The turmoil in the banking sector during the first quarter of the year caused a headache for some investors, but it presented opportunities for others.
Christian Olesen, CFA, the fund manager of the Olesen Value Fund, was one investor taking advantage of the situation.
The value fund returned -6.6% in March and is down 0.44% year-to-date compared to a 7% return for the MSCI World index. Its portfolio exposure at the end of the month was 72% long, with 23% of assets allocated to European equities, with the remainder in North America.
In his first quarter letter to investors, Olesen explains that the potential for a bank run is an inherent weakness of the fractional reserve banking model, and it's far more likely...
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