Newsletter May 2018

Legends Fund was up 0.35% in May. The number conceals some significant underlying moves. On the one hand, several funds did really well after a long period of subdued returns. Discovery Capital and Brevan Howard booked 10% and 8% gains respectively profiting from the turmoil in Italy. And Andurand Capital and Pershing Square continued their strong recent run with further positive numbers. What tempered the overall performance was our core holding in VR Global, which shed over 4%. Counterintuitively though, we view this as a positive. VR’s losses in Argentina and other emerging markets were actually quite contained given the profits these
positions have yielded over the last few years. And the large moves in these markets will bring dislocations that have been lacking recently. It allows the manager to load up on attractive risk that will drive performance for the quarters to come.

Read the full Performance Update here