The market

The markets have found hopes in the “visible hand” of central banks to offset all the political turmoil of 2016. (Referring to the invisible hand of Adam Smith)

Our portfolio

Our investments continue to create wealth, having performed both in the first half of 2016 with a bear markets and in the second half with bull markets. This performance was achieved without any major reallocation. We bought at depress level an infrastructure service company. The company is suffering from a catastrophic execution on a specific project and from the weakness of investments in the oil sector in general, although oil currently represents a small part of its turnover. As usual, we took advantage of the rebound in the markets to sell one of our positions with hefty capital gain and the remaining shares of our setbacks of late 2015 in the commodities sector with a small profit. Our protection penalized us during the second half of the year, contrary to the first, but this drawback is more than offset by the wealth creation in our portfolio.

Going forward

Although we want the ECB to succeed in its accommodative policy, our value approach guides us towards taking profits that are less and less compensated by new purchases. We remain focused and humble in front of the unprecedented economic challenges that the world is facing, and especially with regard to imbalances that may materialize in the future.