C8/GreenBlue Good Governance US Equity L/S Certificate – October 2021

The ‘Good Governance’ certificate recovered some of last month’s losses in October, rising by 0.7%, as commodity markets stabilised, and in some cases, reversed their recent sharp gains.  High energy prices and post-Covid supply chain issues remain however, but, as we have previously expressed, we believe that the ‘Good Governance’ premia can perform well as these influences diminish over time.
BY JON WEBB

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C8 Currency Compass – The end of the implied USD equity hedge? – May 2025

BY JON WEBB
European investors now own 15% of US stocks, whilst they have reduced EURUSD and GBPUSD hedges over the past 4 years, as any risk aversion from lower US equities has driven EURUSD lower - being underhedged counterbalances US equity returns. However, this did not work last Summer and the USD has been notably weak during the recent equity sell-off (see full discussion overleaf). With this correlation reversed, we note that European investors now find themselves underhedged their US equity exposure. It has been a volatile month for FX however the USD held key levels and recovered from the lows as US trade policy has become more measured.  The longer-term risks remain for USD, as the Administration attempts to rebalance the US economy, whilst positioning is structurally long USD. Read more →

December 16: The Week Ahead

BY TEMATICA
The Fed's monetary policy meeting, November Retail Sales, Nike and Micron earnings Read more →

MI2 Partners – Thoughts From The Divide: Spectacle

BY JON WEBB
Another week into Trump 2.0 and you’d be forgiven for starting to tune out some of the news around the administration. After all, nothing screams kabuki more than touting “yuge” concessions from the Canadian and Mexican governments that were already in the works… Admittedly it’s two birds with one stone (that was going to be thrown anyway) for the US’s neighbors, but it does make it hard to take the threat of tariffs seriously. That being said, while some of the spectacle is certainly theater, like a bullfight it does come with horns as markets and political actors react to the latest news. Read more →
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