We’re up just shy of 17% this year while the Barclays CTA Index is up 0.94%

December 4, 2009

The Pangea strategy recorded another positive month in November. The fund was up 6.21% (net of expenses and commissions but before management and performance fees) as it was positioned opportunistically across assets throughout the month.

The fund went into cash for the last week of November, due to our concerns that the markets could be erratic during the Thanksgiving holidays, and avoided the Dubai panic.

Equities continued their bull run for most of the month, with a temporary set back caused by the Dubai debt restructuring, but the S&P500 still managed to end the month up 5.9%. The US Dollar continued its decline and was down 2%, while the 10-year Treasury Note was up 2.2%. Gold was the star performer rising 13% due to continued concerns regarding government spending around the globe. Oil was range bound most of the month and ended down less than half a percent.

Pangea expects that the market will begin to see some breakdown of the “risk” trade, mentioned in our October performance review letter, and instead begin to focus on the fundamentals of individual markets.

Said differently, the price movements of stocks, commodities and foreign currencies might not move in a lockstep manner as it has over the past 8 months. We’ll continue to monitor this development and hope to take advantage of this opportunistically.

As usual, we appreciate your trust and partnership. Please call me with any questions or comments.

-Larry
lgmcdonald@yahoo.com