Macro Tsimmis

intelligently hedged investment

SELL India Fund (IFN) and FTSE/Xinhua China ETF (FXI)

Posted by intelledgement on Mon, 05 Nov 07

These are perfectly good investments for the long run, and maybe even for the short run. We own both of these in our big sister Intelledgement Macro Strategy Investment Portfolio, and we mos def ain’t be sellin’ ’em there.

However, for this spec fund, when we bought these guys on a broad Asian pullback in February, we were looking for gains of up to 30% in six months. In August the IFN was up 10% for us and FXI was up 57% and both were running hot…so we held on. Now two-and-a-half months later, they are up 40% and 95% respectively, and thus have exceeded expectations, which indicates they could be running ahead of themselves. Furthermore, with the USA consumer more challenged than ever here, we suspect that the short term risks exceed the benefits. So, we are taking this money off the table…but most likely not for long, as other opportunities beckon, as always!

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