A Successful Year for Investment Portfolio Management

This year has been a very challenging year for investors. Major market equity and bond indices have struggled to generate positive returns, interest rates are at all-time lows and uncertainty abounds. Many previously celebrated hedge funds have been battered and even Warren Buffet’s Berkshire Hathaway (BRK/A US) shares have lost 10.9% (as of November 30th, 2015) since the start of the year.

Thankfully, here at Baltikums Bank, our client portfolio management team has managed to generate exceptional returns that once again reflect the merits of our independent, decisive and goal-orientated asset management philosophy. Moreover, our investment performance this year is also a credit to our private bankers and - most importantly - our clients’ commitment to long-term, strategic thinking. This support has allowed us the freedom to purchase underpriced assets at attractive valuations and reap their rewards in the future.

 Our performance also speaks to the fact that volatility and risk are not one and the same thing. Surely, in the short term they very much resemble each other - but volatility can be very beneficial to the investment returns of investors with a long term time horizon. In an environment where everyone is still conditioned to fear and avoid short term volatility at all cost, we have focused on long term value and growth. This strategy has been very rewarding, and we will continue to seek out such opportunities to protect and grow our clients’ hard-earned money for years to come.

Thank you for your continued trust and support!

Pauls Miklaševičs
Director of Asset Management