BY WILLLEM VINKE
The Fund’s benchmark was up 2.28% in May, NYMEX WTI CRUDE was up 5.16% on the month with the price rising from $46.69 to end the month at $49.10. German bond yields declined in May with the 10year decreasing from .271% to close the month at .138%. The US 10year treasury increased from 1.834% to finish the month at 1.847% with members of the Federal Reserve Board talking of increasing chances of a June rate hike.
Gold traded down 6% on the month to finish at $1215.32 with silver trading down 10% to finish the month at $15.99. The Euro weakened over the month against the US$ from 1.1451 to 1.1113 and weakened against sterling from 0.7836 to 0.7686.
The Fund* outperformed its benchmark by 85 bps in May. Information Technology, Telecommunication Services and Consumer staples were the best performing sectors in the benchmark whilst the worst performing were Materials, Energy and Utilities. The Fund’s top contributing stocks were Pandora and Wolters Kluwer and the main detractors were SES and Bayer. During the month the Fund exited positions in Qiagen, InterContinental Hotels Group and William Demant, and established a new position in Snam.
* EUR I Class
The views and statements contained herein are those of Lofoten Asset Management in their capacity as Investment Adviser to the Fund as of 6/06/16 and are based on internal research and modelling.