Long Term Capital Fund Newsletter (February)


Vol. Mulberry. February 2023 – Long-Term Capital Fund Newsletter

In this edition, we shine a spotlight on the much-revered mulberry tree, symbolizing faith, growth, and harmony with nature. These attributes don’t merely define this beloved tree; they also encapsulate our approach to your investments. We aim to foster faith and enable growth in your financial journey, much like the mulberry tree standing firm through the seasons.

This month, we examine the subtleties of our fund’s performance, revealing how we have skillfully maneuvered through the flux of the market and leveraged the momentum of promising trends, much like the mulberry tree’s flexibility in different conditions. We will dissect the recent market developments and strategic decisions that have contributed to our resilient, yet dynamic growth. So, let’s embark on this month’s journey together, sheltered by the enduring presence of the Mulberry Tree.

To dive deep into our fund’s performance for February and understand how we navigate the shifting market landscapes, enter your details below.

Further reading from Kamet capital

INCOME INNOVATION FUND FACTSHEET (Sep 2024)

What an eventful month! The Fed cut rates by 50bps, and China announced both monetary and fiscal stimulus ahead of the Golden week. While the Chinese government’s policy pivot was surprising, it is critical for its property sector to stabilize. With China’s high rate of home-ownership, falling property values creates a falling wealth effect which would negatively affect consumer confidence and lead to dampened consumer spend.

We view this as China’s ‘Whatever it takes’ moment and believe it will underpin confidence going forward. While the path to recovery remains uncertain, Chinese equities continue to represent good value. Our focus on high-quality businesses, strong cash flow and a shareholder-friendly dividend policy continue to give us confidence in delivering strong performance through market cycle.

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INCOME INNOVATION FUND FACTSHEET (Aug 2024)

August was a tale of two halves – it began with high volatility (VIX soared to 65intra-day) but ended the month positively despite China’s muted recovery weighing on sentiment. Increasingly, we start to see value emerging in the Chinese consumer sector even as confidence remains at all-time low.

Having anticipated some market volatility, we took the opportunity to redeploy our cash positions. We initiated new positions in a Chinese housing platform company and diversified globally through a global aircraft lessor company and a US residential mortgage REIT. Our new positions are leaders in their respective verticals that we believe have strong business models with unique competitive advantages including economies of scale, strong corporate culture and sound capital allocation policy.

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