October Monthly Snapshot

361 Global Long/Short Equity Fund

Global equity markets were down during the month of October, with the MSCI World Index falling 1.94%.  By contrast, the 361 Global Long/Short Equity Fund returned -1.28%, due in part to the 70% net market exposure of the strategy.  An additional tailwind came from stock selection within the fundamental factor model, most notably driven by stock picks within lowest expected return companies where the Fund is short.  Currency and country exposures further buoyed performance, although these allocations are a byproduct of the global mandate of the portfolio versus a top-down, macroeconomic view.  The beta profile of the Fund was a net negative.  Four of the five beta quintiles within the MSCI World Index fell during the month, with only the highest beta stocks, which the Fund tends to be short, ending in positive territory.  This was a negative for the Fund, as it was unable to sidestep that performance.  At a sector level, in aggregate, exposures were a detractor relative to the market, though stock selection intra-sector was a significant positive.