A brief review of markets performance and the key performance contributors to the Darling Macro Fund
November
Narratives that fit stories to prices fulfill our human desire to be correct but are really simplistic extrapolations. In the end there was no “blue wave”, Biden won and Trump contested the result.
The news that vaccine trials were more successful than many expected spurred equities globally, which had their strongest month for 20 years. The news especially boosted those sectors suffering the most from the outbreak of Covid-19. Volatility amongst stocks rose sharply and will have caught out many. Bond yields didn’t rise as much as might have been expected, which likely also helped equities. Precious metals fell despite a weaker US$. Oil was the star performer.
Markets and the Darling Macro Fund are plotted in order of their returns year to date.
Year to date
The best performing markets are an interesting mix of defensive assets which performed well in Q1 (US Treasuries), precious metals which performed well in Q2 and Q3 as the US$ weakened and interest rates were reduced (gold and silver), industrial metals as China rebounded (Copper) and finally technology related stocks in Q2-Q4 (Taiwan, S&P500).
Markets and the Darling Macro Fund are plotted in order of their returns year to date.
Performance contributions to Darling Macro Fund
Positive contributions from bonds and precious metals offset to a lesser degree by equities
The fund generated strong returns from :
- Large allocations to defensive assets such as UST 10Y (US 10 year government bonds), Bunds (German government bonds) and Gold, while
- Avoiding some of the large under performers such as WTI Crude (Oil) and European equity markets.
Markets and the Darling Macro Fund are plotted in order of their returns year to date.
Source: Darling Macro. Performance for each market is determined by the performance of the futures contracts referencing each market. For wholesale investors only.
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