• Character Counts

    April 16, 2018
    Justine Schulerud
    Business Development

    The Boston Marathon, also known as Marathon Monday, is a big day for many of us runners here at 361 Capital—whether we’re racing, supporting friends and family or simply watching for the love of the sport. This year was as exciting as ever as, for the first time since 1985, an American woman claimed the Boston Marathon title. The forecast for the race looked gloomy with rain, wind and temperatures in the high 30’s. Anyone who follows distance running, and marathons, knows that the African countries have dominated the sport for years. The race was stacked with some of the best American distance runners to date—Shalane Flanagan, Des Linden and Molly Huddle to name a few. This year, there was much talk prior if this was finally the year where an American could take the crown to break the 33-year drought.

  • Is Value Still Valuable?

    April 13, 2018
    Small Caps

    Lately, Value has not been very valuable within small cap stocks. Save for a couple of weeks last December, the Russell 2000 Value Index (RUJ) has underperformed its Russell 2000 Growth Index counterpart (RUO) on a rolling 13-week basis since February 2017. The chart below shows the relative price difference between the Russell 2000 Growth Index and the Russell 2000 Value Index. The grey bars represent 13-weeks and the black line 52-weeks. Both are rolling compounded returns.

  • Active managers were able to ring in the new year with some of the most favorable market conditions for stock picking on record. Spiking correlations in the first quarter have officially spoiled the party.

  • Finding “The Masters” of Long/Short Equity

    April 06, 2018
    Due Diligence, Long/Short Equity

    It’s Masters week… one of the most historic and watched sporting events in the world. The game of golf is a complex sport, and Tiger, Phil, Jordan, and crew work tirelessly to understand and overcome the challenges of the game. This is done with patience, process and study to get the best performance out of each swing. As I sit and watch these guys try to read every little nuance of the green (break, speed, grain, etc.) before hitting their putts, I’m reminded of the painstaking due diligence process investment professionals go through when selecting a manager, especially in a more complex category like Long/Short Equity. With wide dispersion among Long/Short Equity managers, it’s critical that due diligence processes are thorough. To help in your manager selection process, we’ve provided several points of consideration.

  • Did Managed Futures Disappoint?

    March 29, 2018
    Managed Futures, Performance Chasing

    There has been a lot of talk about the performance of hedge funds, and in particular CTAs/Managed Futures funds, in February when markets sold off for the first time in recent memory. People seem to be surprised that these strategies posted negative returns in February, while the S&P 500 was down 3.69%. I’d like to address why such a focus and such expectations are unjustified. While I am going to focus on the managed futures space, the following themes can be applied to all strategies.