August Monthly Snapshot

361 Global Long/Short Equity Fund

August was effectively flat for developed global equity markets, as the MSCI World Index finished up eight basis points. Within that index, high beta and low beta were nearly polar opposites, with the lowest beta stocks down 3.62% and the highest beta stocks up 3.56% (categorized by the 361 Global Long/Short Equity strategy as quintile one and quintile five, respectively). Over this time period, the Fund’s long exposure to low beta stocks and short exposure to high beta stocks similarly resulted in negative performance, and finished the month down 1.81%. Given headwinds from both low beta and high beta, the performance profile for the Fund for August was better than may have been expected, as the overall structure of the Fund proved additive (i.e., maintaining exposure across all quintiles versus static long exposure to quintile one and short exposure to quintile five, as dispersion was present.)  At the sector level, seven out of the 11 sectors (Real Estate is its own official GICS Sector) were negative. Of those, the most significant were Materials and Energy, with stock selection in Materials accounting for the bulk of the underperformance. Healthcare, on the other hand, was a standout with an underweight and stock picks driving outperformance. Looking forward, the Fund is positioned with meaningful net long exposure to Information Technology, Consumer Staples and Consumer Discretionary sectors, while the only net short positioning is in Energy.  It is critical to note that these sector tilts are the result of the overarching risk and factor momentum models, versus taking explicit bets on sectors based on macroeconomic events.