Bronte Amalthea Fund August 2016 Commentary – Avoiding the “hot shorts” commonly found on Seeking Alpha and even on Twitter – ValueWalk Premium
Bronte Amalthea Fund

Bronte Amalthea Fund August 2016 Commentary – Avoiding the “hot shorts” commonly found on Seeking Alpha and even on Twitter

John Hempton‘s Bronte Amalthea Fund commentary for the month ended August 31, 2016.

Also see Q2 hedge fund letters

The Bronte Amalthea Fund is a global long/short fund targeting double digit returns over the long term, managed by a performance orientated firm with a process and portfolio that is genuinely different. Objectives include lowering the risk of permanent loss of capital and providing global diversification without the market/drawdown risks typical of long-only funds. A highly diversified short book substantially reduces risk and enables profits to be made in tough markets. The fund is an alternative to equity investing, and complement to most portfolios, and is typically an excellent diversifier which may lower overall portfolio risk.

Bronte Amalthea Fund
[drizzle]
This month (unlike last) the fund could not keep up with resurgent global markets. With the VIX (crudely – the market’s fear gauge) complacently sitting at post Brexit lows across August and investor optimism remaining high the shorts proved a drag on performance. The investment adviser prefers however to retain a significant short book with the potential to reduce the cost of future market declines.

Bronte Amalthea Fund

Bronte Amalthea Fund

Whilst our long book rarely changes – being based on quality deep value stocks, we are continuously curating our numerous short positions. The opportunity here is to rebalance and high grade the shorts – adding diversity and avoiding the “hot shorts” commonly found on Seeking Alpha and even on Twitter. This is bread and butter portfolio management that over time reduces risk and delivers value.

Bronte Amalthea Fund
[/drizzle]

LEAVE A COMMENT


X
Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

What’s missing today for many investors is real, straightforward advice.

Especially when it comes to Value Investing and Hedge Funds. 💵

That’s what makes ValueWalk Premium different. Some would say we’re “unusual.”

Our subscribers look forward to clear, easy-to-understand information they can act on.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers

0