side we had bonds and TIPS. Both sold off relatively strongly during the month and together with a generally weakening commodity complex led to a negative month for the Fund.
Referring back to our headline in regards to volatility– most investors are actually doing everything they can to avoid volatility. This we see as completely wrong. What’s needed instead is to make sure that we have as many different return streams as we can that will counteract when the volatility hits. This is why we have a large portion of our assets with trend followers in our Fund, and it is also why we are selecting asset classes on strength instead of including all asset classes at every point in time.
The backdrop of this, of course, is that when markets across asset classes, are very range bound like we have seen during quite some time now, not really moving anywhere, we do suffer. So why are we bringing this up? The reason is simply that most people are not embracing volatility and may suffer when it hits again. Since we are not in that camp, and feel convinced that we can maneuver these type of markets with good results, we would like to start a conversation with you about the benefits of our investment style, ideally before markets start to get really volatile again, and the long only portfolios without protection or alternative investments included suffers, as they have done many times in the past.
Please drop us a quick email right now with the subject line “phone call” to email@example.com and we look forward to speaking with you in the coming week/s.
Cardea Investment Team
Per Olov Jansson
CEO Cardea International