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COLUMBUS, Ohio (April 1, 2004) - Despite sizeable geopolitical and economic uncertainties hovering over the US equity markets, Prospero's investors enjoyed net gains during the first quarter of 4.9, 4.2, and 5.4% in Antenor/Beaumont/Curan, respectively. Meanwhile, the S&P 500 experienced its worst month (a loss of (1.5)% in March) since January, 2003, finishing the quarter with gains of only 1.7%. As illustrated in the table below, Prospero's core equity strategy (Antenor) has appreciated 48.0% net of all fees and expenses during the last twelve months and has produced double-digit annual returns for its investors during the last five years, while the S&P 500 and NASDAQ indexes have declined.
Prospero's long/short Beaumont Fund also performed well during the quarter, with a net return of 4.2%, significantly outperforming the S&P 500 despite substantial hedges against market declines. Furthermore, Prospero's market-neutral Curan Fund, which has no net market exposure, gained 5.4% for the quarter. In summary, we continue to make money for our investors on both the long and short sides of our investment portfolio (long alpha of 3.6% and short alpha of 1.8% through 3/31/04).
Annualized net returns (-3/31/04):
| Antenor | S&P 500 | |
| MTD | (0.3)% | (1.5)% |
| YTD | 4.9% | 1.7% |
| 1-year | 48.0% | 35.0% |
| 3-year | 13.7% | 0.6% |
| 5-year | 11.4% | (1.2)% |
| Inception (1997) | 14.9% | 7.5% |
Given Prospero's consistently strong track record, please consider the following facts when evaluating your current portfolio allocation:
- Prospero has produced positive double-digit net annual returns for its investors during the trailing 1/3/5-year and since inception time periods;
- Every $1 million invested in Prospero's core equity fund 5 years ago placed an investor more than $771,000 ahead of the S&P's return, itself a level exceeding the performance of many fund managers;
- Every $1 million invested in Prospero's core equity fund 3 years ago netted a $468,000 profit, while the S&P 500 was flat, producing a net difference of 45% between Prospero's cumulative return and the market during the last 36 months!
If you would like to discuss Prospero in more depth or further explore our investment process, please call us toll-free at 866.377.7677. In the interim, we will be working diligently to produce consistent gains during the remainder of 2004 and beyond.
Prospero Capital Management is an investment advisory company delivering superior financial results and service to clients through detailed fundamental research and investment insight. Contact Prospero at 866.377.7677 or invest@prosperofunds.com for more information.