Category

Emerging Alpha Eur-Asia

April 2020: Altaica Sustainable Long Short Equity: 7.69%

By | Emerging Alpha Eur-Asia

With a gain of +7.7% we almost offset the loss of March 2020. Year to date we closed the gap up to -4.1%. World equity markets, reflected by our long only benchmark is -13.2% YTD. Since the start of the strategy in March 2020 we are still generating a positive return with 22.8% and a rolling 12 month return of +10.3%. We outperformed the long only benchmark since the start with +24.9%. The recovery of the equity markets during April 2020 was as impressive as the downturn in March. However, much more difficult to manage and to understand. While the economic impact of the COVID-19 virus becomes every day more clear and depressive, markets started a new bull market. The…

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March 2020: Altaica Sustainable Long Short Equity: -7.99%

By | Emerging Alpha Eur-Asia

Worldwide equity markets took a nosedive and ended March 2020 with losses of about 15%. The impact of the Covid-19 virus and the lockdown measures of governments worldwide became more clear. The total impact is unclear for everyone and largely depends on over how much time it takes until economies will be open for business again. The fund kept the downside risk limited, our hedge strategies did their job. As a result of that the loss over March 2020 was limited to -7.99%. By this the fund outperformed the world equity markets by around 6.4%. The total accumulated outperformance, our Alpha, is around 24% over the last 12 months. By closing of the ETF positions at the start of the…

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February 2020: Altaica Sustainable Long Short Equity: -3.97%

By | Emerging Alpha Eur-Asia

Equity markets sentiment was extremely bullish during most of February 2020, until its last week. An abrupt and devastating change in sentiment and market direction was ignited by the Covid-19 virus. The virus started to spread all over Europe. Heavily hit by the virus are Italy and Spain. Just these two countries which are still struggling to recover from the financial crisis were forced to close down large parts of their economies. Almost all our individual equities ended the month with losses. The only exeptions were Novozymes (+5.26%) and Applied Materials (+0.95%). The most heavily hit equities in our portfolio were; Walt Disney (-14.28%), Cisco Systems (-12.5%) and Danone (-12.23%). The sectors Technology and Industrials took the hardest hits. The…

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January 2020: Altaica Sustainable Long Short Equity: 0.82%

By | Emerging Alpha Eur-Asia

Equity markets extended the strong bullish trend of 2019 in early January 2020. However, at the end of January the positive sentiment got disrupted by the Corona virus worries. All major indices ended up in the red for January. The hedge position of our portfolio kept the portfolio result positive over January. This gave us an outperformance of 1.42% over the Long Only Equity Benchmark. The best performing company in the portfolio was Novozymes (+11.8%), followed by Microsoft (+5.4%) and RELX (+5.2%). Negative results came from Illumina (-13.4%), Applied Materials (-7.5%) and ASML (-6.95%). But the biggest negative impact on the portfolio was caused by the Emerging Markets ESG ETF; this is a large position and over January it suffered…

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December 2019: Altaica Sustainable Long Short Equity: 1.64%

By | Emerging Alpha Eur-Asia

During December 2019 the fund was able to gain 1.64%, bringing the Start To Date performance above the 25%. The combination of a portfolio with a high positive ESG rating and best of class performance (Morningstar) makes Altaica Sustainable Equity Long Short Fund a proposition that is different than the mainstream offerings. We started the month carefully without any leverage. During the month the sentiment turned and it gave us the courage to gear up to a leverage level of almost 60%. The portfolio is still hedged. The best performing shares belonged mainly to the IT sector. Especially Adobe (+7.8%) and Cisco (7.3%) delivered a strong performance. On the losing side we found shares like Assa Abloy (-2.4%) and Walt…

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November 2019: Altaica Sustainable Long Short Equity: 5.60%

By | Emerging Alpha Eur-Asia

The portfolio performed strongly during November 2019. With a gain of 5.6% it outperformed our long only benchmark by more than 2.4%. This brings us to a total performance of 25.95% since start in March 2019. Our outperformance of the long only benchmark is now up to about 14.5%. The outperformance related to the Long Short Equity Benchmark is more siginificant. At the very end of the month we reduced our leverage factor to zero. The strong positive performance over the last months is making us a bit more careful at the end of the year. The portfolio is still 100% long but also fully hedged by put options on the AEX Index against a market drop of around more…

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October 2019: Altaica Sustainable Long Short Equity: 0.90%

By | Emerging Alpha Eur-Asia

During October the fund was able to deliver a positive return. However we were not able to catch up with the VanEck Vectors Sustainable World Equal Weight ETF. Due to some sector rotation in the markets and the expenses of our portfolio hedge the fund had a small underperformance. We added the iShares S&P Global Clean Energy ETF to the portfolio due to two reasons. First of all, to improve the diversification of the portfolio; according to the fund’s nature the fund has an underweighted position in the energy sector. We avoid the polluting carbon energy sector. By adding the Clean Energy ETF we compensate this underweighting. Secondly, we like to increase the impact factor of the fund. Not only…

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September 2019: Altaica Sustainable Long Short Equity: 1.79%

By | Emerging Alpha Eur-Asia

During September the portfolio added a solid 1.8% performance to the result since the start of the Altaica Sustainable Equity Long Short Fund, bringing it up to 18.2%. During September we stayed invested while hedging the portfolio by buying put options on the AEX Index. The Put Option position returned negative due to rising equity markets. This tempered the overall performance of the portfolio. Because of this the portfolio underperformed compared to the Think Sustainable World ETF. However, since the start on the 1 March 2019 the outperformance relative to this ETF is about 11.5%. We remain confident regarding our positioning with solid downside protection given the combination of (very) positive equity sentiment and the fact that some important issues…

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August 2019: Altaica Global Sustainable Long Short Equity: 2.29%

By | Emerging Alpha Eur-Asia

A solid performance for the strategy during a volatile month. The fund gained 2.3% which resulted in additional alpha generation. Compared to the Think Sustainable World ETF the outperformance since the start is around 13%. Main contributor to the performance and alpha is the equity hedge position at the start of the month. We added a significant position of AEX Put options to the portfolio at the end of the previous month. This AEX Put option position was closed near the bottom of the markets. The main contributors to the result in the portfolio are: Lowe’s (+12.1%), Pepsico (+8.1%) and Home Depot (+7.8%). The biggest drag to the result came from: Cisco (-12.6%), Assa Abloy (-8.5%) and Union Pacific (-8%)….

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July 2019: Altaica Global Sustainable Long Short Equity: 2.05%

By | Emerging Alpha Eur-Asia

During July we performed in line with the global Sustainable Equity benchmark. We got some headwind by the losses on our derivatives bought end of June and start of July. After a fabulous June performance we decided to take some protection in the portfolio in case market sentiment would change in a negative way. As the markets performed in a positive way our derivates ended up with a 10% loss. A second drag on the performance came from Illumina. Illumina indicated softer than expected preliminary second-quarter results uDespite the lowered growth outlook for the remainder of the year, the demand prospects remain favourable for the foreseeable future. Also Svenska Handelsbanken lost 6,5% over July due to weak numbers. Not all went south,…

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