Monthly Update: April 2019
- April was a strong month for global equity, with improving economic data and dovish central bank comments supporting appetite for higher risk. US equities hit record highs at the end of the month.
- The current economic slowdown is turning out to be a lot milder than expected, with figures in the US (GDP, jobs) and the Eurozone (GDP) suggesting moderate growth and no risk of recession.
- Quarterly company results being published are also holding up well, across all regions and sectors.
April proved a mixed month for our equity strategies, with outperformance in our long only fund not matched by good absolute showings in the market neutral SIF and Balance. For Aphilion SIF this was obviously linked to a weaker contribution by the short positions. The long positions in the SIF outperformed in line with our long-only fund, but the short positions outperformed even more...
For Balance there was the fact that the Eurostoxx 50 performed very strongly in April: +4.9% vs. +3.2% for the broader MSCI Europe Index. Balance hedges European exposure with the Eurostoxx 50 futures contract (a choice for liquidity) and although our European positions outperformed the broader market, they lagged the Eurostoxx 50.
Jan Holvoet, Nico Goethals, Xavier Boussemaere