The month of May was characterized by broadly falling markets across most asset classes except bonds. Risky assets were hard hit by worries about the European debt debacle and the problems in Greece as well as in Spain, while bond investors, yet again had a strong month.

The Mosaic Global Fund defied the negative market developments and returned a positive 3.45% to its investors with an estimated year to date return of 7.07% for the EUR share class. Our trend following holdings finally got a chance to take advantage of the increased volatility they have been waiting for. The well-known, VIX or volatility index, rose from around 17 to 24 during the month, giving trend followers loads of opportunities to participate in extended moves in such varied markets as bonds, which was the top producer, cotton, crude oil as well as the USD.

Looking ahead, our view of the stock markets is the same as last month. We feel that the current medium-term downtrend in stocks represents a good opportunity to again increase our stock market exposure. We are still within the normal range of a downward move in a more established upward trend. As last month, the sentiment among investors is still really negative, even more so than last month. Such a negative sentiment has historically proven to be a good indicator of at least medium-term market bottoms.

We look forward to speaking to those of you interested in hearing more about how we approach the task of growing your assets at a reasonable pace, with a strong focus on capital protection, and how we do this in a very different way. Please contact us here,

Happy Investing
The Cardea Team

Per Olov Jansson
CEO Cardea International


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