January Monthly Snapshot

361 Global Long/Short Equity Fund

Global equity markets soared in January and investors poured money into stocks in a fear of missing out moment. Within this euphoric environment, the Fund produced a gain of 3.69% outperforming the Morningstar Long/Short Equity category average (3.34%), but trailed the MSCI World Index’s return of 5.28%. The Fund’s net exposure (approximately 70%) was the primary detractor, given the strength of equity markets—costing the Fund about 164 bps. Considering sector positioning, the most impactful exposures were net short positions in Real Estate and Telecom, which added 26 bps and 22 bps, respectively. The Fund’s beta profile also hindered performance, as the highest volatility stocks by quintile, which the Fund is short, outperformed lower volatility names. Beta positioning hurt relative performance by 44 bps in total. The alpha models were slight detractors, but strong stock selection relative to the alpha models more than offset the impact. At the country level, the large underweight to the US was the biggest negative, costing 28 bps, while an underweight to the UK added 0.31%.

361 Domestic Long/Short Equity Fund

Global equity markets soared in January and investors poured money into stocks in a fear of missing out moment. Within this euphoric environment, the Fund produced a gain of 5.72%, outperforming both the Morningstar Long/Short Equity category average (3.34%) and the Russell 1000 Index, which advanced by 5.49%. The Fund outperformed despite the headwind of its net exposure (approximately 70%), which given the strength of equity markets, cost the Fund about 166 bps. The lowest volatility stocks by quintile greatly underperformed the rest of the market, and overall beta positioning hurt relative performance by 30 bps. However, the alpha models performed exceptionally well, with the highest expected alpha stocks outperforming the lowest by a spread of 374 basis points, resulting in a contribution relative to the benchmark of 2.97%. Lastly, considering sector positioning, overweight to both Utilities and Real Estate cost the Fund 104 bps and 90 bps, respectively.