Positive fund performance since May / outperformance through long strategy
The fund performance since the repositioning of the fund in the spring was very positive, especially in comparison to DAX, EURO STOXX 600 as well as the Peer Frankfurter Aktienfonds für Stiftungen and MainFirst Top European Ideas.
High gains in 2019 can be partially ascribed to the stark decreases in the previous fourth quarter of 2018. Indexes have clearly developed better over a 15-month period. But it should also be noted that in the very critical phase of December 2018, there was a clear outperformance of the security-minded Mellinckrodt strategy.
On the macro side and for the question of how much hedging is required, we will be collaborating with Larry McDonald from The Bear Traps Report. This won’t prevent mistakes in the future, but we are confident that this approach will enable us to reduce negative phases like the one in the first quarter of 2019.
The stock portfolio is and will remain geared to quality stocks in industries we consider interesting. We will use the liquidation of the fund to adjust the portfolio in our new product to the changing situation in 2020. However, the weight of key positions will remain the same.
Up until the last trading day of 2019, the fund was still fully invested. As we’ve been pointing out, our fund was always invested highly liquid. As a result, the sale of stocks on Friday, January 3, took less than three hours. Due to the time difference, a position from Japan can’t be sold until this coming Monday. All other stocks have been sold.
In this coming week it will be determined, at which point the fund shares can be sold by the investors. We will provide information on this matter in a separate email. In addition, we’ll provide more information on our new product, which will launch in mid-January and for which buy orders can be placed starting next week.
For questions, please contact us directly by phone or email.