Argo today announces its final results for the year ended 31 December 2018.
The Company will today make available its report and accounts for the year ended 31 December 2018 on the Company's website www.argogrouplimited.com. These will be sent by post to shareholders in the next 2 weeks.
Key highlights for the twelve months ended 31 December 2018
- Revenues US$4.6 million (2017: US$10.3 million)
- Operating loss US$0.8 million (2017: operating profit US$2.0 million)
- Loss before tax US$1.2 million (2017: profit of US$4.7 million)
- Net assets US$23.3 million (2017: US$24.7 million)
Commenting on the results and outlook, Kyriakos Rialas, Chief Executive of Argo said: "As it turned out the second half of 2018 was a year to forget for most hedge funds as the best asset class proved to be cash. Argo was not immune from the general correction in market prices as they particularly affected emerging markets. The firm managed the risks not only by keeping a sizeable portion of the portfolio in cash but through our macro overlay we took short bets on market risk that contributed positively to performance along our USD positioning against emerging market currencies. We lost money on our distressed debt and USD sovereign debt but at much more modest level than the specific subindex of EMBI. The end result was a manageable drop of 5.65% gross for the year in our main fund, The Argo Fund, made up of 2.1% in fees and expenses and the rest in asset performance. January 2019 however started strongly with The Argo Fund up about 2.7%. The objective of the Group remains the increase of assets under management in The Argo Fund to well over US$100 million and we have been successful in the latter part of 2018 to reach around US$80 million. Despite the drop in the distressed credit fund following a liquidity event that allowed some redemptions we are looking to grow this fund and market it more actively to a wider group of investors. We have an attractive pipeline of transactions that could be interesting to long-term investors looking for uncorrelated returns. At the same time cost control is an ongoing process by streamlining expenses by closing holding companies which are no longer needed in the remaining illiquid investments."