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C8 GBI September 2020 Monthly Report – Cirdan Capital

Please click on the link above to view the September Monthly Report of the ‘C8/GreenBlue  – Good Governance US Equity L/S Certificate’, that we are forwarding on behalf of the issuer, Cirdan Capital.

“September was a month of two halves, the initial retracement in the S&P 500 was also matched by some further weakness in the Certificate, however the partial rebound in US stocks later in the month favoured the ‘Good Governance’ portfolio, leaving the Certificate up on the month. This leaves the Certificate up 5% since inception. In contrast, the HFRX Equity Hedge Fund Index is down 4% over the same period. The ‘Good Governance’ risk premia shone through during equity weakness in the first half of the year. We saw outperformance again as US stocks lost ground in September.

With weaker stocks in general, the short S&P 500 position acted as a good hedge, generating 450bp of performance. In terms of individual stock performance, UPS continues to be the star performer as their delivery business remains robust. On the negative side, Clorox saw further unwinding from the H1 boom in cleaning products, whilst Apple also weakened post-product announcements (see chart below). For October, the overall risk in the portfolio, is rising again at 186% long and 146% short, with a return to the max 40% long bias.”

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