In 2018, S&P 500, Hang Seng Index & HS300 were down 6.2%, 13.6% & 25.31% respectively. The Fed has raised interest rates four times throughout the year, while the trade war woes spread out.
In 2018, Midas International Group (MIG) ‘s equity fund bucked the trend with 20.4% growth while the Group’s after-tax NAV was up 16.3%. And by the end of December 31st 2018, MIG accumulated 151.0% growth in equity fund, which in turn beat S&P500 by 125.5 ppts. We maintained 23.7% CAGR in equity fund during a difficult year.
As for our VC projects, the first large-scale mass manufacturing run of ChemiSense’s Air Quality Monitors was completed as of November 2018. MIG has injected Luvo’s shareholdings into the Group’s finally through a share exchange deal in 2019 at arms’ length.
U.S. stocks finished 2018 with their worst performance in a decade, as fears over the U.S. Federal Reserve's tightening policy and trade war continues.
The Dow-Jones, NASDAQ and S&P 500 indices have slid 5.6%, 3.9% and 6.2% in 2018 respectively. However, the drops of US indices were moderate in absolute value, comparing to others. As we continue to execute our strategy to focus only on companies with the ability to grow with potential headwinds. We downgraded Midas’ Global Market Risk Rating to “Above Average” to reflect resilience of flagship indices.