Hello and welcome to our latest Olympic Wealth Fund newsletter!
This newsletter will give you, our valued investors, a view of the world from an investing perspective, what has happened in that world that may affect our Fund growth, and how we as a company,
are going to manage any issues that arise.
Our Javelin fund is up 19.73% this year so far!
As you have seen, we have been busy growing our Funds with the primary focus to increase your wealth.
Our Javelin Global Fund has grown by nearly +20% this past six months as it benefited from some consolidation in the businesses we own in the UK, together with increased revenues and reduced cost. Since inception in July 2011 Javelin Class A has grown by 89.39% and Class B has grown by an impressive 131.52% since inception in January 2012.
Our current stock holdings are: Monster Beverage Corp, Mosaic company, Suncor Energy, Alibaba Group Holding Inc. and Microsoft Corp. Specific to that group, consumer goods have gained +7.79% while technology has grown +13.24 Our Fund Managers have carefully selected the “best fit” within these sectors and we anticipate continual growth broadly across all our sectors.
Our Marathon Fund has gained + 12.57% this year so far!
Marathon currently owns a stake in: Apple, Gilead Sciences Inc., Boston Beer Co., Union Pacific Corp., Schlumberger Ltd., and Micron Technology Inc. We also have a ‘Put’ call to cover our position on Boston Beer.
We added Gilead Sciences recently, which is one of the leading manufacturers of antiviral HIV drugs which we bought at an advantageous price. They are also a leader in drugs fighting Hepatitis B & C as well as a drug that fights liver disease.
We are pleased to report that Marathon Class A has grown by a staggering 236.07% since inception in May 2013.The outlook for our Funds in the next quarter is fair to cloudy given geopolitical issues.
The outlook for our Funds in the next quarter is fair to cloudy given geopolitical issues.
Has everyone been distracted by Greece?
What about the USD 3 Trillion that has been wiped off the Chinese stock markets recently?
The massive sell-off in the Chinese markets has precipitated more than a quarter of all companies listed on the Shanghai and Shenzhen markets being suspended.
Panic has set in as late entrants that bought into the Bull market at its peaks have now suffered +30% declines in their trading accounts. The Government is desperately trying to slow the correction pace as margin calls threaten to gum up the plumbing. As one analyst put it, “the Government probably thought the bull had run too fast, but who would have thought that the bear can run even faster?”
My response to that question is Warren Buffett who says “be greedy when others are fearful and be fearful when others are greedy.” This is eerily similar to the US markets right before the banking crisis happened as cheap money stoked the markets right before everybody realised that all wasn’t right in the proverbial garden
A Global Perspective – Our Funds
In the US the Dow Jones industrial average (DJI) has risen this year by just over 1% in three months. I don’t think the gain in the index year on year (nearly +9%) fully reflects the lumpy economic recovery.
There appears to be a growing divergence between the market recovery and the economic one that the public feels in their back pockets. Wage growth is sluggish and is below the Federal Reserves expectations.
March wage growth was +2.1%, with the Fed having +3.5% as their target. The reality, therefore, is that while employment figures dipped in March, the public just isn’t feeling confident to spend as they should in a recovery. Sooner or later there will be a market correction, probably when the Fed raises interest rates…
This is singularly the USA’s biggest challenge in the short term: yes gas prices are lower (and therefore the public has more disposable income) but any rise in interest rates might squeeze an already anemic public into closing their wallets and purses inadvertently stalling the economy.
As Janet Yellen the Fed Chairman herself said: “this is not a normal recovery.”
In the UK similar issues prevail, but job growth has risen to an all-time high with some 30M people now in work.
The FTSE 100 index has risen from 6417 to 6585 year to date.
In Greece… over 60% of Greeks voted to reject eurozone cash-for-reform proposals in the July referendum yet the country’s Prime Minister Alexis Tsipras insists it is not a mandate against Europe.
So what happens next with Greece? Will Greeks remain in the euro or exit out of the single currency – which has come to be known as Grexit?
I will wait and hold off commenting on Greece until the quarter end next. By then we will know exactly the future of it, and dare we say the current European Union membership list!
At Olympic Wealth we are focussed on building our brand in the major continents and will strive to give you the best investment experience possible, helping you create wealth and provide for your future.
See you all in September!
Richard Baxter, CEO