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.
November 2019 Highlights:
- AGAWX was up 0.63% versus the MSCI World Index which was up 2.79% in November.
- Similar to last month, when markets are up significantly, our net 70% exposure will detract from performance, as it did in November by 84 basis points. In addition, the high and low beta spread was even larger this month with the lowest beta stocks down slightly (0.07%) and the highest beta stocks up 5.07% creating a significant headwind for our approach.
- While the strong recent outperformance of high beta stocks has resulted in a challenging environment, it is important to remember that the goal of our strategy is to win over time by losing less in down markets. The Analytic team has observed that shorting the highest beta stocks in the MSCI World Index is a very efficient way of doing so over time – even though there are time frames like now where it is not as beneficial.