Diamond Age Russia Fund: Monthly Letter to Investors – June 2012

In June the Fund gained fractionally +0.42%, and, in fact, started delivering on the Investment Advisor’s promise to meaningfully decrease volatility. Here is the most up-to-date example of weekly returns since the Fund’s portfolio was re-configured to produce more stable and low volatility returns: +2.40% (week ending June 8th), +2.55% (June 15th), -1.50% (June 22nd), +1.97% (June 29th), +0.50% (July 6th), +0.34% (July 13th), -0.38% (July 20th), -0.07% (July 27th).

The Fund’s 15% exposure to the Metals and Mining sector has been a drag on its performance year-to-date, but the Investment Advisor believes that although the world had been slowing, it is impossible to predict the timing and the scope of the world’s central banks’ repeat of reflation efforts; once announcements are made, actions taken, and equities rally, it is not possible to produce outsized returns by chasing run-away markets, unlike in the case when there is a constructive part of the portfolio already built for this purpose.

Eng_DA_June_12

Leave a reply

Your email address will not be published.