Element ONE


Issuer: ELEMENT ONE LTD
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

The US market in June showed the best month since February 2019. The S&P500 Index has grown more than 6 percent.

One of the reasons for the rally is a monetary policy easing. The Fed at its meeting on June 19 left the key rate at the current level and hinted at one or even two reductions of the rate in this year.

The day before the Fed meeting, the ECB President Mario Draghi made it clear to markets that the rate cut was one of the tools to stimulate the economy and he could use it.

On June 21 and 27, the Federal Reserve published the results of stress tests of banks and financial institutions, which was conducted in two stages. According to the results of testing, all the largest banks have a sufficient level of capital, allowing them to function in the event of a hypothetical recession. This was another positive sign for stock markets.

Element ONE fund added about 6% in its capitalization for the month mainly due to long positions in stocks.

On June 19, we sold Brookfield Renewable Partners L.P. (NYSE: BEP), receiving a yield of 6.4% in 27 days, profit taking was associated with a possible correction after paying dividends. Protective instruments in the portfolio reduced volatility, but slightly lagged behind the index.

Now we are considering the purchase of a stock of VMware (NYSE: VMW), traded by multipliers below the sector. The company offers unique cloud solutions. In addition, we plan to open a short position in the overvalued, in our opinion, Interactive Brokers company.
 

Mining.VG


Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS

In June 2019, bitcoin continued to grow in price - by the end of the month BTC added almost 26% of the price on June 1, closing on June 30 at a mark in the region of 10,700 US dollars. Within the month, the bulls could not overcome the important mark of $14,000 although all the prerequisites for this existed several times came up close to it. Positive news background and important events in June contributed to the continuation of the uptrend. In the middle of the month, Facebook finally announced its Libra cryptocurrency, which gave a powerful signal to the entire market. Even despite the presence of claims from state regulators to Facebook in connection with the specified announcement and correction at the end of the month, the market continues to maintain an optimistic attitude.

We believe that the current correction is short-term in nature, reflecting the rules of the wave theory, and is an omen of the continuation of further growth of the cryptocurrency market.

In the event of the absence of extremely negative events, the price of Bitcoin will most likely test resistance around $14,000 during July-early August and, if it breaks through successfully above the aforementioned mark, it can move to $17500-18000 in the short term. US in the short term.

Mining.VG fund in June 2019 compared with the previous few months showed a slightly worse trend - + 0.02%, taking into account the accrued coupon (-0.68% at book value, in which coupons are reflected in the debt section). This is primarily due to the transition to an advance settlement system for electricity and, as a result, a significant one-time payment in June, which affected the book value of assets. However, the advance payment system will make it possible to slightly reduce the cost of electricity, which in the future should have a positive effect on the fund's profitability.

It is important to note that in the second quarter of 2019, the Fund received income in the form of remuneration for servicing blockchain networks in the amount of about 34 thousand euros, which is 2.7 times more than the revenue for similar activities in the first quarter (about 14 thousand euros). According to the results of the 2nd quarter, the fund's clients received coupons, the size of which was also on average 3 times higher than in the 1st quarter of 2019.
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