- Advertisement -

Related

Gramont suffers losses as US technology stocks recover in July

- Advertisement -

Stockholm (HedgeNordic) – The Finnish long/short equity fund, Gramont Equities Opportunities, continued its recent string of losses in July with a net loss of 5.3 percent. This brings year-to-date returns to -20.9 percent, marking the fund´s lowest point since inception. The current drawdown is the longest and deepest experienced by the fund. It currently stands at around 24 percent measured from the peak in June 2016, HedgeNordic data suggest.

Having rebounded in June, the fund again suffered from its short equity exposure and thematic strategy in July. Short positions in Nasdaq 100 futures and a basket of momentum technology stocks weighed heavily on the strategy. In July, US tech stocks rebounded strongly from the sell-off in June with the Nasdaq 100 Index progressing 4.1 percent on the month.

All three of the fund´s sub-strategies had a negative contribution during the month. Apart from the thematic strategy which saw losses of 3.6 percent, the single stock and special situations strategies added to losses with negative returns of 1.2 percent and 0.6 percent respectively. The short book had a net negative contribution of 6.2 percent while long positions gained 0.9 percent on the month.

According to the fund managers outlook and portfolio positioning comment, the fund remains positioned with a significant net short exposure in the equity market allocation, where most of the short exposure remains in US technology stocks.

“We believe the risk of a near-term correction seems high given extended equity market valuations, high level of investor complacency which tends to precede negative returns, and the elevated risks around the monetary tightening cycle”, Gramont writes in comment.

Going into August, the fund had a negative net exposure of 80 percent.

 

Picture (c): MR.LIGHTMAN1975 – shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Jonathan Furelid
Jonathan Furelid
Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

Latest Articles

AI Isn’t the Transformation. Your Hedge Fund Operating Model Is.

By Ashish Shrestha, Senior Solutions Consultant at MAIA Technology: Artificial intelligence is moving quickly from experimentation towards implementation across the hedge fund industry. For...

Volt Diversified Alpha Posts Second-Best Month

Volt Diversified Alpha Fund delivered an estimated 5.8 percent gain in August, its second-best monthly performance since launching in early 2017, as its systematic...

The Lifecycle of a Trade: Where Nordic Managers Win or Lose Their Edge

Placing the trade is the easy part, but it is only as good as everything around it. The edge is rarely won at the...

Diversification is Easy to Buy, Hard to Get: The Liquid Alternatives Test

By Luc Dumontier, CIO Global Asset Management, iM Global Partner: Rarely have global portfolios carried such concentrated exposure to a single bet. US equities...

Unlocking a Third Active Lever

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Long-only active management traditionally has two levers for generating excess returns. The first...

Active and Alternative ETFs Gain Ground as Market Splits Between Cost and Value

The ETF market is entering a new phase in which growth is increasingly concentrated at opposite ends of the cost spectrum. While ultra-low-cost passive...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -