The Mosaic Global Fund had a -2.86% return for the month of Jun.
The ongoing event in Greece and Chinese stock markets were the main focus points for the month. Greece is rapidly moving closer to a sovereign default and due to serious worries of bank runs the government took the hard decision to close the countries banks. European stock market responded to the increased insecurity with further volatility and sell offs in stocks especially during the second part of the month.
Chinese stocks have also been in focus after a block buster run that has accelerated during the last few months. After this tremendous run up sparked by strong quantitative easing by the People’s Bank of China’s the stock market reversed to the down side around mid-June. This resulted in an almost 20% loss in just two weeks with investor’s running for the exits. In the US we saw continued strong economic data coming in despite the European turbulence. The positive data helped push government bond yields higher with the expectation of an earlier raise in interest rates by the FED.
The Mosaic Global Fund had a negative month due to losses from negative trends in both stocks and bonds. The major shift from European stocks into US stocks during the end of May beginning of Jun helped minimize losses. Looking at some of the European stock markets, the FTSE in the UK for example, lost just under 7% for the month with Germany’s DAX losing just over 4% while the US S&P 500 capped losses at -2.1%.
Investing over the last 6-9 months has been relatively testing for trend following investors and especially over the course of the last few months where the fund has shown minus results. Fortunately for us this generally means that some large returns are around the corner and looking at the current draw down (losses from previous performance high in January) we can see that they are still relatively contained in the 4-6% range.
Having gone through last autumn with very minimal volatility in the various large down moves in the stock markets, protecting our capital in a very satisfying way, we feel comfortable that when new trends emerges in the coming month/s we will have the opportunity to take advantage of them and extract strong risk-adjusted returns. Remember, investing is a marathon not a sprint, and very often when we have seen a few tough months performance wise we are much closer to a strong performing period.
Please reach out to us on this email firstname.lastname@example.org, or give us a call on +352 202 033 27, to find out more about the Mosaic Global Fund and how the Fund is managed with our Trend and Momentum Filters. We look forward to speaking with you soon.
To Your Investment Success!
Per-Olov Jansson & the Cardea Investment Team