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USD May Market Performance

Global equities rose sharply as the MSCI ACWI Index increased 4.1%

Noteworthy Developments 

Global equities rose sharply as the MSCI ACWI Index increased 4.1% driven by strong corporate earnings coupled with favorable inflation data relative to expectations. 

Global Equities 

Global equities increased 4.1% with developed markets sharply outperforming emerging markets. The S&P 500 was up 4.9% as investors embraced strong corporate earnings and better than expected inflation data. US Treasury yields declined by 18bps during the month as inflation reports were more favorable than anticipated and job market data indicated modest cooling. International developed equities (MSCI EAFE Index) were up 3.9% (2.5% in local currencies) with European equities up more than Japanese equities. European economic data has been better than expected with many countries showing a modest return to growth. Emerging market equities were down -0.5% with gains from Chinese and Taiwan equities (2.4% and 5.5%) offset by losses in Brazilian and Mexican equities (-5.0% and -2.5%). Globally, growth (5.1%) outperformed value stocks (3.0%). Almost all sectors appreciated during the month with technology, utilities, and communications services performing best (8.0%, 7.0%, and 5.7%, respectively) while consumer discretionary and energy sectors performed worst on a relative basis (0.5% and 0.2%, respectively). 

Fixed Income 

The benchmark US-Aggregate Bond index was up 1.7% for the month as interest rates declined. US Treasuries (65% of the benchmark) were up 1.5%, and investment-grade corporate credit (roughly 25% of the index) was up 1.9%. High-yield bonds were up 1.1% and benefitted from high coupon income and declines in interest rates. Leveraged loans were up 0.9%, with performance driven by high coupon income (stable base rates).


The HFRX Global Hedge Fund Index was up 0.6% with most strategies delivering positive performance. Long-short equity and convertible-arbitrage strategies performed best (1.3% and 0.9%, respectively). Merger arbitrage and global macro / trend following strategies performed worst (-0.7% and -0.5%, respectively).

Manager Comments

Alphadyne: 1.9%

Outperformance vs. HFRX index (+0.6%) and global macro strategy index (-0.7%) due to a combination of payoffs on directional interest rate trades coupled with positive performance from relative value trades as well.

Carlson: -0.9%

Underperformed HFRX index (0.6%) but performed in line with merger arbitrage strategies (-0.7%). Merger spreads widened during the month due to perceived increased regulatory scrutiny (especially in the US with the FTC and DOJ lengthening times for review).

Russell 1000 Growth ETF: 6.0%

Outperformance vs. MSCI ACWI Index (4.0%) driven by higher exposure to US stocks and especially within the technology and communication services sectors. Larger exposure to Nvidia (26.9%) was a key performance.

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