Please click on the link above to view the March Monthly Report for the ‘C8/GreenBlue Good Governance US Equity L/S Certificate’, that we are forwarding on behalf of the issuer, Cirdan Capital.
‘So, all is revealed… we have been perplexed by the volatility of our ‘Good Governance’ portfolio this year, particularly in March, resulting in weak performance in the Certificate since November. The sharp moves in stocks on the day that the Archegos Capital L/S portfolio was liquidated, resulted in a 3.7% jump in the Certificate, which closed up 5.8% on the month. The strong back-test of our L/S strategy would suggest there are risks in betting against ‘Good Governance’ and so it proved. The Certificate is up 4% this year, and 9.6% since inception.
In terms of individual stocks, there was no standout sector story, with strong performance from Cisco (tech), Cigna (health), Home Depot (consumer) and Smucker (food), and no major under-performers, also consistent with our viewpoint that the Certificate was a beneficiary of the large Archegos’ position unwind.
The jump in volatility in March has resulted in a dialing back in overall leverage for April to long 210/short 170 (from 240/200).’
