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CAD September Market Performance
CAD September Market Performance
Noteworthy Developments
Global equities, as measured by the MSCI ACWI Index, posted a strong gain of 2.6% (2.3% in USD), though performance varied significantly across regions. The US Federal Reserve implemented its first interest rate cut of 50 basis points during the month, while the Canadian dollar weakened by 0.2% against the US dollar.
Global Equities
Global equities rose 2.6% with US large-cap stocks (S&P 500) up 2.3%. International developed markets (MSCI EAFE Index) gained 1.1%, but fell slightly in local currencies (-0.2%). Emerging market equities surged by 7.0%, led by a 24.2% jump in Chinese stocks, driven by the announcement of substantial government stimulus measures. Growth stocks (2.8%) and value stocks (2.4%) performed relatively in line with each other. The best-performing sectors were consumer discretionary (7.7%) and communication services (5.6%), powered by explosive rallies in key Chinese stocks like Alibaba and Tencent. On the other hand, the energy (-2.9%) and healthcare (-2.5%) sectors underperformed.
Fixed Income
The ICE BofA Canada Broad Market Index gained 1.8%, benefiting from a sharp drop in interest rates. Canadian government bonds appreciated by 1.5%, while provincial and municipal bonds rose 1.9%. Corporate bonds outperformed, rising 2.1%.
Alternatives
The HFRX Global Hedge Fund Index increased by 1.2%, with most strategies delivering positive returns. Convertible arbitrage and global macro/trendfollowing strategies performed best, both up 2.0%, while merger arbitrage strategies lagged, falling by -0.2%.
Manager Comments
Carrhae: 8.9%
Outperformed the MSCI ACWI Index (2.5%) with gains largely driven by exposure to emerging markets (7.0%) and specific positions in Indian equities, Thai banks, and Korean memory manufacturers.
Eminence: 6.1%
Outperformed both the MSCI World Index (2.0%) and the Russell Mid Cap Index (2.4%), driven by strong idiosyncratic performance from positions that had previously underperformed.
Linden: 3.3%
Outperformed the HFRX Global Index (1.2%), benefiting from narrowing credit spreads and strong results from new convertible bond issuances at favorable terms.
Sid Nadkarni
Chief Investment Officer
Sid joined Bitterroot Capital Advisors in 2019 with more than 16 years’ experience in the investment management business. Before joining Bitterroot, Sid was Senior Portfolio Manager with the Abu Dhabi Investment Authority (UAE’s sovereign wealth fund) and previously held a similar position and title for Shell Asset Management in the Netherlands. Sid began his career as an investment banker with Arthur Andersen in Virginia and then later at Lehman Brothers in New York City.