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Mongolia Growth Group March Shareholder Letter

|Includes:Mongolia Growth Group Ltd. (MNGGF)

The weather is thawing in UB along with a heating up of realestate prices and activity:

With the warmer temperatures, leasing activity is beginning to pick up. Once again, we are seeing increases in rents as the 2013 season begins. Just as interestingly, we see very robust demand for high quality locations.

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In summary, I feel that we are at the start of the period where Mongolian interest rates begin to decline to rates similar with more developed countries. This all seems to support a new growth phase in property prices following the dip in prices in the last half of 2012. More importantly, evidence on the ground seems to support this thesis as we've seen some increases in prices as the weather has grown warmer.

You can read the entire letter here.

In addition BDSEC, the largest broker in Mongolia, put out research on MGG with a $6.00 price target. Here is the link to that report. The stock dropped as low as $3.00 yesterday and I was in buying shares. It has since rebounded some today.

Disclosure: I am long OTCPK:MNGGF.

Stocks: MNGGF