Kernow Down Slightly In March As Short Book Returns 18%

Kernow Asset Management’s commentary for the month ended March 31, 2026.

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In March, we held losses to 0.7% as the USA had its Suez moment.

The world order has changed. Oil doubled, and markets turned hostile. The war is going so badly that they are considering releasing the rest of the Epstein files to create a distraction.

We put survival first. Always have. Stress tends to expose preparation. This month, it showed up on cue, right when it mattered most to our fellow investors.

Gloom Picked Up the Tab

That focus first on safety, then on return, has worked out well. The short book produced a stonking 18% return on invested capital, while the UK market suffered a 7% decline. The mid-cap index fared even worse, falling 10%.

Frankly, things are never as bad or as good as they seem. Once the market pays you for caution, it often starts paying you for courage. We have passed the fear apex and are accelerating. We have been buying selectively. As always.

Indiscriminate buying, on the other hand, is a dirty habit best left to index huggers. For example, do you really want to own all the airline shares? It’s not that airlines never make money. It’s that whenever they do, they immediately invite enough competition to make sure they don’t keep it.