C8 Bulletin:  Power of Combination with IVI

01 August 2023

One of the big advantages of direct indexing with C8 is the ability to efficiently combine investment approaches on our platform, C8 Studio. A perfect example is the recent launch of a new index by one of our providers, IVI Capital. Their Global Macro strategy demonstrated exceptional performance in 2020 and 2022, during market disruptions caused by Covid and the Russian invasion, in periods when the S&P500 faced challenges. Taking advantage of this negative correlation during times of market stress, they are introducing a new index on C8 Studio, the IVI Global Macro Equity Plus (see chart below).

The negative correlation has kept the largest drawdown in this new index to 5%, despite the volatility of financial markets, with the annual return more than 5 times larger than the downside volatility (Sortino Ratio). Of course, this result has also been driven by the recovery in US stocks after each shock, however global macro positioning has historically provided protection even during longer-term equity declines.

Note that IVI charge no additional fees to add the S&P 500 position, in particular, any performance fee only applies to the Global Macro component. As an alternative, we would be pleased to demonstrate using C8 Studio to create a combination with one of the many excellent equity strategies on our platform.

IVI Global Macro Equity Plus Index

Other posts

Thoughts From The Divide: Regrets

BY JON WEBB
With the Fed in blackout, the market has been left to its own devices to digest this week’s onslaught of economic data. The inflation data was particularly indigestible. CPI numbers came in hotter than expectations, with both Core and Headline higher than forecasts on a YoY basis at 3.8% and 3.2%, respectively: only slightly worse than expected, but worse than expected. The market also had to deal with PPI that was substantially hotter than expected: the month on month came in at 0.6%, double the consensus forecast. Under the surface, goods inflation appeared to once again be rearing its head, accounting for “about two-thirds of the rise in the headline PPI”, courtesy of “a 1.2% surge in goods prices, the biggest increase since August 2023”. (The Houthis are not helping). While the Fed may have taken a temporary vow of silence, Yellen is under no such constraint. Speaking in an interview on Fox, the Treasury secretary said, “I regret saying it, [inflation,] was transitory”, following up with the jab that “I think transitory means a few weeks or months to most people” (how long is a piece of string? To be fair, predicting inflation is, apparently, tricky: “there are clear limitations to how far into the future we can forecast inflation”). Read more →

Trump and Nvidia Today, Tomorrow Brings the Fed

BY TEMATICA
The question about the economy we expect to be put to the Fed Chair Read more →

Multiple Data Points to Go Before a Santa Claus Rally

BY TEMATICA
The Fed's next meeting, updated economic projections, Retail Sales and more Read more →
Back to all posts →