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From Komfie Manalo, Opalesque Asia:

Zurich-based boutique Swiss Investment Managers’s (SIM) said its Director’s Dealings Fund (DDF) closed October up 2.13% (+16.06% YTD) and the fund manager expects to see a decline in buying and selling by company directors, especially in the U.S. during the remaining quarter.

In its monthly communication to investors, a copy of which was obtained by Opalesque, SIM said that the European and U.S. Director’s Confidence index fell to 57.8 from 90.76 in September and its high of 99.55 on 19th August (as against its average of 59.4 since November 2009). But at the same time, the European and U.S. "buy sell" ratio dropped to 0.17 (1.77 in Sept), and well below its average of 0.41 since November 2008.

Throughout October, the institutional tax-loss selling that led to the depressed prices in September was completely reversed into buying last month.

"While trading volumes should have picked up towards the end of October when the peak of tax-loss selling occurs in the US, in fact we have seen a decline in the total number of transactions. For the recent rally to be sustainable, we also need to see continuous and relatively strong demand for shares from Company Directors. Based on Directors’ transactions and sentiment as described below, we continue......................

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