1Q19: +20.96%

“All truths are easy to understand once they are discovered” - Galileo Galilei

As discussed in the previous quarterly newsletter, I expected the eventual recovery of the Chinese stocks once the US-China trade war concerns settle, I just didn’t expect it to be so soon. We recovered some grounds in the first quarter of 2019 and another 12% in April.

The controllers of those Chinese companies are realizing that a recovery of their stock prices is coming and are attempting to take private the companies at bargain prices. Actually, two of our positions have offers to go private by the controllers - HPJ and SORL. We should take these declarations with a grain of salt as Chinese companies are notorious in making such releases and not following through as it is well explained in this article.