BY WILLEM VINKE
The Fund’s benchmark was up 1.92% in April with Central Banks all saying there is more they can do to shore up their economies, although no direct action was taken. Possibly the biggest surprise was no action from the Bank of Japan.
NYMEX WTI CRUDE was up 20.21% on the month from $38.20 ending the month at $45.92. German bond yields rose in April with the 10year increasing from .152% to close the month at .271%. The US 10year treasury also rose from 1.769% to reach 1.914% before finishing the month at 1.833% after more dovish comments from Federal Reserve board members. Gold traded up 4.93% on the month, starting at $1232 and closing the month at $1293. Iron Ore was strong through the month reaching 474.5 Yuan at one point and ending the month up 20.48% at 456 Yuan. The Euro strengthened slightly over the month against the US$ from 1.138 to 1.145 and weakened against Sterling from 0.793 to 0.784.
The Fund underperformed its benchmark by 232bp in April. Financials, Energy and Materials were the best performing sectors in the benchmark whilst the worst performing were: IT, Consumer Discretionary and Telecoms. The Fund’s top contributing stocks were: Shire, BATS and Novartis and the main detractors were Intertrust, Paysafe and Wolters Kluwer. During the month the Fund established new positions in WorldPay & CTS Eventim.
The views and statements contained herein are those of Lofoten Asset Management in their capacity as Investment Adviser to the Fund as of 4/05/16 and are based on internal research and modelling.