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Alternative Market Briefing

Hedge fund Agilith North American Diversified Fund ends Q1-13 up 11.4% on strong markets

Monday, April 29, 2013

From Precy Dumlao, Opalesque Asia – Toronto, Canada-based Agilith North American Diversified Fund which is managed by Agilith Capital, ended the first quarter of the year up 11.4% (+1.1% in March) on strong market equities.

In its monthly report to investors, Agilith said 2013 started with a solid market rally as some of the overriding macro risks ended up having a limited impact on markets. In the first quarter of this year, the Dow Jones Industrial Average and S&P rose by 12.0% and 10.7% respectively, while the TSX, hurt by the underperformance of energy and materials, rose by 3.4%.

"Probably one of the most significant developments influencing broad capital flows has been the demonstrated commitment of both the Japanese government and the Japanese Central Bank to take actions to fight deflation," Agilith said and added, "The result has been downward pressure on the Yen, and Treasury yields, which has resulted in the flight of capital to higher yields elsewhere. The Nikkei rose almost 25% this past quarter and in our view the actions within Japan have also spurred demand for U.S. Treasuries, (the U.S. 10‐year treasuries carry a 110 basis point premium relative to Japan’s 10‐year note)."

The hedge fund is looking at corporations to offer an excellent position to take advantage of inexpensive debt. It added that on the aggregate, corporations continue to carry combined cash levels near 50‐yea......................

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