Noteworthy Developments: Global equities, as represented by the MSCI ACWI Index, appreciated by 3.0% (+2.2% in USD), with positive performance across all major regions. The CAD weakened by 0.8% vs. the USD.
Global Equities:
Global equities increased by 3.0%, with US large-cap equities (S&P 500) up 3.2%, international developed equities up 2.0% and emerging market equities gaining 5.0%.
The strong performance of the S&P 500 was driven by ongoing positive AI sentiment, better-than-expected corporate earnings, and an additional interest rate cut delivered by the Fed. Developed equity markets’ performance (+3.4% in local currency) was negatively impacted by currency translation. In local currency terms, European equities were up 2.6% and Japanese equities up 7.8%. The gains in emerging markets were primarily driven by strength in Korea (+23.6%) and Taiwan equities (+10.7%), which benefited from a narrow subset of semiconductor stocks’ strong performance.
Globally, growth stocks (+5.0%) significantly outperformed value stocks (+0.8%). Sector performance was mixed with the technology (+8.1%) and utilities (+3.8%) sectors performing best while materials (-1.1%) and financial sectors (-0.6%) performed worst.
Fixed Income : The ICE BOFA Canada Broad Market Index was up 0.7% with government, corporate, and municipal bonds all up between 0.5% and 0.8%. The strong performance was driven by coupon income coupled with price appreciation stemming from declines in bond yields of 5bps to 10bps across the curve.
Alternatives: The HFRX Global Hedge Fund Index was up 1.5% (+0.7% in USD), with all major strategies delivering positive performance. Convertible arbitrage (+2.5%) and global macro / trend following (+2.2%) strategies performed best.
Manager Comments:
Alphadyne: +3.6%: Outperformance vs. HFRX index driven by positive performance across both directional and relative value interest rate bets.
Eminence: -1.0%: Underperformance vs. ACWI index (+3.0%) driven by markdowns in certain consumer discretionary sector holdings following earnings reports.
Linden: +4.8%: Outperformance vs. HFRX index (+1.5%) driven by generally strong
performance by convertible arbitrage strategies as well as idiosyncratic benefits from
volatility capture coupled with new issuance events.
CAD October Market Commentary
Noteworthy Developments: Global equities, as represented by the MSCI ACWI Index, appreciated by 3.0% (+2.2% in USD), with positive performance across all major regions. The CAD weakened by 0.8% vs. the USD.
Global Equities:
Global equities increased by 3.0%, with US large-cap equities (S&P 500) up 3.2%, international developed equities up 2.0% and emerging market equities gaining 5.0%.The strong performance of the S&P 500 was driven by ongoing positive AI sentiment, better-than-expected corporate earnings, and an additional interest rate cut delivered by the Fed. Developed equity markets’ performance (+3.4% in local currency) was negatively impacted by currency translation. In local currency terms, European equities were up 2.6% and Japanese equities up 7.8%. The gains in emerging markets were primarily driven by strength in Korea (+23.6%) and Taiwan equities (+10.7%), which benefited from a narrow subset of semiconductor stocks’ strong performance.
Globally, growth stocks (+5.0%) significantly outperformed value stocks (+0.8%). Sector performance was mixed with the technology (+8.1%) and utilities (+3.8%) sectors performing best while materials (-1.1%) and financial sectors (-0.6%) performed worst.
Fixed Income : The ICE BOFA Canada Broad Market Index was up 0.7% with government, corporate, and municipal bonds all up between 0.5% and 0.8%. The strong performance was driven by coupon income coupled with price appreciation stemming from declines in bond yields of 5bps to 10bps across the curve.
Alternatives: The HFRX Global Hedge Fund Index was up 1.5% (+0.7% in USD), with all major strategies delivering positive performance. Convertible arbitrage (+2.5%) and global macro / trend following (+2.2%) strategies performed best.
Manager Comments:
Alphadyne: +3.6%: Outperformance vs. HFRX index driven by positive performance across both directional and relative value interest rate bets.
Eminence: -1.0%: Underperformance vs. ACWI index (+3.0%) driven by markdowns in certain consumer discretionary sector holdings following earnings reports.
Linden: +4.8%: Outperformance vs. HFRX index (+1.5%) driven by generally strong
performance by convertible arbitrage strategies as well as idiosyncratic benefits from
volatility capture coupled with new issuance events.
Sign up to get Bitterroot Capital Insights delivered to your inbox