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

By september 4, 2019Emerging 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%). In the portfolio we sold the position in Svenska Handelsbanken. The overall environment for banking is worsening due to the impact of negative interest rates. We see more opportunities in the other positions in the portfolio. We didn’t add any new names to the portfolio but distributed the cash over the shares which were impacted the most by the recent market turbulence.