The Castlewood Select Opportunity Fund posted a 6.5 per cent return net of fees and expenses for the second-quarter.
According to Mark Wittenstei (pictured), Managing Partner of the Castlewood Select Funds, this puts Castlewood up 10.3 per cent through the first-half of 2017 and caps a 12-month return of 16.8 per cent for the Macro Fund.
“By some measures, investors rarely had an easier time making money than they did in the first-half of 2017. Markets put together several extended strings of ‘up days’ and there were almost no scary bouts of downside volatility to keep risk-takers honest,” says Wittenstein.
Wittenstein sounded a cautious tone, however, in his outlook for the balance of the year.
“We have developing concerns that investors are disregarding some warning signals – like equity valuations at the upper end of their historical range, shifting Fed policy, narrowing market breadth and unbelievably high levels of complacency to name but a few,” he says. “To be clear, we are not calling a market top, nor are we positioning Castlewood net-short, but we are taking even more care to define downside risk in the portfolio.”
