C8 GBI Good Governance December 2021 Monthly Report – Certificate up 4.9% in 2021 – Cirdan Capital

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.
BY JON WEBB

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.

Other posts

C8 Weekly Bulletin:  Backing Value over Defensive – NDR’s Smart Sector

BY JON WEBB
January’s 6.2% advance in the US S&P500 index was far from uniform with sector performances stretching from a 15% gain in consumer discretionary to a 2% retreat in utilities. Given the importance of sectoral positioning  - alongside overall market-directional bets - this week we give the opportunity to our index provider, Ned David Research, to outline the big calls from its 'Dan Hagen/ NDR Smart Sector with Catastrophic Stop' strategy. Read more →

Thoughts From The Divide: Particularly Fluid

BY JON WEBB
Now a week out from the Fed making it clear that the squeeze of lower growth isn’t worth the juice of bringing inflation back to (not toward, Jerry!) 2%, Mohamed El-Erian summed up the state of play nicely in a recent article for the FT. The Queens’ College president noted that, “It is not often that you see a reputable central bank revise up its inflation and growth projections and yet strengthen a dovish tilt to its policy stance. Yet that is what happened in Washington last week when the Federal Reserve raised those projections up a notch and yet delivered two consequential signals – a willingness to tolerate higher inflation for longer and an openness to slow the ongoing reduction in its balance sheet.” Read more →

Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy October 2023 Update

BY BRIAN SANBORN
Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy, model and allocations update. Read more →
Back to all posts →