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With markets volatility at historical high, and equity markets slipping into bear territory, we wanted to give you some highlights from us and from our selected funds’ managers.
H20 Adagio Fund – Global macro strategy
The fund has been hurt since the beginning of the year and more specifically over the last few days. Amongst other things the spread widening between the Bund and the Italian government bonds, the short duration exposure to the US curve and the rise of the CHF and JPY have all been the main detractors. As always, when there is a sudden rise in volatility, the portfolio tends to be subject to drawdowns. But as a value manager, Bruno Crastes view this period as opening to a great set of opportunities.
Lord Abbett US High Yield Fund – Fixed income US High Yield
US High Yield spread widened sharply on Monday March 9th. It is the third highest widening in bps of the history, the two previous record being in September 21st, 2001, the first dealing day post 9/11, and in October 10th, 2008. Whatever the 12 months forward return will be, we strongly suggest in this highly volatile context and increasing differentiating environment to invest in active management.
Russian Prosperity Fund –Â Equity Russia
The portfolio manager team is reviewing the current oil price shock amidst a pandemic fears from the point of view of an investor in the Russian equity market.
We will keep you updated.
Best regards,
The WSP Analyst Team