Market Update

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The market environment has turned positive (since Sep 17 2010). Presently Hypatia investment position is 100% cash. We will start now looking for stocks which offer an attractive risk/return ratio and build progressively our equities position. If the market keeps rising we will increase slowly our market exposure but if the market turns again negative we will still have a comfortable cash position and will come back to a more defensive posture. As you understand, we don’t try to forecast the next market move, this is an important feature of the Hypatia investment methodology.
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End of Quarter Update

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The market environment is negative holding us in a comfortable investment position of 40% equities – 60% cash. At this stage the risk/return ratio for equity is less unattractive but no new position will be taken until the market environment becomes favorable again.

Market Update

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As anticipated the market environment has now turned negative (since May 7 2010). Presently Hypatia investment position is 10% cash – 90% equities. No new position will be established until the market environment become favorable again.
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WDC (Australia - ASX) having found some support at this level

End of Quarter Update

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The market environment is still favorable with Hypatia holding a comfortable investment position of 30% equities – 70% cash reflecting the fact that finding good candidates with investment merit is becoming tenuous. xxx

GNC (Australia - ASX) appears having found support

Market Update:

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Despite the fact that the market environment is still positive, we are now 95% in cash. As previously indicated it was becoming difficult to find real value in this market. Once the present correction is over we should be able to find candidates with an attractive risk/return ratio.xxx

CTX (Australia - ASX) in an accumulation phase

Market Update:

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Our model is now 20% equities – 80% cash. The market environment is still positive but it is becoming difficult to find real value in this market. At this point we are very comfortable with this asset allocation because the risk/return ratio for equities is not anymore attractive.

End of Quarter update

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Hypatia investments model is still 95% invested in shares. If the market starts to deteriorate significantly, the model will switch to 100% cash.

Hypatia Investments performance report can be obtain upon request at hypatiafinance@optusnet.com .au
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