MAXIN GLOBAL FUND - USD is a Long / Short Directional hedge Fund incorporated in Luxembourg. It started trading on February,22 2022 and replaces MAXIN ADVISORS' MODEL PORTFOLIO which has been trading since January 1st 2014. At MAXIN ADVISORS, we manage FULLY TRANSPARENTLY and publish the transactions on a DAILY basis and the details of the portfolio on a WEEKLY basis.
MAXIN GLOBAL FUND – USD
Transaction Update 5 Dec 2022
As expected, the corporate results of China’s EV makers were better than expected and led to massive rallies I. their stock prices. During the downdraft, we had been accumulating XPENG and NIO, making XPENG our largest position at the end of October 2022. Since its bottom, the stock rallied by 100 %, transforming a sharply loss making position into a 40 % profit making position and NIO rallied by 70 % in the last couple of weeks.
Today, we took more profits on the way up in XPENG, IQIYI and the US listed KWEB and YINN ETFs, taking our long exposure to China down to 40 % of the portfolio. The Chinese indexes are overbought and may be taking a breather in the year-end, something that will enable us to re-instate individual positions ahead of the strong rally we expect in 2023.
Conversely, Western equity markets are finding it difficult to make headways and today was a bad session for US equities, probably confirming that our expected top for the bear market rally has been made. What is extremely interesting is that this is happening at a time where bond yields have reached our 3.5 % target on the US 10 year and where volatility indexes are at levels that usually marked significant equity market tops in the past.
Today, we took advantage ei the weakness in Volatility gauges to increase our exposure by adding more VXX US and VIXL ETF, taking our log exposure to volatility to 9 % of our total portfolio.
Europe is levitating after its strong advances of the past few weeks and it is only a matter of time before we see the European indexes breaking down. Today, we added to our short positions in the EUROSTOXX 50, Italy’s FTSE MIB, Spains’ IBEX futures while re-instating our strategic short positions in luxury good markers LVMH and HERMES INTERNATIONAL in France.
We have also increased our short exposure to German Government bonds, where we see yields at 1.90 % unsustainable. the ECU will hold its monetary policy meeting on December 15th 2022 and we expect their posture ti be more hawkish than expected by the market.
Our portfolio is now long 41 % and Short 98.7 % in equities with the US accounting for 70 % and Europe 30 %
Our short portfolio is more diversified than in the past even if we continue to see the US technology sector as being the weakest point for global equities in 2023.
With our strong performances since the beginning of the year and the launch of MAXIN GLOBAL FUND, our portfolio has been de-risked considerably. We are now neutral in bonds and little exposed to commodities.
As a reminder, we shall be holding our next MARKET WEBINAR on December 15th 2022 and you may register on the link below if you wish to attend.
New Asset Allocation
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