Insch Newsletter - September 2017

September proved to be quite a lively month. Gold opened September at $1321, and during the first week of September saw a continuation of the bull run that was started in the second week of July. Gold reached a high of $1357 on the 8th September. Apparently, all of this was due to the sabre rat­tling between North Korea and Trump. However, after a couple of weeks, it lost steam and the mar­kets finally began to discount anything that was “war/North Korea” related. More to the point, gold was not able to hold its ground above $1350 which was seen by many as an important technical price lev­el. The combined effects finally pressured gold into a downtrend for the rest of September. The second half of September saw the two-day FOMC meeting during which the Fed announced its unwinding of its $4.5 trillion balance sheet (the "balance sheet normalization program” as they called it). As expected. the Fed did not change its interest rates and this drove gold down even more. Insch Kintore started September with net long 14 risk units as a continuation from August, and by the 8th September, it started to cut back on its long position. It reached a net short 14 risk units by the 18th September and held it for only 5 days before North Korea "declared war" on the USA. (This is not their first declaration of war on the US. In June 2014, Kim Jong-Un declared war on the US over a Hollywood movie called The Interview.) Insch Kintore ended September with a net short 3 risk units. As mentioned, September was quite a lively month in that Insch Kintore reached both the maximum long and nearly maximum short exposure during the month. This is, again, a demonstration of the bi-directional nature of Insch Kintore and its ability to track both the up and down movements of gold. XAU/USD, XAU/CHF and XAU/GBP were positive performance contributors while the others were negative contributors. Gold ended September at $1280 which translate to a decline of -3.10% for the month. On the other hand, Insch Kintore finished September with a +2.29% gross of fees, and the UniCredit Bank AG / Insch Kintore (Bidirectional Gold) AMC – ISIN: DE000HVB15X4  (Frankfurt Stock Exchange) ended up with +0.94% net of all fees. Below is the daily net exposure chart for September 2017.

Quick links: - AMC linked to Insch Kintore (Bidirectional Gold) Strategy - Insch Kintore Factsheet - Insch Kintore Risk Report - Insch Kintillo Two Pager

Insch Kintillo ended September with -0.80% gross of fees and had positive performance contribution from EUR/CAD, EUR/USD, GBP/CHF, GBP/JPY, and GBP/USD. At the end of September, the portfo­lio was short AUD, JPY, long EUR, USD and flat CAD, CHF, GBP. We revisited of our previous papers titled “The Good, The Bad, and The Ugly: The Sequel” – this time, we took HSBC’s Hedge Weekly report as the data source, looked at the 2 most appropriate categories for Insch Kintore, and ranked each strategy by the usual performance criteria to come up with a final Overall Ranking. Insch Kintore does not appear at the top of every ranking criterion. However, it does appear on the various rankings high enough, often enough, to be in the top 10 Overall Ranking. The report also re­ports AUM, and it is quite shocking to see that the largest and the biggest managers are not as liquid as one might think. A whopping 80% offer appalling liquidity of more than a month. This represents nearly $134B! For further information and requests, please contact us. Best regards, Rivaldi Kwan Associate Director Insch Capital Management SA                                          c/o Elvefin SA Via G. Luvini 4                        CH 6900 Lugano                    Switzerland E-mail: rivaldi@inschinvest.com Phone: +41 (0) 91 921 0168 Fax:      +41 (0) 91 921 4078 Website: www.inschinvest.com          IVA/VAT N° CHE-422.389.748    Click here to be removed for our mailing list.

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