The fund underperformed the Index during March. Sectors that performed well for the Fund over the last year, such as Semiconductors and Cleantech, have struggled recently as more value-orientated sectors have outperformed. These sectors, including Banks and Real Estate, underperformed during COVID-19 but are now recovering as Israel emerges from the effects of the pandemic.
This sector rotation was coupled with poor performance from some of the IPOs that the Fund participated in recently, including Human Xtensions (Robotic surgery), Axillion (Mobility AI), and Massivit (3D printing). At such times we remind ourselves, and our investors, that we are long-term investors seeking companies with long-term growth prospects, and that such effects are only short-term in nature.