Monthly Letter September 2015

In our last monthly le er we stated that we believe that the market correc on we are currently experiencing is just that: a correc on rather than the start of a prolonged bear market. Nothing in the last month has made us change our minds. Our overall gross exposure is quite close to normal levels, c170% (average since incep on is 159%). Our net exposure is slightly higher than normal, just shy of 60% (average since incep on is 44%). Our value-at-risk is higher than what is normal at these gross and net exposure levels. This is due to the elevated vola lity the last few months. At the low point in September the EuroSTOXX50 was down c21% from the high in April. This is a substan al correc on for an asset class that is not in bubble territory. For poten al bubbles, look at property in a city centre of your choice.

Madrague had a tough month in September in absolute terms, -2.70%, but has fared rela vely well in the correc on. This brings the year to date performance to +3.11%.

Our best sectors were the Oil, Business Services and Technology sectors. These sectors all showed a small posi ve absolute performance. Worst performers were the Telecom and Capital Goods sectors.

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