April was a good month for the PVG Loss Averse Equity Income strategy, up about 1%. We continue to have a very defensive stance toward the markets, especially the bond market on a global basis. It is estimated that 25% of the sovereign debt in Europe has a negative yield. Frankly, this just does not happen, who would buy an investment knowing they are going to have a negative return? We are in a bond market bubble, which has also impacted many different asset classes. One of the sectors we were a little early taking advantage of in the decline last year is the Business Development Companies (BDC). This sector has been impacted by the decline in oil prices, but it is more perception than reality as most BDCs have limited exposure to the energy sector.
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PVG – Equity Income Monthly Update (May 2015)