BY WILLEM VINKE
October saw markets rally strongly, over 8% in Europe, alongside strong performances from most other global equity indices. This was a broad-based rebound from the late summer drawdowns as well as in part a short squeeze. Market volatility was lower in October as investors awaited decisions from the US Fed, the ECB and the BoJ. With regard to reaching inflation targets, Mario Draghi was quoted as saying the ECB would no longer “wait and see, but work and assess.”
In the bond markets we saw the German 10year fall to 0.52% from 0.59%, while 10year treasuries rose to 2.15% from 2.04%. Brent closed largely unchanged on the month, at $49.45, while Gold rose to $1,141.
The Fund was in-line with its benchmark in October. This was a satisfactory performance in a month when the benchmark rose 8.29%, driven by Autos, Basic Resources, Oil & Gas and Insurance. The top contributors to performance were SAP, Wolters and Shire. The biggest losers were Qiagen, LivaNova and Paysafe. A new position was established in Intertrust, and no positions were closed. Sorin’s merger with Cyberonics led to a company name change as of October, hence the appearance of LivaNova.
The views and statements contained herein are those of Lofoten Asset Management in their capacity as Investment Adviser to the Fund as of 18/11/15 and are based on internal research and modelling.