US Financial Small Cap +48.08%

For 2016 this underlying fund was the best performer in the Courant SICAV-SIF portfolio. The manager, based in Florida, has invested exclusively in financial sector equities for more than 18 years.

The portfolio manager comments:

"Our 2016 performance ended up much better than how it started. As we discussed in our September letter, we knew our stocks had low valuations and our sector was out of favor, but we were pleasantly surprised that the election was the catalyst to realize the compelling values. I want to thank you for having the fortitude to stay invested in the Fund through the volatility of late 2015 and early 2016."

Remarkably the net exposure of the Fund before the Trump rally in November was 54%. Nevertheless the fund more than captured the financial sector's 25% jump.

Even with US financials finishing 2016 up 21.6%, the manager was able to contribute an outstanding 26.5% outperformance, while maintaining an average net exposure during the year of less than 50%. As of January 31, 2017 the fund was near neutral with an exposure of 102.58% long and 93.12% short.


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