Europe in November 2015

BY WILLEM VINKE

Monthly Fund Commentary
22 Dec 2015

BY WILLEM VINKE

The Fund’s European benchmark rallied 2.68% in November, outperforming lacklustre US equity markets as investors’ focus remained on the respective monetary policies. The divergence between the central banks saw the German 10year fall to 0.48% from 0.52%, while 10year treasuries rose from 2.15% to 2.21%. Brent closed down 9.98% on the month, at $44.61, and gold came off with it, ending November at $1065.8. The strengthening dollar, alongside volatility in the commodity space, saw Emerging markets lag their developed counterparts.

The Fund outperformed its benchmark by 0.57% in November, ending up 3.25%. The Fund benefitted from a lack of exposure to basic resources; the sector fell 7.2% on the month as OPEC output increased and individual stock news weighted on the sector. The top performers were Paysafe, William Demant and Swedish Match, the biggest losers Accor, LivaNova and Shire. During the month the Investment Adviser closed the position in AutoTrader, and a new position was established in Reynolds American.

The views and statements contained herein are those of Lofoten Asset Management in their capacity as Investment Adviser to the Fund as of 21/12/15 and are based on internal research and modelling.