JVSakk Group

The fund suffered a sequential monthly loss of 3.44% despite HSI and large cap stocks recovery of 1.84% and 2.11%, this made the fund underperformed by around 5% compared to the respective benchmark.

This was mainly due to the fund exposure were targeted at SMID and A shares high-correlated stocks since April.  On the back of small cap stocks dropped 1.71% and A shares plummeted 7% to 8% in the month, the fund were double hammered negatively. In view of there are signs of market is bottoming, the managers took a strategical decision to trim down further the fund exposure in small cap stocks in taking the loss.

With this prudent decision, the fund exposure in small cap stocks is now less than 20%, with around 50% exposure in big cap stocks and 30% in mid cap stocks. We took this step backward in order to leap forward.

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