The Fund was up 3.47% for the month of January versus the S&P 500 up 1.77%. As a reminder these are preliminary results and Fund Associates provides the official results.

As usual we are highly liquid and can change our exposure rapidly.  At the moment we have large positions in Triumph Group and Occidental Petroleum. I’ll update the position page on Friday.

Top winners for the month were Abbott Laboratories, Wynn Resorts, Medtronic, Paycom, Invalon Hldgs, Instructure Inc, and Triumph Group.  Top losers were shorting SVXY calls, Occidental Petroleum, Astronics, Netflix, and GLD.  GLD was particularly disappointing as we were right but impatient. I think GLD is going a lot higher but timing is everything and it has had a nice run from what might be a cyclical bottom.

I’m hesitant to pretend I know anything about what the markets will do in the near term. Anyone that tells you otherwise and believes it, is fooling themselves.  Don’t let them fool you.  We are headed into uncharted waters .  Our strategy of following insiders has served us well and kept us from blindly following the herd.  I don’t recall EVER a period where there was so little appetite for stocks by the people that know the most about their prospects.  Insiders are on vacation or maybe boycott is the better word.

I have a lot of anxieties in general about the market, its valuation, rising rates, etc and if you read my blog, you already know that. My biggest anxiety is one of populism contagion and the retreat from globalization. The chances of an European Union breakup may rise exponentially this spring as French elections in April may jar the economic order. We are short Italian and French government bond futures and major French banks.  We are anxious to exploit this potential turn of events. To the think the global markets would be immune from this is downright laughable. This seems like a very asynchronous bet as even if FREXIT doesn’t happen, rising rates and a strengthening US dollar might do the work for us.  One nice thing about Sax Angle Partners is that we are a small and nimble fund. We may be entirely in cash or short the market at any time with little effort.

Thanks again for your continued support.  You will be glad you did.

Sincerely,

Harvey Sax

harvey@saxangle.com

435-658-1934