• Mark Beardow

2020 : a real time stress test


2020 provided a real time stress test of the Darling Macro approach.


During 2020, the fund successfully protected investors during the equity market downturn, while also earning attractive risk adjusted total returns.





Compared with Australian equities

  • During the downturn in Q1, when Australian equities dived, the fund outperformed equities by 20%, strongly protecting capital during the downturn.

  • During the recovery in Q2, Q3 and Q4, the fund earned 9.9%, while equities earned 31.9%, offering some participation in the recovery.

  • By year end the fund had gained 7.9% while Australian equities had gained 1.4%.


Compared with Global High Yield

  • During the downturn in Q1, when Global High Yield dived, the fund outperformed high yield by 12%, strongly protecting capital during the downturn.

  • During the recovery in Q2, Q3 and Q4, the fund earned 9.9%, while Global High Yield earned 19%, offering some participation in the recovery.

  • By year end the fund had gained 7.9% while Global High Yield had gained 2.6%.


Compared with Managed Futures

  • During the downturn in Q1, the fund outperformed by managed futures by 2%.

  • During the recovery in Q2, Q3 and Q4, the fund earned 9.9%, while Managed Futures earned 5.8%.

  • By year end the fund had gained 7.9% while Managed Futures had gained 1.7%.





Darling Macro invests in major markets such as short term interest rates, bonds, equities, precious metals, commodities and currencies.


Each asset class respond differently to changes in expectations for economic growth and inflation. Allocating to combinations of these markets may offer unique exposure to a range of environments.


Since the equity market lows in late March, the fund's exposure has been tilted strongly to bonds and short term interest rates, while also holding markets such as Gold, Taiwanese equities and US equities.



Source: Darling Macro. For wholesale investors only.