Kurdistan Investment Company - September results
The NAV fell 4.8 % during September, fully owing to the souring SwedishKrona, as in USD and IQD terms our company's value showa healthy 5.0 % increase. (The SEK recorded an appreciation of almost 10% against the USD and an 6 % increase against the CAD and the GBP.) This compares to a decline in the MSCI Frontier Market Index of 2.7 % in SEK terms and an increase of 7.4% in USD terms. The currency markets have been fairly volatile lately and impacts our monthly performance heavily,we expect no change in the upcoming months.
As in earlier months, our holdings show significant spread in individual performance. Gulf Keystone climbed 25 % related to its possible move from London Stock Exchange’s junior to main market while Shamaran Petroleum rose 22 % as it seeks capital for it work programs. Sterling Energy, in which we have a smaller position, tumbled 41 % when gas was followed with water in a drill stem test. Whilethese news were disapponting,futher drilling to deeper levels will show if the wells have any remaining potential.
During the month we trimmed our position in WesternZagros, while we added some oil ETFs to our portfolio. We continue implementingthe mandate to concentrate our portfolio in number of holdings to between five and than holdings in total, presently favouring the lower end of the range.
As of October 11 and for a full week, our whole management group will be available in the Iraqi part of Kurdistan with an agenda involving giving investment presentations, researching for new business opportunities, reviewing existing ones as well as relating to various investor groups. Let us know should you or your business colleagues wish to meet up with us in the period.
For further information, please contact Johannes Liss
Swedish Representative Office
Idrottsgatan 4
222 29 Lund,
Sweden
Phone: 46 46 12 26 17
Phone: 46 73 65 22 824
Web www.godvigcapital.com
E-mail info@godvigcapital.com
johannes.liss@godvigcapital.com
About Godvig Capital: Godvig Capital is an independent fund manager. Together with our advisory and analytical operations we form the Godvig Group. We manage funds that tend to be unique in their characteristics, and that have a tendency to be at the frontier of the investment horizon – regionally as well as intellectually. Further, we advise on additional investment mandates. Our success is dependent on our investors' success.
About Kurdistan Investment Company: Kurdistan Investment Company is the world’s only investment company available with a focus on the Kurdish region.
The investment objective of the Company is to achieve the highest possible long-term capital growth, with lowest possible risk, to our investors.
Kurdistan Investment Company tries to capitalize on the strong investment potential seen in mainly Iraqi Kurdistan but also as investment opportunities arise, other areas in Kurdistan. The Company primarily invests into large-cap Kurdish and Kurdish-dependant companies, private equity as well as listed companies on the stock exchanges in Iraq, its surrounding countries and internationally. The stock exchange in Iraqi Kurdistan is expected to become operational in 2011. Other securities that the Company might invest into are regional bonds, Pre-IPOs and commodities.
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