Category

Emerging Alpha Eur-Asia

August 2018: Altaica EUR-Asia Emerging Fund: -7.14%

By | Emerging Alpha Eur-Asia

August turned out to be the most devastating month of the year fort he Eur Asian Markets. The losses in the Turkey equity market were dramatic, a loss of about 30% within one month. The second market which was under pressure was China, the trade tariff war with Trump keeps investors worried and this market lost about 3%. We see huge potential for both Turkey and China, these markets are totally undervalued. Both have their own specific opportunities and weaknesses. The Chinese economy does have a strong leadership and economy. Finally the trade dispute will be settled with the USA, after this investors will recognise that the latest market correction made the Chinese equity markets well priced. The Turkish economy…

Read More

July 2018: Altiaca EUR-Asia Emerging Fund: +1.24%

By | Emerging Alpha Eur-Asia

During July the positive momentum for the Emerging Markets returned. We took a little leverage to profit from this sentiment. Especially Eastern Europe performed well with more than 8% return on this part of our portfolio. This was also our largest position. Next to this also India performed well after we returned to this market. Russia was slightly positive during June. The combination of sanctions and negative press in the world still makes this market seen as high risk. At the other side there is China and Turkey. The full blown trade war between the USA and China is hurting the equity markets of China. After decades of tremendous growth and also growing trade surpluses in combination with aggressive industrial…

Read More

June 2018: Altaica EUR-Asia Emerging Fund: -3.98%

By | Emerging Alpha Eur-Asia

A devastating month for the Emerging Markets. Eastern Europe (-11,2%), China (-9,1%) and Pakistan (-7,99%) were leading the pack. The other countries performed a little less negatively. Turkey (-2,47%), India (-1,88%) and Russia (-1,3%) were the best performing markets in our portfolio. We are confident with our positioning. Firstly our 20% allocation to cash preserved the portfolio for more heavy losses. Russia, the largest allocation in our portfolio, apart from the cash position, was also able to stay more or less stable. For Russia we see a huge potential. This, due to the rising oil price in combination with a higher production level, according to the latest OPEC decision, will stimulate the economy. The strengthening of the US Dollar is…

Read More

May 2018: Altaica EUR-Asia Emerging Fund: -1.93%

By | Emerging Alpha Eur-Asia

The Emerging Markets are becoming more and more damaged by the effects of the strengthening of the US Dollar. Next to this, the trade war of Donald Trump is the second factor which is hurting Emerging Markets. Especially China got a significant blow by it. The strengthening of the US Dollar is positive for commodity-rich economies like Russia. In May the Russian equities showed this by a gain of 4.5%. For labour-intensive economies like China and Pakistan the effect is the opposite. We sold our position in mid and small cap equities in China. This to downsize our China exposure. Pakistan lost almost 4% during May. Turkey got hit by the perfect storm. The uncertainty about the elections and the…

Read More

April 2018: Altaica EUR-Asia Emerging Fund: -2.39%

By | Emerging Alpha Eur-Asia

During a volatile month the differences between the range of markets in the portfolio was remarkable. The worst performing market was Turkey with a loss of more than 8.5%. This market together with Russia, minus 5.5% were responsible for the largest part of the loss during April 2018. Also in negative territory we found China (-2.2%) and a marginal loss for Pakistan (-0.05%). At the other hand there was India, this market performed excellent with a gain of more than 5.5%, followed by Eastern Europe with +4.4%. The plans of Mr Erdogan and the planning of the elections of Turkey is causing anxiety to investors. Foreign capital is again running away from Turkey. There is a possibility that Mr Erdogan…

Read More

March 2018: Altaica EUR-Asia Emerging Fund: -3.85%

By | Emerging Alpha Eur-Asia

VOLATILITY IS BACK After a long period of boring markets the volatility came back in the markets, also in the Emerging Markets. This means a wide diversity of performance between the different markets. In this type of unpredictable market movements we decided to leave our positions almost unchanged. Turkey was the market which suffered the most, it lost 8.4% of its value. The shadows of the war in Syria are still influencing the region. More important is the political situation which is becoming less attractive to foreign investors. The possibility of Turkey as part of the European Union is further away than ever. The purchase of Russian weapon systems brings tensions in the NATO. This while Turkey is the second…

Read More

February 2018: Altaica EUR-Asia Emerging Fund: -2.61%

By | Emerging Alpha Eur-Asia

Russia was the surprise of February 2018. With a positive performance of 2.5% it was the best performing market in our portfolio. Russia could benefit from rising oil prices. The markets ignored the increasing negative sentiment in the USA and the UK towarts Russia. Also Pakistan and Turkey delivered a positive returns of about 0.3%. Unfortunately not all markets in our portfolio performed well. Especially China and Eastern Europe suffered a lot from the equity market downturn which started at the end of January. Eastern European markets were down more than 7% and China, our biggest position, lost about 5%. This is a significant negative contribution to the fund performance. Also India, second largest position in the portfolio, lost also…

Read More

January 2018: Altaica EUR-Asia Emerging Fund: -0.02%

By | Emerging Alpha Eur-Asia

The first month of 2018 started in a strange way. The first weeks were euphoric, after that the tides turned. Negative market sentiment started to overpower the upward momentum. Especially in the Chinese and Indian market. Keeping the total result about zero. Turkey delivered positive returns. But the positive addition to the result was marginal. Russia showed two sides of the medal. Our active managed position performed outstanding, more than 5%. The market index performed less powerfully but still a 1.7%. This placed Russia between the best performing positions in our portfolio. India ruined the monthly result. On the investments in India we lost about 5%. Especially the large cap stocks performed pretty bad. China was a mixed market. There…

Read More

December 2017: Altaica EUR-Asia Emerging Fund: -0.66%

By | Emerging Alpha Eur-Asia

At the month closing the largest part of the portfolio was cash. This is to prevent the capital for the negative momentum on most of the Emerging Eur Asian Markets. This resulted in a small negative result after closing more than 60% of the portfolio exposure. At the end of the month we see momentum picking up. Also we see some positivity in most of the TRIC-countries and we expect to buy most of the positions at the start of the new year. The first market which made an impressive turn around was Turkey. This position, the largest at the moment in the portfolio, gained almost 5% in December 2017.  

Read More

November 2017: Altaica EUR-Asia Emerging Fund: -1.89%

By | Emerging Alpha Eur-Asia

The Eur-Asian markets performed quite different from each other during November, from modest gains to substantial losses. We were happy we didn’t have any Turkish position. The MSCI Turkey lost almost 10%. The Russian equity markets lost their upwards momentum. Our position in Russian equities closed the month with a loss of 1.3%. The loss of momentum in this market does imply that we will close our position in the Russian markets at the start of the new month. However, the news about oil production cuts of OPEC will be a positive factor for this market. A positive contribution to the fund came from India. Overall our Indian equity positions gained about 0.5%. However, also the Indian equity market lost…

Read More