RUG Renn Universal

 
TIDMRUG 
 
Renaissance US Growth Investment Trust PLC 
 
July 2009 Newsletter 
 
We have been updating you between the annual and interim reports using 
newsletters. These are not intended to provide detailed financial information 
as in formal reports, but rather to provide an overview of your Company's 
activities during the previous quarter. 
 
Net Asset Value 
 
Your Company's net asset value at 31 July 2009 was 267.32 pence compared with 
248.42 pence on 31 March 2009, a gain of 7.61% compared with a gain of 13.30% 
in the Russell 2000. For the calendar year through the end of July, your 
Company has a gain of 1.52% against a loss of 1.78% for the Russell 2000. 
 
Portfolio Activity 
 
During the last quarter, we completed the sale of A-Power Energy Systems 
realising a gain. We also sold a small portion of our Bovie Medical Corporation 
for a gain. We also wrote off the remaining value of eOriginal as it became 
clear our securities had little value. 
 
The portfolio reflects three main themes: first, a big participation in the 
growth of China; second, several holdings in private companies which are valued 
at cost and which are due to be listed at higher prices; and finally several of 
our legacy holdings which are performing better. The value of our US listed 
Chinese companies represent 37.6% of the portfolio value. The unlisted Chinese 
companies represent 17.6% of the portfolio value. The total Chinese operating 
companies represent approximately 55.2% of the portfolio value, and all the 
companies are listed or scheduled to be listed in the US. We continue to see 
rapid growth in China and feel confident that this allocation will serve your 
Company well. As at 25 June, the Financial Times reported that 2009 GDP growth 
rates were forecast as follows, Japan, -6.8%, Eurozone, -4.8%, US, -2.8% and 
China, +7.7%. 
 
According to the Wall Street Journal, China is expected to displace Japan this 
year as the largest vehicle manufacturer. Naturally, the auto parts industry is 
a beneficiary of the growth of the automobile manufacturing sector. Portfolio 
holding Wonder Auto Technology, Inc. designs develops and manufactures 
automotive electrical parts and engine accessories. For the three months ended 
June, the stock was up as it continues to benefit from the auto sector growth. 
For the quarter ended March, 2009, the company reported sales growth of 25.5% 
year-over-year to $40.0 million and earnings growth of 29.7% compared to the 
prior quarter. During our last meeting with management we learned more about a 
new development agreement with a Korean auto company which makes specialised 
electric vehicles. We are impressed with Wonder Auto's management team and its 
commitment to enter into the electrical and hybrid vehicle markets. 
 
SinoHub, Inc. (OTCBB: SIHI) was founded by Henry Cochran, an American, who 
lives in China. The company provides supply chain management and vendor managed 
inventory services to electronic product manufacturers and component suppliers 
and distributors in China. The platform integrates an online supply chain 
management software system, logistics service centers in distribution/ 
manufacturing cities and the various service teams with up to the minute market 
knowledge of electronic supply and demand. The company's services include 
import and export services, procurement and warehouse services and delivery 
services. For the three months ended 31 March 2009, the company reported a very 
impressive 83% increase in earnings on a 56% increase in revenues 
year-over-year. Recently the volume of share trading has increased 
substantially and the shares have appreciated by approximately 56% since the 
end of June. The company is also in the process of listing on the American 
Stock exchange with a view towards an eventual New York Stock Exchange listing. 
This new listing, along with the company's strong operating results, should 
dramatically improve visibility and thus liquidity in the shares. 
 
Skystar Bio-Pharmaceutical engages in the development, manufacture and 
distribution of vaccines and medicines for poultry, birds, livestock, and 
domestic pets in the People's Republic of China and was a large gainer this 
quarter. Weibing Lu is the CEO of Skystar. In 2002, Mr. Lu was named 
Outstanding Entrepreneur of Xian Feed Industry. Skystar continues to innovate 
and now has 173 products, up from 100 a year ago. The stock ran up as a result 
of three factors: first, a reverse stock split; second, the stock transferred 
from OTCBB to a NASDAQ listing; and third, a registered direct offering that 
closed 1 July 2009. The fact that Skystar was able to raise $18 million in this 
environment is a huge vote of confidence for the company. Management will now 
be able to expand the production capacity in its two most profitable business 
segments, both of which are currently at or near capacity. Thus, the company 
should now be able to maintain its growth rate. 
 
ChinaCast Education Corporation is a leading provider of for-profit post 
secondary education and e-learning services in China. One of our largest 
percentage gainers this quarter, it reported excellent first quarter results 
ended March. Quarterly revenue increased 33% year-over-year with earnings 
increasing 146% year-over-year. The company was also added to the Russell 3000 
& Russell 2000 index which should increase its visibility among investors and 
contribute to increase liquidity and shareholder value. 
 
Cover-All Technologies Inc. provides software products and services for the 
property and casualty insurance industry and, unlike the other companies 
mentioned, is a US company whose main business is in the US. The company's 
software products and services focus on the functions required to underwrite, 
rate, quote, issue, print, bill and support the various lifecycle of insurance 
policies. Recently Cover-All Technologies' My Insurance Center was described as 
an industry leader in Celent's new report, "Policy Administration Systems for 
Commercial Lines P/C Insurers US 2009" which is widely circulated in the 
insurance industry. Cover-All reported its strongest year ever with net income 
of $4.6 million up 270% from the last calendar year. The company has made 
significant progress and has tremendous potential to make further progress in a 
very large addressable market. 
 
Conclusion 
 
We believe 2009 will be a better year for our portfolio which should benefit 
both from acquisition activity and the listing of several unlisted holdings. 
These anticipated developments could create value above and beyond normal 
market activity and we believe our discount to net asset value creates an 
opportunity for investors. 
 
Russell Cleveland, RENN Capital Group, Inc. 
 
 
 
END 
 

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