The market

Markets remain bullish helped by the slow worldwide recovery. Markets have generously valued those improvements over a lengthy growth cycle, as well as accommodative policies.

Our portfolio

Our investments acquired in the past years are delivering substantial gains, largely offsetting the decline in premiums of our hedging options. The negative impact of our protection will be lower than in the past, unless we find ways to capitalize on the flattening volatility as we did in 2014. Now and then we find some opportunities in the corporates activities to sustain our allocation. We have obtained a free stake in a biotech company and are patiently waiting the outcome of a muddy merger in order to own a new leading distributor.

Going forward

We find that our past purchases, at a time when the economic background was paralyzing investors, are exceptionally profitable. Today we stick to our value approach, as a seller, while the market is buying at the lowest yield ever seen. Unless we remain in the hazardous situation where growth and free money rule the world, we will find some fair compounding opportunities for our cash.