Investors fled Huaneng Power on Friday, driving it to a 3.8% drop following news that the company planned to invest US$440 million in a new thermal power plant in Liaoning province. Although the power plant may generate future returns, investors obviously disliked the additional near-term capital expenditure necessary for the power plant’s construction. No news seemed like bad news for the Roader’s other stocks. Still, an overall decline in the market indicated that the losses may simply be part of a broader trend, and we choose not to construe the declines as a signal to abandon any of our current holdings.
The Capitalist Roader Fund is down 35.3% from June 3, 2008. The SCI is down 12.3% from June 3, 2008.