2010-07-06

We stated "Sell in May and Go Away" as a guideline for the coming month in the latest monthly report. It proved to be a great guideline: Palisades Global Water index was down 0,91%, MSCI World lost 3.26% while WilderHill New Energy Index was the worst performer, once again, by dropping 3.48% in June. Due to the defensive strategy of the fund we managed to post a gain of 1.14%. As we have stated before we see attractive valuations in the renewable energy segment and have therefore increased our position in the segment during the month. However, we are still underweighted renewable energy mostly because of the high volatility in the market.

During the month we saw high activity in the sector: the British financial services group Barclays announced a cash offer with a 40% premium for the Swedish carbon trader Tricorona; the U.S. electric car manufacturer Tesla Motors became the first auto company to be listed on the New York Stock Exchange since Ford Motor Company in 1956 - the stock soared 40% in the first day of trading; the Korean solar components maker Woongjin Energy - the company has a joint venture with SunPower, the second-biggest U.S. manufacturer of solar-power modules - was listed in Seoul on the month’s last day. The IPO was oversubscribed 162 times sending the shares up 45% in the first day of trading.

Read the monthly report

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