Karsan Value Funds (KVF) is a value-oriented fund, as described here. Due to securities regulations, the fund is not open to the public at this time. Should that change in the future, there will be an announcement on this site.

For the fourth quarter ended December 31st, 2019, KVF gained $1.18 per share, increasing the value of each share to $27.57. This is a good result on an absolute basis. On a relative basis, this 4% pre-tax return (after subtracting currency gains of $0.27 in the period) under-performed the 8% and 10% returns of the S&P 500 Russell 2000 indices respectively, and outperformed the 2% return of the S&P/TSX index over the same period.

During bull markets, one can expect KVF's ragtag portfolio of unappreciated misfits to under-perform, as was the case this quarter. The expectation is that during bear markets, such a portfolio will outperform. We'll see if this continues to be the case, should there ever be another one!

Contributing to this quarter's gains were strong price movements in the shares of Petmed Express, Asta Funding and Northern Bear. As a result of sales of these securities, KVF's cash position has increased somewhat from last quarter's extremely low levels. Unlike in US large caps, among small-caps and international issues there remains value to be found, in my opinion.

KVF's income statement and balance sheet are included below (click to enlarge). Note that securities are marked to market value, and amounts are in thousands of $CAD:

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