Value Investing

Ori Eyal’s EVCM Fund October 2015 Commentary

Ori Eyal‘s EVCM Fund commentary for the month ended October 31, 2015.

EVCM Fund Overview

EVCM is a focused global value fund. Our goal is to generate the highest possible long-term returns without risking a permanent loss of capital. Employing a disciplined value investing approach, we search the world for the best investment opportunities based on long term business fundamentals. We then construct a long-biased, concentrated portfolio consisting of 20-40 positions, mostly stocks, trading at deep discounts to their intrinsic business values.

Our in-depth research explores the merits of each potential investment in the context of a global market. Many of our investments benefit from multiple economic tail winds as they operate in emerging markets that are experiencing rapid economic growth and development. We use little or no leverage and demand a wide margin of safety for each investment.

EVCM Fund

EVCM Fund

EVCM Fund Commentary

For the month of October 2015, EVCM fund returned an estimated +4.9% net to investors vs. +7.9% for the ACWI Index and +3.0% for the HFRI Equity Hedge Index. Main contributors include: Howard Hughes Corp, Samsung Electronics, General Motors, Basket of US Financials, Qualcomm, Isras Investments, LG H&H and Basket of Korean Preference Shares. Main detractors include: Golf & Co and Short TNA ETF.

Most of our investments performed well in October driven by a global stock rally markets and good company reports. Particularly noteworthy is our basket of Korean Preference shares which benefited from both rising stock prices and a narrowing of the price discount between Korean common and Korean Preference shares. We are taking advantage of these absolute and relative price movements in Korea to gradually shift our basket holdings into those Korean Preference shares with the widest relative price discount. We continue to see large potential upside in this basket.

Sincerely,

Ori Eyal

Managing Partner