JP Omega US Cross Asset – Monthly Report – October 2021

The portfolio performed well and delivered +9.5% return in October, bringing a YTD return of +22.9%. The performance resulted from 50% equity exposure together with 25% exposure to both real estate and commodities. The allocation was fully leveraged (1.3x), as in September. There was no participation in Fixed Income and the further flattening of the Treasury Yield curve.
BY JON WEBB

Full Report:

JPO Cross Asset Portfolio Monthly Report – October 2021

The portfolio performed well and delivered +9.5% return in October, bringing a
YTD return of +22.9%. The performance resulted from 50% equity exposure
together with 25% exposure to both real estate and commodities. The allocation
was fully leveraged (1.3x), as in September. There was no participation in Fixed
Income and the further flattening of the Treasury Yield curve.

Within equities, the selected S&P500 Health Care and Information Technology
sectors delivered 1.7% and 2.7%, respectively. The Real Estate index recovered
from its consolidation in September and contributed 2.3% to portfolio
performance, while achieving an all-time high around the month end. The US Oil
index continued its rally from September and attributed 2.8% to portfolio
performance.

Commodity exposure was solely to US Oil, with no allocation into Gold which
partly recovered from its decline in prior months. The rally in equity markets
came as investors shook off a number of concerns that had dogged Wall Street in
the prior month, when worries that high inflation, slowing growth and supply
chain logjams would lead to economic stresses for American companies and
consumers.

The index clearly outperformed all benchmarks. In particular the equally weighted
strategy constituent universe, which delivered +5.5%. The S&P500 (TR) delivered
+7.0%, while the less volatile HFRX Macro/CTA index gained +1.1%.

Other posts

C8 Weekly Bulletin: Trend Following

BY ROBERT MINIKIN
Central banks have had to act aggressively to contain inflation expectations - leading to an unwinding of excess global liquidity and divergent responses across asset classes.  A return to "normal" financial markets, with less policy support for asset prices and higher market volatility.  In this context, there is also new investor interest in trend-following strategies that exploit diverging market dynamics. C8 Studio contains both high quality trend-following indices and innovative combination technology. Read more →

NDR Fixed Income Allocation Strategy November 2022 Update

BY BRIAN SANBORN
The NDR Fixed Income Allocation Strategy, Positioning Update Read more →

Thoughts From The Divide: High Times and Happy Endings

BY JON WEBB
“I think it was the right decision, and I think it should send a signal that we, that we’re committed to coming up with a good outcome here” There is no verse in scripture that says “blessed be the dovish, for they shall fatten the sacred bull”. More’s the pity, because it would have been apt. James Macintosh seems to have noticed the same, but framed it slightly differently. Nothing says I love you to asset markets more than Fed rate cuts: the original PCA factor. And to be fair, the admiration appears to be mutual: Powell loves markets and markets love Powell. It’s nice to get positive feedback and it’s not like JP had to drag everyone screaming and kicking. Read more →
Back to all posts →