May 19, 2024

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Karsan Value Funds: 2021 Q1 Results

Karsan Benefit Funds (KVF) is a price-oriented fund, as explained listed here. Because of to securities rules, the fund is not open to the general public at this time. Should really that alter in the upcoming, there will be an announcement on this web-site.

For the initially quarter finished March 31st, 2020, KVF obtained $4.99 per share, increasing the worth of each share to $35.88. This pre-tax 18{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} quarterly return bested the 6{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}, 8{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and 7{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} returns of the S&P 500, S&P/TSX and Russell 2000 indices, respectively. KVF’s result would have been even greater but for forex losses which lessened returns by $.29 per share in the quarter.

Not a ton went completely wrong for KVF this quarter. On the other hand, quite a few corporations whose shares KVF owned observed price tag spikes that allowed for some swish exits. As a end result, KVF no for a longer period owns shares of Biorem (TSXV:BRM), Resolute Forest (NYSE:RFP), Citigroup (NYSE:C) and Waitr Holdings (NASDAQ:WTRH), among other individuals.

The returns of the previous couple of quarters are not likely to be sustainable. It is substantially tougher to obtain value now than it was just a couple of months ago. KVF’s cash harmony proceeds to increase, as it has been tricky to locate desirable investments as quickly as KVF has been bailing out of investments that are achieving what I estimate to be good benefit. As these types of, I am not nearly as optimistic now as I have been in latest yrs.

Investor/speculator appetites for chance are significant, hence this is a time for prudence.

KVF’s revenue assertion and balance sheet are included down below (click to enlarge). Observe that securities are marked to sector price, and quantities are in countless numbers of $CAD:

About the writer:

Barel Karsan

Charlie Tian, Ph.D., is the founder of GuruFocus. You can now get his e book Invest Like a Guru on Amazon.