The Series F of the Conservative Alternative Fund returned 0.16% in December, while the Series F of the Long Short Alternative Fund returned 0.14%, both net of fees. The difference between the two is largely reflected by higher relative exposure levels in the Long Short Alternative Fund, offset by positive performance from credit strategies in the Conservative Alternative Fund. Beta-adjusted net equity exposure was 30% in the Conservative Alternative Fund and 50% in the Long Short Alternative Fund. Net credit exposure was 36% in the Conservative Alternative Fund and remained at 0% for our Long Short Alternative Fund. Beta-adjusted net equity exposure was approximately 2% lower in each fund since November month-end. Exposure increases in the Consumer, Energy and Industrials sectors drove increases in equity exposure month-over-month, while higher deltas on equity index hedges drove reductions to exposure. We will discuss our favourable outlook for these sectors later in the commentary. Net equity exposure was highest in the Technology, Industrials and Consumer sectors at year-end.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.