· Markets came under pressure as an increasingly hawkish Fed drove the worlds discount rate higher (US 10-year treasury yields rose 58bps to 2.94%). Longer-dated, higher-rated assets sensitive to the rate adjustment suffered disproportionately.
· Both equities and bonds fell. Credit spreads widened and volatility spiked. FAANG earnings peaked - with slowing growth, Russian sanctions, and China lockdown supply chain constraints blamed for a dim outlook.
· US Q1 GDP surprised with a negative print. The USD rallied against major currencies as global liquidity tightened. Gold failed to protect portfolios. Cash went from trash to King. Bear market alert!
· The Fund (-3.3%) performed reasonably well on a relative basis, outperforming global equities (-8.1%) by 480bps – our large US financial short partly offsetting China Tech losses.
NUMBERS & OUTLOOK:
· We’ve cleaned up the Fund numbers – separating the 1.) Incubation account returns (Grey) and 2.) Audited family office Fund results (Black). Both sets represent DBS final money weighted rate of return calculations net of transaction fees.
· Returns prior to the Feb21 asset injection represent incubation account returns while awaiting MAS SFO approval.
· We are pleased with the audited track record (last 15 months), delivering a healthy +23.9% return vs the MSCI AWCI (Global Equities) +2.1%, representing almost 22% outperformance over the period.

· Returns continue to meet our multi-level target of; 1.) Positive annual results , 2) Greater than (>) 15% pa and 3.) Greater than (>) global equities (as represented by the MSCI ACWI) – with less than half the market downside volatility.
· We see significant alpha opportunity as Chinese policy diverges from the world off a depressed base.
Disclaimer
You understand that no content published on this site constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific persons. No blogger, authors, information providers are advising you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.
All content presented is as at the date of publish, and may be superseded by subsequent market events or for other reasons.
The content of the site is not intended to provide tax, legal, insurance or investment advice, you are responsible for such undertakings.
The author, blogger, or content link may or may not have positions in securities or assets mentioned, and does not receive compensation for content provided or have a business relationship.
Stellar James website disclaimer upon entering, applies to all blog and other website content.
Commenti