In an effort to keep you updated on the 361 Global Long/Short Equity Fund, below are some highlights for the month – mainly to provide context around the Fund’s recent monthly performance.
May 2020 Highlights:
• In May, AGAWX was up 1.74% outperforming the Morningstar Long/Short Equity Category which was up 1.68%. The benchmark MSCI World Index was up 4.83%.
• Individual stock selection accounted for much of the difference in return between the global and domestic strategy – specifically in the communication services and healthcare sectors.
• The continued outperformance of high beta stocks weighted on the funds. Quarter to date, high beta stocks are up nearly 30%; on a rolling two-month basis, high beta stocks are returning 10% more than they have over any other two-month time frame in the last 10 years an atypical environment and uniquely challenging for our approach.
• Even with this substantial two-month headwind, both funds are outperforming their benchmarks YTD due to the protection provided during the sell off in February-March. It is that protection the strategy ultimately seeks to provide investors and one that, over time, we believe will result in stronger risk-adjusted returns; To hear the Portfolio Manager, Harin de Silva, talk more about the benefits of long/short equity funds in negative market environments, follow this link.