Diamond Circle Capital, an investment fund dealing with high-quality diamonds, reported unrealized gains of $5.64 million for the year that ended on December 31, compared with a loss of $264,909 in 2010. Profits surged to $3.44 million compared with a loss of $2.3 million in 2010. At the close of the financial period, Diamond Circle Capital reported holding diamonds worth $47.97 million, up from $44.74 million one year earlier. Total company assets rose 5.6 percent year on year to $53.49 million. According to the company’s regulatory filing, the portfolio consisted of approximately 68 percent colorless diamonds and 32 percent was of colored diamonds.
Company chairman, Rupert Cottrell, explained to shareholders that 2011 was a landmark year for record diamond prices. The company sold four stones for a gain of $1.9 million based upon December 31, 2010 market values and reinvested the bulk of the proceeds, $8.7 million, in saleable top-quality stones, he explained.
”Given the global condition of woe within the Eurozone and elsewhere, I believe that Diamond Circle Capital has performed well in the circumstances, demonstrating the need for a safe asset class of this kind and caliber,” he said.
During the year, the company hired AUM Asset Management Ltd. to replace Diapason Commodities Management SA as its investment advisors, resulting in a 33 percent reduction in advisor’s fees. ”The new management had a clear mandate from the board and shareholders to be more proactive and take advantage of the many arbitrage opportunities that occur within the diamond market,” Cottrell said.
Diamond Circle Capital reduced expenses 5 percent overall in 2011, and at the present time, ”the board is looking at ways to improve our transparency, communication with shareholders and interested parties and our public relations in order to give a degree of publicity to the company’s reworked philosophy and strategy,” Cottrell said.