When less is more: investing with patience and conviction

May 2016 Newsletter | Attentive readers will have noticed in recent months the increasing level of cash being held in the fund. In fact, cash levels have recently been close to levels not seen since the fund’s inception. This is a function of a reduction in both the gross long investments and gross short positions held by the fund. This has not been a function of us, as managers of the fund, taking a view on the direction of the market. Unfortunately we do not claim to have any predictive powers as to the market’s direction at any given time. That our reduction of exposure occurred prior to a significant market correction in January was merely a coincidence. So why had we been reducing our gross exposure? Find out in our May 2016 Newsletter.