Please ensure Javascript is enabled for purposes of website accessibility

CAD January Market Commentary

CAD January Market Commentary

Noteworthy Developments

Global equities, as represented by the MSCI ACWI Index, appreciated strongly by 4.5% (3.4% in USD) with all regions experiencing positive performance. The CAD weakened by 1.1% vs. the USD. 

Global Equities

Global equities climbed by 4.5%, with US large-cap equities (S&P 500) up 3.9% while international developed (+6.4%) and emerging market equities (+2.9%) also delivered positive returns. US equity performance was driven by generally strong corporate earnings and economic data, and investor relief as Trump administration tariff policy through January appeared more benign than feared. This more benign tariff news buoyed investor sentiment for international developed stocks (particularly European equities), which had been depressed as international companies were feared to have more exposure to potential negative effects from tariffs. 

Globally, value stocks (+5.3%) outperformed growth (+3.7%). Communication services, healthcare, and financial sectors performed best (+9.1%, +7.4% and +7.2%) while technology and consumer staples (flat and +2.8%) performed worst. 

Fixed Income 

The BOFA Canada Broad Market Index was up 1.1% with performance driven by a combination of coupon income and declining bond yields. Government, provincial, and corporate bonds all climbed between 1.0% to 1.2%. Bond yields declined by 15bps to 25bps across the curve. 

Alternatives 

The HFRX Global Hedge Fund Index was up 2.1% (+1.0% USD) with most strategies delivering positive performance. Long/short equity and convertible arbitrage strategies performed best (+3.2% and +2.8%) while global macro / trend following strategies performed worst at +0.8% .

Manager Comments

Alphadyne: 3.5% 

Outperformed the HFRX Index (2.1%) and global macro/trend following strategies (0.8%) due to successful interest rate bets in the US and Japan. Both macro directional and relative value trades contributed to strong performance.

Eminence: 6.8%

Outperformed the MSCI World and US SMID Cap indexes (4.6% and 4.4% respectively) with positive performance from idiosyncratic positions driving outperformance.

Facebook
LinkedIn
Email

BCA is not for everyone – and we are proud of that distinction. We look for a select group of individuals (and their entities) whose financial position and preferences enable them to thrive while working with us.

We welcome your interest. Please give us at call at +1-406-556-8202 or fill in the form below to set up a confidential exploratory consultation.