At the end of April, the new corporate governance rankings were issued and applied to the fund. There was a rotation of 47 companies which account for 32% of the AUM within the portfolio, with an ensuing change in the sector allocation. Most notably, the Healthcare sector now accounts for an overweight position, while the overexposure to both Information Technology and Consumer Staples was reduced.

Being underweight the Financials and Energy sectors, which underperformed during the month, added the most significant portion of the alpha in May. The overweight allocation to the Consumer Staples sector proved to be the biggest detractor in terms of relative performance.

As for individual stocks, the fund held some big-name winners including Adobe, Apple and Ebay. Other big winners included Dollar Tree, Fortinet and Estee Lauder. While the fund again missed out on another big gain from Facebook, it also evaded some big-name losses in Coty Inc and Under Armour.

GBI – Good Governance Fund May 2020 monthly report

Other posts

C8 Bulletin: MI2 Joins C8 Studio

BY JON WEBB
The C8 Bulletin is back after a summer break, and we are delighted to announce that Macro Intelligence 2 Partners have added their Macro Alpha index to C8 Studio.  The Macro Alpha strategy is deeply rooted in MI2's macroeconomic insights. These directional strategies encompass a broad range of asset classes. The strategy aims to optimize risk-adjusted returns by dynamically-adjusting portfolios based on changing macroeconomic conditions. Taking three of our Global Macro contributers (including MI2), combining using our proprietary Tactical Asset Allocation, would have produced a 24% annual gain with 11% volatility and, notably, a 40% negative correlation to the S&P over the past two years. Read more →

C8 Weekly Bulletin – Adding Uncorrelated Returns

BY JON WEBB
With equity and bond markets having moved in tandem for the past few years, this week's Bulletin focuses on the potential to add uncorrelated returns to an equity/bond portfolio.   Read more →

A New Approach to Sector Investing

BY SCOTT DOUGLASS
Many advisors that we speak to believe that it is possible to improve client outcomes through tactical management of sector exposure, but developing the right strategy for doing so can be extremely difficult. Please see attached link to a 15-minute webinar where Craig Cmiel, Managing Director of C8 Technologies US, and Chris McHeffey, Head of US product at C8, will introduce a powerful new tool that can potentially enable advisors to deliver better returns, lower risk, or both through tactical management of sector exposures. This scientific approach might be a great addition to your toolkit. Read more →
Back to all posts →