For the month, the Fund returned -8.03% vs the Small Industrials -8.44%. The biggest positive contributors in the Fund were 4D Medical, SDI Ltd, and Clover Corp; whilst the largest detractors included Vysarn, Chrysos, and Aeris Resources.
During the month company positions were analysed for the correlation to higher oil prices, oil supply scarcity, higher inflation and lower economic growth. Under these scenarios the largest risk to the portfolio is a systemic liquidity risk rather than single stock earnings impacts. Under a lower growth scenario, the portfolio’s exposure to healthcare ensures the resilience of the fund despite higher energy prices. We continue to reduce exposure in the less liquid part of the portfolio and focus on idiosyncratic factors that will drive earnings for portfolio companies over the medium-term.
Read the full report NorthStar March Monthly Report