July Monthly Snapshot

361 Global Long/Short Equity Fund

July was a “risk on” environment, with the MSCI World Index finishing +4.22%. The 361 Global Long/Short Equity Fund participated in that rally to an extent, generating +2.79% for the month.  Markets such as July, are ones where the strategy can lag given riskier stocks tend to rally (as was the case) and safe haven stocks tend to underperform. Within the MSCI World, the highest beta stocks (classified as quintile five in the portfolio) moved up 6.04%, while quintile one (i.e., lowest beta stocks) were up 1.25%. Given the Fund is short quintile five, it was a material headwind.  Elsewhere in the portfolio, the Factor Model was additive, while the stock selection lagged, resulting in a modestly negative attribution relative to its benchmark. In aggregate, portfolio positioning across the 10 sectors was additive. The two largest detractors were Consumer Discretionary and Materials. Bright spots included Consumer Staples and Information Technology. The remaining underperformance relative to the +100% net exposed long-only benchmark is related to the net market exposure of roughly 70%.  Given the overarching thesis of investing long in lower beta stocks (i.e., those safe haven stocks) coupled with the market action during the month, performance was in line with expectations.