Element Global Value

The Element Global Value Portfolio has the mandate to go anywhere in pursuit of attractive investment opportunities, using a
bottom-up investment approach. Being equity focused, the portfolio has at least 70% of its assets invested in international equity
markets. The portfolio uses as benchmark the MSCI World (Local) but it does not seek to mimic or track this index in any way.
1
st
Quarter 2014
Net Asset Value (NAV) : 125.38
Launch date: 14-January-2011
Portfolio Manager: Filipe Alves da Silva, CFA, CAIA



Portfolio Details
Investment Highlights
The portfolio was up 4.08% in a quarter where the global equity benchmark remained practically
unchanged. Everyone was surprised by a Cold War type situation between Russia and Ukraine, as
Putin has definitely reminded the World why Russian equities get a discount to other markets. The
situation is still developing after Russia annexed the Ukrainian region of Crimea, with both the
US and Europe imposing sanctions on Russia.
One of the companies in the portfolio operates in Ukraine and actually has a small part of its
producing facilities in Crimea: AvangardCo is a Ukrainian agro-industrial holding company,
specialized in the production and distribution of shell eggs and egg products. I first purchased
shares in early 2012, and have added to the position several times since, reaching an average price
is $10.70. The price has come down substantially this year from $12 to $9.7, due to the Russia-
Ukraine crisis.
With a production of 7 billion eggs in 2013, AvangardCo ranks as the Worlds second largest egg
producer. This number is up 11% from 2012, and translated into higher revenue and profits, as the
company continues executing its expansion strategy.
When the shares were added to the portfolio they traded at 4 times earnings; this multiple
contracted to the current 3 times earnings. Despite this, the company will start paying a dividend
this year and will eventually be acquired / merged with UkrLandFarming (which owns 77.5% of
AvangardCo and is expected to come public in the future), a definitive value-unlocking catalyst that
Monthly Performance
80
90
100
110
120
130
Jan/11 Jan/12 Dec/12 Dec/13
MSCI World Local
Portfolio
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2011 -1,11% 1,61% -2,05% 3,30% -1,25% -1,72% -1,37% -7,23% -7,20% 8,70% -2,83% -1,18% -12,57%
2012 7,06% 5,19% 1,62% -0,86% -6,98% 2,62% 0,62% 2,67% 1,35% -1,50% 0,97% 0,87% 13,73%
2013 2,90% 0,47% 1,33% 1,51% 1,68% -3,88% 4,46% -0,90% 3,84% 4,64% 2,19% 1,41% 21,15%
2014 -2,14% 3,77% 2,49% 4,08%
Weekly Performance Chart
Element Global Value
has been delayed due to the present situation. I took advantage of the sell-off and increased the
position by 50% to 2.3% of the portfolio.

During the quarter I liquidated the MSCI World ETF position, increased the GM position by 50% to
2.7% and marginally increased the stake in Apple.
A small but noteworthy change to the portfolio was the finalization of the acquisition of Patient
Safety Technology by Stryker Corp. By $2.22/share, a 34% gain from the entry price. Due to the
early-stage nature of this company this position was never significant, thus the hefty appreciation
of the shares has a limited impact on performance.
10,5%
29,8%
0,2%
1,1%
23,1%
12,0%
4,5%
4,3%
5,1%
0,0%
7,0%
2,2%
0% 5% 10% 15% 20% 25% 30% 35%
Financials
Information Technology
Industrials
Energy
Consumer Discretionary
Consumer Staples
Health Care
Materials
Telecommunication Services
Utilities
Other
Cash
62,2%
8,9%
2,6%
5,0%
4,8%
4,7%
4,0%
2,3%
0,8%
0,4%
0,6%
0,0%
0,0%
0,0%
1,7%
2,2%
0% 10% 20% 30% 40% 50% 60% 70%
United States
China
Canada
France
Germany
Spain
Israel
Ukraine
Brazil
United Kingdom
Kazakhstan
Japan
Australia
Switzerland
Others
Cash
Allocation by Country Allocation by Sector
Currency Exposure
Element Global Value
For more information please contact Filipe Alves da Silva directly
or send anemail to element.cap@gmail.com
Contacts
82,7%
1,0%
7,0%
0,8%
3,2%
0,4%
2,3% 2,1%
0%
20%
40%
60%
80%
100%
EUR USD CNY BRL CAD GBP UAH HKD
Max. Long Exposure: 130%
Min. Long Exposure: 70%
Position Sizing (Long): Max Position 10% (at purchase)
Use of Derivatives: May use options or warrants
(Max notional exposure of 20%)
Ability to Short: Max individual position 2.5%
Max gross short exposure 30%

Currency Hedging: Hedged on a best effort basis



Investment Guidelines
This report is based on my portfolio. Reference to specific
securities should not be construed as a recommendation to buy or
sell these securities. You should always conduct the due diligence
yourself.
Disclaimer
E L E M E N T
Largest Positions
Weight
I BM 7,8%
Mi crosoft Corporati on 7,2%
Appl e I nc 7,0%
Fi del i ty Chi na Speci al Si tuati ons 6,4%
Pepsi Co 5,1%
BMW
4,8%
Berkshi re Hathaway
4,8%
Al ternati ve Asset Opportuni ti es 4,5%
Archer Dani el s Mi dl ands 4,1%
Teva Pharmaceuti cal s 4,0%
55,6%
Name
Total TOP 10 Positions
Complete List of Holdings
Element Global Value
Note: Reference to specific securities should not be construed as a recommendation to buy or sell these securities. You should always conduct the due
diligence yourself.
Weight
IBM 7,8%
Microsoft Corporation 7,2%
Apple Inc 7,0%
Fidelity China Special Situations 6,4%
PepsiCo 5,1%
BMW 4,8%
Berkshire Hathaway 4,8%
Alternative Asset Opportunities 4,5%
Archer Daniels Midlands 4,1%
Teva Pharmaceuticals 4,0%
BlackRock 3,6%
AMERCO 3,5%
Lowe's 3,4%
CF Industries 3,0%
General Motors 2,6%
Renault 2,6%
Corning Inc 2,6%
Amadeus IT Holdings 2,5%
Chatham Lodging Trust 2,5%
Societe d'Edition de Canal+ 2,4%
Avangard 2,3%
Telefnica 2,1%
PAX Global Technology 1,9%
OPAP 1,7%
IMAX Corporation 1,1%
MRV Engenharia 0,8%
KazMunaiGas E&P 0,6%
Cninsure 0,6%
Monument Mining 0,5%
Calfrac Well Services 0,5%
Energold Drilling 0,4%
Ted Baker 0,4%
GAP Inc 0,3%
Addvantage Technologies 0,3%
Veris Gold Corp 0,1%
Cash 2,2%
Total 100,0%
Name