Ori Eyal‘s EVCM fund commentary for the month ended November 30, 2015.

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.

Ori Eyal's EVCM Fund

Ori Eyal's EVCM Fund

Ori Eyal’s EVCM Fund – Commentary

For the month of November 2015, EVCM fund returned an estimated +0.7% net to investors vs. -0.8% for the ACWI Index and -0.1% for the HFRI Equity Hedge Index. Main contributors include: General Motors, Basket of US Financials, Basket of Korean Preference Shares and short USO. Main detractors include: Samsung Electronics, Qualcomm and Golf & Co.

The price of oil continued plunging in November and we took the opportunity to cover our short position in USO (United States Oil ETF). The fundamentals for oil remain terrible. The US has become the world’s largest oil producer and the OPEC cartel is effectively broken. OPEC member countries are struggling with severe budgetary shortfalls and are unwilling to cut oil production. As a result OPEC continues to produce thirty million barrels of oil per day despite a global oversupply. Furthermore, Iran will likely ramp up production by an additional million barrels per day. We think low oil prices are here for the foreseeable future and are looking to re-establish our short oil position on any price spikes.

Sincerely,

Ori Eyal

Managing Partner