- Advertisement -
- Advertisement -

Related

Gramont suffers losses as US technology stocks recover in July

Report: Alternative Fixed Income

- 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

Candidates for the Rookie of the Year 2024

Stockholm (HedgeNordic) – One of the first distinctions up for grabs in the early stages of a Nordic hedge fund’s lifecycle is the “Rookie...

Best Start in a Decade for Nordic Hedge Funds

Stockholm (HedgeNordic) – Following its strongest annual performance since 2009, the Nordic hedge fund industry carried its momentum into 2025, recording its best start...

Tidan Capital Boosts Quant Team with Ex-Lynx PM

Stockholm (HedgeNordic) – As Tidan Capital continues its evolution into a multi-strategy hedge fund platform, the Stockholm-based boutique has appointed Anders Holst as Senior...

Veritas Rethinks Emerging Market Exposure: Shift to “Ex-China” Allocations

Emerging market investing has never been a one-size-fits-all approach, and China’s sheer size and role has only added to the complexity. As the world’s second-largest...

Nominations for the 2024 Nordic Hedge Award

Stockholm (HedgeNordic) – HedgeNordic is delighted to announce the nominees for the 2024 Nordic Hedge Award. The annual event aims to distinguish outstanding hedge...

Shipping Equities Rebound in Early 2025

Stockholm (HedgeNordic) – After a difficult second half of 2024, weighed down by geopolitical tensions, weak Chinese demand, and energy sector volatility, shipping equities...

Allocator Interviews

In-Depth: Megatrends

Voices

Request for Proposal

- Advertisement -