Welcome

LETTER FROM THE PRESIDENT

The financial crisis from which we are still recovering has taught investors, old and new, the timeless lesson that investing is risky. That is, there is the potential for significant fluctuations which could result in capital loss due to many factors ranging from economic to political. After the terrible losses in 2008, both the bond and equity markets made remarkable comebacks in 2009 only to falter again in early 2010 due to sovereign debt and central banking worries. It is as difficult today as it was in 2007 or twenty years ago to predict where the future lies. As investors, we at ELEMENT are constantly navigating the changing financial landscape in order to achieve investment results that are stable, non-correlated to the volatile markets providing an appropriate foundation for individual investors. 

Over the past year ELEMENT MULTI-STRATEGY FUND LTD returned 3.23% while keeping the fund’s monthly volatility below 1.29%. These returns and low volatility reflect our philosophy that our clients’ capital preservation is our first priority. The strength of these returns is due to our commitment to choosing investments that meet a strict set of conditions that focus on risk, volatility, diversification, low correlation to any major asset classes or indices, and ultimately total return potential.  

With respect to our investments in external hedge fund managers we remain committed to our due diligence requirements. All the managers we are invested in reflect our philosophy of navigating through these changing times and being as adaptive as possible. ELEMENT has made some changes to the managers the fund is invested in over the past year, removing investments that were underperforming and adding two funds that reflect our core investment values and have a proven track record of performance.  We are similarly pleased with the proprietary investments we have made. ELEMENT was able to take advantage of opportunities within the equity and fixed income markets over the past year. Particularly successful have been our investments in Latin American fixed income, an expertise we pride ourselves on given our ties to the region. 

As always, our goal is to have our portfolio be entirely reflective of our investment philosophy at all times and extend transparency to our investors. We believe so strongly in our investment philosophy that we “eat our own cooking” and the managers of ELEMENT CAPITAL ADVISORS LTD. are also the primary investors in ELEMENT MULTI-STRATEGY FUND LTD.  At ELEMENT we make sure that our interests are completely aligned with our investors. 

We look forward to working together in 2013 and beyond to build a solid investment relationship rooted in transparency and stable investment results.

Francisco D’Agostino      

President & Managing Director