Crescat Capital – Persistent Protection & Growth In The Wake Of Brexit
Since the UK’s unprecedented decision to exit from the European Union overnight, Crescat has been working hard to ensure the continued protection and growth of capital for our investors. As global investors survey the potential fallout of Brexit, we want to make certain our investors are fully aware of what we have been doing to protect capital and seek out profitable opportunities.
While the conventional thinking was that the UK would remain in the EU, global financial markets were rocked by the reverse decision. Our investment discipline of applying and managing risk through diversified fundamental, global macroeconomic themes had us well positioned ahead of the Brexit shock. As a result, Crescat two hedge funds are solidly up for the day, thus far. Our China Credit & Currency Bubble, New Oil & Gas Resources, Aussie Debt Crisis, and Global Fiat Debasement themes have been our strong performing themes in both the overnight markets and since the open of the US markets this morning.
Across all three Crescat strategies, liquidity remains high, and we have ample cash to take advantage of sound opportunities. In both the Crescat Global Macro and Crescat Long/Short hedge funds, we remain fully hedged. While Crescat’s long-only Large Cap strategy is down for the day, it is substantially ahead of the S&P 500 for the day, month, and year. Going into today, we held 38% in cash in Large Cap given the risks we foresaw. We stand ready to put this cash to work in fundamentally sound positions and have added just marginally this morning while exiting one holding with significant UK/EU exposure.
Our returns through May are shown below. Please note our substantial, persistently high risk-adjusted returns compared to the market and other managers across all strategies.
Crescat Capital Net Returns
As the aftereffects of Brexit are assessed, we’ll continue to communicate important updates, but also don’t hesitate to contact us directly. Please be sure to read more in our Q2 Investor Letter which is almost complete and should be out by mid-next week, but also be sure to join us on July 20th for the Q3 Crescat Capital Quarterly Conference Call (formal invites to follow).
Thank you for your support as we continue to work hard to deliver growth and protection of your capital.