November Monthly Snapshot

361 Global Long/Short Equity Fund

November was a positive month for developed global equities, as marked by the 1.44% return for the MSCI World Index. The 361 Global Long/Short Equity Fund ended the month up 0.18%. Worth noting was the performance dispersion between high beta stocks and low beta stocks, which has been a significant trend for 2016. This phenomenon has not been exclusive to the U.S., where the S&P High Beta Index was up 12.89% for November, while the S&P 500 Low Volatility Index returned +0.54%. Within the MSCI World Index, the universe for the 361 Global Long/Short Equity Fund, high beta advanced by 5.23%, while low beta was down 1.17%. The overarching beta profile was a headwind for the strategy and, given the structure of the Fund, one could have expected it to be negative for the month. Helping prevent that was the Fund’s exposure across the beta spectrum, as moderate beta stocks caught some of the tailwind and contributed positively to return (highlighting the benefit of an actively managed strategy over a naïve allocation to low volatility). Additionally, the factor momentum model, was accurate in picking stocks it thought would move higher, further buoying performance. At the sector level, only two of the sector tilts were additive (Real Estate and Utilities). Stock picks intra-sector were a tailwind with five of the 11 sectors experiencing positive stock selection. Given the headwinds from the sustained and significant outperformance of high beta stocks, the 361 Global Long/Short Equity Fund continues to demonstrate its all-weather nature by maintaining performance in one of the most difficult periods for the strategy since its inception.