February Monthly Snapshot

361 Global Long/Short Equity Fund

From an investing perspective, February witnessed a relatively normalized global equity environment. There was continued debate around the various policies and ideas within the U.S. political scene, but generally speaking, markets continued the trend upward. The 361 Global Long/Short Equity Fund generated 2.44% for the month, while the MSCI World Index generated 2.77% . Given the Fund’s net exposure of 70%, it outperformed what would have been expected.  The month witnessed a period where high risk did not pay off. The lowest beta stocks within the MSCI World Index were up 4.02%, while the highest beta stocks were up a mere 0.54%—creating a tailwind for the portfolio. Tilts within the Factor Momentum Model, the part of the strategy that seeks to exploit trends within fundamental financial factors, also performed well. Stocks predicted to move higher or lower did indeed move as such, providing positive attribution. Sector tilts were also additive. Energy was a standout during the month, as a net short exposure provided positive performance when that sector traded down. Healthcare, additionally, was a top performer stemming from a large overweight to what was the best performing sector within the universe. The portfolio also benefited from sound stock selection within Energy and Financials. Year-to-date, the 361 Global Long/Short Equity Fund has generated 4.90% (compared to 5.25% for the MSCI World Index)—in-line with expectations.