24 Nov The Old, The New, and the Optimist

At Defender Funds we believe that change is the only constant. When we started thinking about a hedge fund in 2017, Uber was still a private company and Bitcoin traded at $2,500. Both appeared already then in our investor presentation and have since become a part of our world.

We are observing the valuation of tech companies at unprecedented multiples, and national governments pumping the economy with massive stimulus and low interest rates.

No wonder that in a market infused with 7trillion dollarsof stimulus, the demand for stocks has dramatically increased, because they are real assets.

A new generation of “Robinhood” traders no longer limit themselves to index funds, as they pay up to build a stock portfolio based on services and technologies they use in their daily lives. They are the future; therefore, it is important to observe the way they operate.

At Defender Funds we have three principles:

• Change is the only constant.
• The market is split betweenthe old economy and the new
• Volatility is our new interest rate.

If the market is an ocean, the waves are the volatility. We harness the power of those waves to collect premiums.

There are many emotions involved in stock trading. People want their normal lives back. The intensity of this is seen by the interest shown in tourism companies that represent an exit from the pandemic.

Our office in Zikhron Yaakov overlooks the pedestrian street of the old town. We cannot wait to see the tourists back.

Yours,

Michael Jakoby

Dedicated to my friend Moshe Kiali, who left us too soon.