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

February Monthly Report for C8/GreenBlue  Good Governance US Equity L/S Certificate, issued by Cirdan Capital, update.
BY JON WEBB
INNOVATIVE TRADING  I  COST-EFFICIENT  I  FULL CONTROL  I TRULY GLOBAL  I  TRANSPARENT & ETHICAL

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

Please click on the link above to view the February Monthly Report for the ‘C8/GreenBlue  – Good Governance US Equity L/S Certificate’, that we are forwarding on behalf of the issuer, Cirdan Capital.

“The ‘Good Governance’ Certificate dropped 1.3% in February, to leave it down 1.7% in 2021. The prospect of a global economic recovery, on the back of Covid vaccination programmes, continues to lead to sharp sector swings between new and old economy equities. In the last three months that has worked against the performance of the Certificate as we saw a catch-up in our designated ‘less-well-governed’ stocks. However, we keep in mind that good governance is a long-term risk premia, and outperformance should return once the post-Covid reallocation process is complete.

Within sectors themselves there has also been large performance disparities, e.g. in February, just within the long tech positions held in the Certificate, semi-conductor producers and Oracle were the largest outperformers whilst Qualcomm and Apple were among the biggest losers.

The leverage in the certificate is rising (as equity volatility falls) with gross positions rising 40% to 440%, with a net long at 240% and net short at 200%.”

Thanks for reading,

The C8 Team

Other posts

Thoughts From the Divide: The (Golden) Path

BY JON WEBB
While the road to hell is paved with good intentions, it appears that the “golden path” to a soft landing (which by way of reminder is a “triumph of hope over experience”, if you ask Mr. Summers) is paved with rate cuts. In an interview earlier this week, the Chicago Fed president Austan Goolsbee cast another vote in favor of “adjustment cuts”, saying that “You risk the golden path if you are going to be as restrictive as we are now”. Meanwhile, Jerome Powell was quick to assure the audience during his latest interview that “today I am not going to be sending any signals, one way or the other on any particular meeting” as far as rate cuts are concerned. However, that did not prevent the Chair from referring to ol’ reliable of monetary policy, “long and variable lags”, to explain why, “if you wait until inflation gets all the way down to 2%, you’ve probably waited too long”. Read more →

Thoughts From the Divide – Lessons Learned

BY JON WEBB
If the saying is that we’re always fighting the last war, Chair Powell and his Fed comrades appear to be shellshocked. Not so long ago, when asked about where the FOMC’s collective thinking was, Mr Powell went with the rather cumbersome formulation “not thinking about thinking about” rate hikes. This time around, when asked about the various ins and outs of potential rate cuts, Powell said point blank that “the next question… is when it will become appropriate to begin dialing back the amount of policy restraint that’s in place… that’s really the next question, and that’s what people are thinking about and talking about”. Read more →

Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy May 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 →