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Altaica Sustainable Equity Long Short

May 2018: Altaica EUR-Asia Emerging Fund: -1.93%

By | Altaica Sustainable Equity Long Short

The Emerging Markets are becoming more and more damaged by the effects of the strengthening of the US Dollar. Next to this, the trade war of Donald Trump is the second factor which is hurting Emerging Markets. Especially China got a significant blow by it. The strengthening of the US Dollar is positive for commodity-rich economies like Russia. In May the Russian equities showed this by a gain of 4.5%. For labour-intensive economies like China and Pakistan the effect is the opposite. We sold our position in mid and small cap equities in China. This to downsize our China exposure. Pakistan lost almost 4% during May. Turkey got hit by the perfect storm. The uncertainty about the elections and the…

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April 2018: Altaica EUR-Asia Emerging Fund: -2.39%

By | Altaica Sustainable Equity Long Short

During a volatile month the differences between the range of markets in the portfolio was remarkable. The worst performing market was Turkey with a loss of more than 8.5%. This market together with Russia, minus 5.5% were responsible for the largest part of the loss during April 2018. Also in negative territory we found China (-2.2%) and a marginal loss for Pakistan (-0.05%). At the other hand there was India, this market performed excellent with a gain of more than 5.5%, followed by Eastern Europe with +4.4%. The plans of Mr Erdogan and the planning of the elections of Turkey is causing anxiety to investors. Foreign capital is again running away from Turkey. There is a possibility that Mr Erdogan…

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March 2018: Altaica EUR-Asia Emerging Fund: -3.85%

By | Altaica Sustainable Equity Long Short

VOLATILITY IS BACK After a long period of boring markets the volatility came back in the markets, also in the Emerging Markets. This means a wide diversity of performance between the different markets. In this type of unpredictable market movements we decided to leave our positions almost unchanged. Turkey was the market which suffered the most, it lost 8.4% of its value. The shadows of the war in Syria are still influencing the region. More important is the political situation which is becoming less attractive to foreign investors. The possibility of Turkey as part of the European Union is further away than ever. The purchase of Russian weapon systems brings tensions in the NATO. This while Turkey is the second…

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February 2018: Altaica EUR-Asia Emerging Fund: -2.61%

By | Altaica Sustainable Equity Long Short

Russia was the surprise of February 2018. With a positive performance of 2.5% it was the best performing market in our portfolio. Russia could benefit from rising oil prices. The markets ignored the increasing negative sentiment in the USA and the UK towarts Russia. Also Pakistan and Turkey delivered a positive returns of about 0.3%. Unfortunately not all markets in our portfolio performed well. Especially China and Eastern Europe suffered a lot from the equity market downturn which started at the end of January. Eastern European markets were down more than 7% and China, our biggest position, lost about 5%. This is a significant negative contribution to the fund performance. Also India, second largest position in the portfolio, lost also…

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January 2018: Altaica EUR-Asia Emerging Fund: -0.02%

By | Altaica Sustainable Equity Long Short

The first month of 2018 started in a strange way. The first weeks were euphoric, after that the tides turned. Negative market sentiment started to overpower the upward momentum. Especially in the Chinese and Indian market. Keeping the total result about zero. Turkey delivered positive returns. But the positive addition to the result was marginal. Russia showed two sides of the medal. Our active managed position performed outstanding, more than 5%. The market index performed less powerfully but still a 1.7%. This placed Russia between the best performing positions in our portfolio. India ruined the monthly result. On the investments in India we lost about 5%. Especially the large cap stocks performed pretty bad. China was a mixed market. There…

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December 2017: Altaica EUR-Asia Emerging Fund: -0.66%

By | Altaica Sustainable Equity Long Short

At the month closing the largest part of the portfolio was cash. This is to prevent the capital for the negative momentum on most of the Emerging Eur Asian Markets. This resulted in a small negative result after closing more than 60% of the portfolio exposure. At the end of the month we see momentum picking up. Also we see some positivity in most of the TRIC-countries and we expect to buy most of the positions at the start of the new year. The first market which made an impressive turn around was Turkey. This position, the largest at the moment in the portfolio, gained almost 5% in December 2017.  

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November 2017: Altaica EUR-Asia Emerging Fund: -1.89%

By | Altaica Sustainable Equity Long Short

The Eur-Asian markets performed quite different from each other during November, from modest gains to substantial losses. We were happy we didn’t have any Turkish position. The MSCI Turkey lost almost 10%. The Russian equity markets lost their upwards momentum. Our position in Russian equities closed the month with a loss of 1.3%. The loss of momentum in this market does imply that we will close our position in the Russian markets at the start of the new month. However, the news about oil production cuts of OPEC will be a positive factor for this market. A positive contribution to the fund came from India. Overall our Indian equity positions gained about 0.5%. However, also the Indian equity market lost…

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October 2017: Altaica EUR-Asia Emerging Fund: +3.16%

By | Altaica Sustainable Equity Long Short

Asia performed well during October. This resulted in a positive return for the fund of 3.16%. China and Taiwan were the outperforming countries. Both countries were showing an impressive gain of more than 8%. Also India did an excellent job. The economy is in a revival phase. Confidence of investors and companies from outside India is growing. This is resulting in more investments and jobs for the Indian economy. Our Indian equity positions rose by more than 6%. At the other side we find Russia, that delivered a marginal positive result during October, this after a couple of strong performing months. This relative small positive results is however a little unexpected, because the recovery of the oil price was quite…

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September 2017: Altaica EUR-Asia Emerging Fund: -0.32%

By | Altaica Sustainable Equity Long Short

Several emerging markets were loosing ground. All together the fund lost 0.32% during September. Still we have no position in Turkey, we see some positivity starting, but this is still not enough to build up our position in this volatile market. Our relative small position in Russia was gaining a little more as 2%. This market is gaining momentum and we see possibilities for extending our stake in this undervalued market. India is facing difficulties. The effect of the actions taken by the government to reduce the non-official economy is negative. The economic development has weakened. During September this market lost more than 2% of its value. The markets of China developed quitely and positively. Our positions were gaining about…

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August 2017: Altaica EUR-Asia Emerging Fund: -0.53%

By | Altaica Sustainable Equity Long Short

The Indian region and especially Pakistan were responsible for the negative result in August. All other markets performed positively.   We closed our position in Turkey. Markets conditions were unstable and our indicator turned into negative territory. We also lowered our position in the Russian market. The long-term buy signal is troubled by the latest drawdowns. We kept one third of our position by keeping our stake in Prosperity Russia. This year this fund outperformed the Russian equity index massively. In August this fund gained more than 10%.   The Indian markets lost 3% of their value. Not withstanding this loss we didn’t change our position. The cruel market correction of almost 15% of Pakistan came as an unpleasant surprise….

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