Nanuk Asset Management announces their performance summary for the fund as at 30 April 2014

The Fund reported a loss of 2.9% in April, which has resulted in a 1-year rolling return of 17.1% with a corresponding 1-year volatility of 11.0%.

April saw disparate returns for equities across geographies and sectors. Technology stocks fared poorly and the LED, solar and Chinese renewable energy sectors all fell during the month. Long positions in these sectors were the main contributors to the Fund’s negative performance for the month.

While exposure levels to these sectors were adjusted during the month, the attached monthly investor letter offers further insight into why we believe these sectors provide compelling opportunities in the short and longer term.

The Fund did profit from positions within these sectors and from stocks related to the longer term theme of vehicle electrification. Notable gains made from long positions in West Holdings (a Japanese solar system integrator), Chaowei Power (a Chinese manufacturer of e-bike batteries) and again from Maxwell Technologies (a US ultra-capacitor manufacturer).

Finally, a topic that we have discussed in previous investor letters is our belief that the world is on the verge of dramatic changes as a result of resource constraints and the commercialisation of new technologies, and that this revolution will be less and less reliant on any regulatory assistance. An article that discusses this topic, as well as addressing some of the myths and realities of clean technology, has been produced by McKinsey & Company and can be found here. For those of you that may be interested in delving deeper into the topic McKinsey have also recently published a book titled ‘Resource Revolution: How to Capture the Biggest Business Opportunity in a Century’, the details of which can be found here.

If you require any further information regarding Nanuk, please contact me using the details below.

Regards