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Alternative Market Briefing

Balkan Emerging Frontiers Fund 10.19% YTD, bets on medium-term investing

Wednesday, August 28, 2013

Precy Dumlao, Opalesque Asia for New Managers:

The Balkan Emerging Frontiers (BEF) Fund was up 1.85% in July (+10.19% YTD) and posted better returns than other mutual funds investing in the Western Balkans regions, the firm said as it celebrate its third year anniversary. Indeed, the fund was established in April 2010, and began investing on August 1st of the same year. Total return within 36 months from the start of investing is 73.39%.

Other funds made 20-30% loss in this period, while BEF Fund generated more than 70% of net income for you, the fund manager said in a monthly investor letter. Practically: 100,000 EUR investment in other Western Balkan mutual funds three years ago would now result in holdings of only 70,000 to 80,000 EUR, while same amount invested in BEF Fund results in 170,000 EUR. Those of you holding the investment in BEF Fund in this period, now have at least 110% (1.7/0.8) or even more than 140% (1.7/0.7) higher value of holdings comparing to those holding their investment in other Western Balkan funds for the last three years, it he added.

According to the manager the two reasons for their good returns are found in the active management quality and the medium-term approach to investing.

Scrambling for short-term results and jumping from trend to trend usually ends miserably. The reasons are many - higher transaction costs, typically higher tax liabilities and most importa......................

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