While most Asia including Japan equity funds posted negative numbers for August, the Ferrell Asia fund held steady at 0.05%, leaving it up a very respectable 14.61% year-to-date.
The fund has taken a defensive position since the second quarter of the year, with a high level of cash. The portfolio’s performance was enhanced by being in the right currencies, thereby profiting from currency appreciation. As for the fund’s holdings, they were kept fairly static, explains Ferrell Asset Management’s David Lee.
Lee remains pessimistic in view of the limited options available to policy makers facing debt and fiscal problems.