Due to a strong recovery for most of our CTA/Managed Futures positions the fund gained more than 2% over March. The CTA/Managed Futures strategy won in total more than 4%. Momentum is back in most of all markets and especially in the Equity and Bond Markets. Also helping was the strengthening of the USD (1.8%) compared to the EUR. All other strategies failed to perform during March and ended up in the red. Global Macro performed the worst with a loss of 2.45% followed by Equity Long/Short strategies. The last one was the most disappointing one, while equity markets did well they ended up at the losing side.
We started Altaica Global Sustainable Long Short Equity Strategy on a relatively low level of leverage. In the first weeks we even didn’t take any leverage. During the month we build up the leverage up to 66%. We were able to make some market timing by increasing the leverage on week market moments. This all together resulted into a gain of more than 4% during March, by this we outperformed our benchmark by about 3%. The top performers in our portfolio were: Accenture (+8.02%), SAP (7.81%) and Lowe (+7.52%). At the other side we had also some positions which performed in a negative way; Applied Materials (-6.40%), Svenska Handelsbanken (-5.33%) and Walt Disney (-2.41%).
This is the last month of this strategy. Next month we will implement the new strategy. The fund also will be renamed into Altaica Global Sustainable Long/Short Equity. In February China performed extraordinarily with a gain of 19.97%. The Chinese equity market is inspired by the positive developments of the trade negotiations between the US and China. It also looks like the Chinese economy is recovering of the (unreported) recession of 2018. The tensions between India and Pakistan are still influencing the equity market of Pakistan. During February the Pakistan equity position lost 5.5% of its value. In the first week of March we will sell the China and Pakistan positions to build up a total new portfolio.
The Altaica Multi Alpha Strategies fund lost 0.24% during the month of February. The CTA managers and Global Macro managers were still not able to benefit from the sharp turn in momentum in a wide range of assets. Within the CTA managers we see a wide diversity in performance. Two of our managers performed well with profits of almost +5%. However, one of the most aggressive managers performed dramatically with a loss of almost 20%. The result of February was saved by the Equity Long/Short investments. This strategy performed well with a profit of 6.16%.
After a turbulent last quarter we kept the portfolio in the safety mode. In total the portfolio was able to gain more than 2% during January 2019. Especially Pakistan was performing in an excellent way. The Pakistan tracker gained more than 13%, a remarkable recovery. The Chinese Mid Cap equities did also well but on a more modest pace. The CSI 500 index rose more than 3% during January.
January 2019 was a perfect copy of disaster month October 2018. Also this month we lost about 4% of the fund value due to sharp turnarounds in a wide range of markets. During December the technical patterns and momentum for the equity markets were indicating a further downturn. Also everybody was expecting a further raise of interest rates, especially given the hawkish approach of the FED. Last but not least also the commodity markets were in a serious downturn. All momentum and systematic trading strategies were positioned for the extension of the December directions of the markets. January was however a month which started with movements into different directions on the markets due to a more reasonable approach of the…
During the month of December with quite some volatility we decreased our exposure to most of the markets and went to 70% cash. However, we still suffered a loss of 5.6%. We only kept our position in Chinese Mid Cap Equities and Pakistan. The Chinese equities lost about 11% and Pakistan equity market went down by 18%.
During December the equity markets went down by more than 5% on average. The fund was able to limit the losses within the -1% range. The best performing strategy was Gobal Macro with a solid 2.8% gain. At the other side we find Credit Strategies and Volatility Trading. Both strategies were losing about 4% of their value during December 2018. Looking back over 2018 we started with some volatility. The second and third quarter the fund performed pretty well. This positive trend came brutally to an end in the fourth quarter. Market volatility and direction changes came abrupt and disruptive. Trend following strategies couldn’t follow and became the victims of the markets. For January we also expect that this type…
November ended in a positive way with a gain of 1.09% for the fund. There was a lot of diversity in the development of the equity markets in Eur-Asia during November 2018. The best performing market was Turkey with a gain of more than 12%. Second best was India, this market won almost 6%. All other markets ended in the red. Our positions in China were loosing about -1.5%. Half of our investments in China were allocated to the CSI500 index. This small cap index performed relatively well with a small gain of 0.1%. The investments in Chinese large cap equities performed considerably less good with a loss of about -3%. Russia, with a monthly result of -0.2% performed slightly negative….
November didn’t give the opportunity to our Hedge Funds to recover, we ended November with a small loss of -0.68%. The total performance was slightly influenced by some headwind of the US Dollar. During November almost all strategies gained a little, except Global Macro. One of our two Global Macro strategies suffered a big loss of -16.4%. This resulted in a loss for the Global Macro managers of -8.3%. This was the main event in the portfolio development. Within the CTA managers there was a lot of diversity in performance. Some of them won more than 4% and one other lost almost -4%. Together they produced a solid 0.6% gain over November.