In April 2023, the Tycoon Global Growth Fund experienced a modest retracement of 8.5%, following three consecutive months of positive returns. However, since the beginning of the year, the fund has shown impressive performance, with a gain of 12.2%, surpassing the MSCI World index by 9% and the S&P/ASX300 Australia index by 5.2%. The temporary decline in April was primarily driven by major positions in Tesla, Infineon, and Enphase, but it is important to note that these stocks have exhibited strong upward momentum. Such corrections are considered healthy and provide an opportunity for continued growth in the future. With a strategic focus on investing in high-quality, future-oriented companies, we remain confident in the Tycoon Global Growth Fund’s ability to generate consistent and sustainable returns, even within the context of a volatile and uncertain macroeconomic environment.

Global equity markets displayed a modest upward movement, propelled by the resilience demonstrated by major companies amidst a challenging earnings season. This encouraging performance helped alleviate market concerns, resulting in the MSCI World Index closing up 1.6% for the month. The S&P 500 Index also concluded with a gain of 1.5%, while the Nasdaq Technology Index experienced minimal change. Additionally, Australia’s S&P/ASX300 Index recorded a notable rise of 1.9%.

Against a backdrop of persistent inflation and rising interest rates, market expectations for corporate earnings have been tempered in recent quarters. However, this adjustment provides an opportune moment for companies to surpass these revised expectations. With the likelihood of prolonged high interest rates and a potentially challenging macro environment, Wall Street is closely monitoring how companies will navigate these conditions in the upcoming quarters. The preparedness of management to operate within a higher interest rate environment is a key focus.

While investors approached mixed corporate earnings reports cautiously, the sentiment among long and short positions remained balanced, making it challenging to discern a clear trend. It is important to note that some investors harbor concerns regarding the Federal Reserve’s potential misjudgment, which could pose risks of an economic downturn and impact future corporate profitability.