It’s been a long time since a four-sector commodity equity fund zapped the S&P 500, the TSX and global equities.
The Coxe Fund was trading at $10.04 in July 2008. Then the world began to hear about man-made structured products that the ratings services said were as reliable as Treasurys. On October 10th it touched $4.80. It was outperforming Wall Street, the purveyor of the poisoned products. Citigroup would trade at $1, down from $94.
It rallied to $7.85 by next June and, after rallying with gold and oil got back to $10 in April 2011. Within months a Commodity Triple Waterfall Crash began. That index had peaked in July 2008 at 472. It plunged to 202 in February 2008, when the second leg began. It bottomed and rallied to 368 in 2011 and then the final, sickening leg smashed nearly all remaining faith in stuff: in February 2016 it bottomed at a pitiful 160. It’s back to 190.
We were back up above the offering price as of July 4, 2016 – NAV was 10.1724.
Thanks to the fact that Angela and I, with the assistance of Jon Borchardt of BMO Asset Management could rebalance to take advantage of changes in commodity directions, we’re back to above offering price—on July 4, 2016 our NAV was 10.1724.
According to Bloomberg, on July 4, 2016, the Fund’s YTD performance1 was 35.69%.
As of August 5, it is up 47.92% YTD and NAV is 10.8053.
We have been managing like Bad News Bulls to the very last day we are allowed to manage the Fund.
Fear not, we are latent optimists, given a sustained set of excuses.
Thank you for your support.
1. Actual Fund performance is reported by the Fund on the BMO Capital Markets Structured Products website:
https://www.bmocm.com/investorsolutions/closed-end-funds/#type=Closed-End Funds&tab=Past Issues
2. Links to Bloomberg for Indicative performance are also provided on this site.