June 2016 Commentary


Entering 2016, I’d been of the view the coming year would present increasing turbulence that would make it more challenging to balance the imperative of preserving capital with meeting the natural expectations of investors to make money. That has certainly turned out to be the case.

Specifically, each of the two funds entered 2016 with a more conservative positioning driven by:
1.     Various macro uncertainties
2.     The generous valuation afforded equity markets
3.     Our belief that flat was likely the “new up” for equity indices this year

Post Brexit events and ensuing volatility have further solidified my view that the funds continue to maintain a more conservative positioning. However, we are cognizant that the Brexit decision requires us to examine our “road map” and make appropriate changes as it relates to sectors and securities. I provide more details on our 2H 2016 road map later in the commentary...

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