C8 GBI Good Governance December 2021 Monthly Report – Cirdan Capital

Monthly Commentary

The ‘Good Governance’ certificate closed out the year with a strong month, up 6.3% in December, to leave the certificate up 4.9% in 2021, and 10.7% since inception. Most notable was a rotation away from some of the more speculative (and less well-governed) stocks in the S&P 500 into our Good Governance portfolio, as year-end approached. We believe that concerns about a more aggressive US Fed tightening path ahead may have encouraged this shift.

Looking at the sector performance of the underlying equities, unusually, it was a mixed bag of strong performers, including tech, business outsourcing, auto parts and food stocks, whilst the only underperformers were in tech (correcting from recent highs).

In January, overall positioning is stable, around typical levels, with a L/S of 2.29/1.89.

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