Dear Fund Managers,

I hope this message finds you well. I am reaching out to provide you with a comprehensive update on recent market movements that have affected key stocks within our portfolio. Please find the details below:

HLCAP, IMASPRO, RAPID, and YNHPROP: Over the past few weeks, we have observed a significant decline in the share prices of HLCAP, IMASPRO, RAPID, and YNHPROP. According to reliable sources, the sell-off of Dr. YYY's stocks was primarily initiated by investors who lend money to company owners in return for monthly interest.

Representatives from Dr. YYY reportedly failed to meet interest payments, prompting warehousers to initiate the sell-off, particularly after Christmas last year. Subsequently, other investors who had invested with the warehousers or acted on rumors were compelled to sell their shares due to margin calls.

Notable brokers involved in providing margins to investors include AmBank, CGS-CIMB, Maybank, Mercury, RHB, and UOB. Additionally, there are indications that banks offering collateralized loans to Dr. YYY are seeking to increase their collateral size, signaling concerns about his ability to service his loans.

LEFORM: The sudden drop in LEFORM's share price from 50 sen on Tuesday to 17.5 sen today resulted from a company director selling his stake at 50 sen. This prompted other investors within the same "investors group" to follow suit. Notably, this counter is heavily cornered, and most investors using margin financing are affected. The selling pressure from the director's share sale, along with subsequent margin calls, significantly contributed to the share price decline.

ARTRONIQ & SCIB: Both ARTRONIQ and SCIB experienced declines during the same period as LEFORM. According to a reliable source, the sell-off in these stocks was primarily triggered by a margin call from businessman "Dato XXX," aiming to cover losses on his other collateralized share holdings.

Considering the current market dynamics, it is advisable for the fund to consider picking up fundamentally strong small-cap stocks that may have been impacted by this sell-down. This strategic move positions the fund to enjoy potential upside gains when these stocks revert to their mean values.