C8 GBI Good Governance January 2022 Monthly Report – Cirdan Capital

The ‘Good Governance’ certificate was steadily recovering from January’s sell-off but was hit once again as energy prices spiked following the Russian invasion of Ukraine. The certificate ended down 0.6% on the month.
BY JON WEBB

C8 GBI Good Governance February 2022 Monthly Report – Cirdan Capital

The ‘Good Governance’ certificate was steadily recovering from January’s sell-off but was hit once again as energy prices spiked following the Russian invasion of Ukraine. The certificate ended down 0.6% on the month.

We noted last month, that, both in and out of sample, there is only one equivalent drawdown, in Dec 2010 – Jan 2011, when there was a drop of 12.2%. We also noted that these losses proved only temporary and were fully recovered within 4 months. However, these remain difficult times for an ESG L/S strategy given the risks of the world’s 2nd largest gas and 3rd largest oil producer being excluded from the world energy market.

Importantly however, these ESG-related risks are balanced by many examples since 2007, where the ‘Good Governance’ portfolio of US stocks significantly outperforms during periods of financial market stress, as investment flows seek the safe haven of well-governed stocks. Whilst any long-term premia can have demanding periods, we remain convinced that ‘Good Governance’ will continue to perform over time.

Other posts

NDR Dynamic Allocation Strategy February 2023 Update

BY BRIAN SANBORN
Dynamic Allocation Strategy, indicators, weightings update Read more →

Thoughts From The Divide: Signs of Life

BY JON WEBB
For those of us who regularly follow the “wonksphere” on social media, it’s been hard to ignore the pushback against the doom and gloom that economic sentiment surveys have consistently reported. Commentators like Stancil and Sahm have bitterly complained about the disconnect between the public’s negative perceptions relative to the hard economic data, which is ostensibly pretty good. In this, they have been carrying water for policymakers like Lael Brainard, who have attempted to burnish the Administration’s economic achievements to push back against the negative perception of the economy. The most obvious of those achievements is the decline in inflation – see, we told you it was transitory! Read more →

January 18: This Week’s Thematic Reads

BY TEMATICA
If you missed out on this week's signals, we've got you covered Read more →
Back to all posts →