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April performance of Element ONE

Element ONE 
Issuer: ELEMENT ONE LTD  
ISIN Number: VGG299771086 
IssueDescription: USD CL B SHS 
ISO CFI: CICXXX

Element ONE investment fund performed +5,14% during April 2021

  • Share price  — $1 822,63.
  • Hedging positions and value-stocks helped to increase the fund’s net assets.
  • We look forward to closing several SPAC deals from our portfolio.

Top 5 performing companies from our portfolio:

  1. Cinemark (Nyse: CNK)
  2. Immunome (Nasdaq: IMNM)
  3. Moderna (Nasdaq: MRNA)
  4. D.H. Horton (Nyse: DHI)
  5. Republic Services (Nyse: RSG)

At the end of April 2021, the publicly traded share of Datto (Nyse: MSP) closed at 1% above the entry price.

In the independent rating of investment analysts — invest-idei.ru, Raison Asset Management is ranked 3rd out of more than 50 companies.

S&P 500

В апреле индекс SP500 вырос на 5,22% — с 3967,50 до 4174,50, в очередной раз пробив свой исторический максимум и достигнув в пике значения 4211,00.

In April, the S&P 500 index appreciated by 5,22%, which helped it to reach an all-time high of $4211.

CURRENCIES

US inflation expectations remain high despite soothing rhetoric from Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen.

Consumers are expecting 3.4% annual inflation in the US, the highest since 2013, according to a study by the Center for Microeconomic Data of the Federal Reserve Bank of New York.

Consumer confidence in 49 of the 65 countries consumer confidence has increased during the first quarter of 2021, according to The Conference Boat.

Dollar index USD (DXY) has decreased by 2,57% during April.

In March, the American currency strengthened against the Russian ruble by 0,70%. The exchange rate at the end of the month was 76,178 ₽/$.

CRISIS AND MEASURES OF SUPPORT

USA

Biden’s Tax initiative: 

  • Tax increase for individuals whose income exceeds $ 400 thousand per year, up to 39%.
  • Reform of the corporate tax system.
  • Closure of all offshore loopholes for companies and individuals.

FED chairman — Jerom Pawell 

  • The Fed will not advise Congress on fiscal policy.
  • The Fed is unlikely to raise rates by the end of 2022, but it mostly depends on the inflation rate dynamics.
  • The QE slowdown will almost certainly come before interest rates rise.
  • FED long-term target inflation rate is slightly higher than 2%

John Williams (FED)

  • US GDP growth in 2021 may exceed 7% for the first time since 1984 amid recovery from the pandemic. 

Russian Federation

Rusian Central Bank chairman — E. Nabiulina

  • The Central Bank of the Russian Federation admits that the key rate may remain at 5% until the end of 2021.
  • The peak of annual inflation in the Russian Federation has not passed; it has reached a stagnation period and will remain at this level until the end of the 2nd quarter.
  • The economy of the Russian Federation can reach the pre-pandemic levels already in the 2nd half of the year.
  • The delay in raising the Central Bank rate could lead to a tough monetary policy in the future.
  • The Central Bank sees some signs of overheating in the mortgage market and a decline in the quality of loans.
  • It is necessary to introduce regulation of floating rates for loans.

CENTRAL BANK RATED

  • FED: 0,25% (prev. 0–0,25%)
  • ECB: 0% (prev. 0–0%)
  • CBRF: 5,00% (prev. 4,50%)

UNEMPLOYMENT

  • USA: 6,0% (prev. 6,2%)
  • Russia: 5,4% (prev. 5,7%)
  • Eurozone: 8,1% (prev. 8,3%)
  • China: 5,3% (prev. 5,5%)

GOLD

In April, the price of gold futures (GC) increased by3.43% to $ 1,767.7 at the end of the month.

OIL

After the March correction, oil has performed positive dynamics in a price change. Futures on the WTI mark in April hiked by6.88%, closing the month at a price of $ 63.58 / bbl.

OPEC monthly forecast

  • The forecast for global oil demand in 2021 has been improved to 96.5 million barrels p/day.
  • World oil production in March increased by 1.23 million barrels per day, up to 93.23 million barrels.
  • The forecast for oil and condensate production in the Russian Federation in 2021 has been worsened down to 10.6 million barrels p/day.