October Monthly Snapshot

361 Global Long/Short Equity Fund

October was a continuation of what has been a persistent trend for 2017: risk-on. This can be seen through the MSCI World Index return of 1.89% for the month, which is now up 18.21% for the year. Periods such as these tend to be difficult for the 361 Global Long/Short Equity Fund, which posted a positive return of 0.33%, as the higher beta stocks within the market moved higher (the strategy tends to short this part of the market). October performance brings year-to-date performance for the Fund to 12.75%, outperforming the long/short equity peer universe by a reasonable margin of 4.17%. A less than 100% market exposure for the Fund created a headwind, costing the Fund about 55bps. On a relative basis, the fundamental factor model, i.e., Alpha Model, was a slight detractor, as the highest predicted alpha stocks, where the Fund tends to have the most net long exposure, underperformed. At the sector level, a net short exposure in Energy contributed to performance, while an overweight to Health Care was the largest detractor.

361 Domestic Long/Short Equity Fund

October was a continuation of what has been a persistent trend for 2017: risk-on. This can be seen through the Russell 1000 Index return of 2.29% for the month, which is now up 16.78% for the year.  Periods such as these tend to be difficult for the 361 Domestic Long/Short Equity Fund, though the Fund posted a positive return of 2.92%. With the upward movement in U.S. equities, a net exposure of 70% was a headwind, cost 64bps in relative performance. Stock selection within the Alpha Model shined for the month, adding over 2.00% of relative performance. At the sector level, net short Energy (+0.30% relative performance), overweight to Utilities (+0.27%) and underweight Industrials (+0.19%) all contributed nicely.