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 first quarter ended March 31st, 2012, KVF earned $0.80 per share, increasing the value of each share to $13.20. To a large extent, the fund benefited this quarter from investments that were made toward the end of last year as the market plunged.
Contributing to the gains this quarter were positive price movements in the shares of LS Starret, OfficeMax, InfoSonics, and Alpha Pro Tech (which are all described in further detail here, here, here and here, respectively). As a result, the fund no longer holds positions in these companies.
It was a good quarter for the market in general, with US indices posting gains on the order of 10%. Canadian indices were only up in the low single-digits, however. Some euphoria appears to have returned to US markets, as seen by several sky-high IPO valuations and low market volatility. This suggests caution is likely in order, as rising prices reduce margins of safety and increase downside risk.
Once again, strength in the Canadian dollar relative to the US dollar hurt returns; had the CAD/USD exchange rate finished the quarter at the same rate at which it started the quarter, earnings per share would have been another 19 cents higher. Currency movements are likely to continue to significantly impact short-term results, but their long-term impact is expected to be low.
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 $CAD: