InvestNow News – 4th December – Salt Funds Management – Salt Long Short Fund Fact Sheet – November 2020
Article written by Matthew Goodson, Salt Funds Management – 3rd December 2020
November was something of a watershed month for the Fund, with a record performance outcome of +8.31%.
Firstly, stock selection was very strong, with a number of large winners.
Secondly, there was a massive switch in factor performance in markets across the world. Price momentum stocks lagged, while cyclicals and some value stocks caught a powerful bid. This was accompanied by bond yields rising sharply following positive vaccine news. This has seen a moment in time that is a real sweet-spot for markets. The outlook for economic and earnings growth in 2021 is increasingly positive, while central bankers globally are keeping in place unprecedented (and in our view ultimately reckless) levels of monetary easing. That said, we are wary in the short term of extremely extended measures of investor greed.
The third key factor was simply that we had lifted our net length into the low-mid 50% region on a view that markets could potentially move into a sweet-spot in a post-vaccine environment.
Despite this, the Fund still performed positively on the rare down-days. This shows we weren’t simply riding the bull market with excessive net length.
Thank you for your continued support. 2020 has been a challenging and volatile year, so it is immensely pleasing to deliver strong outcomes for those who have stood by the strategy.
Looking forward, the market backdrop appears far more promising for our style than it has in some time.
InvestNow News – 4th December – Salt Funds Management – Salt Long Short Fund Fact Sheet – November 2020
Article written by Matthew Goodson, Salt Funds Management – 3rd December 2020
November was something of a watershed month for the Fund, with a record performance outcome of +8.31%.
Firstly, stock selection was very strong, with a number of large winners.
Secondly, there was a massive switch in factor performance in markets across the world. Price momentum stocks lagged, while cyclicals and some value stocks caught a powerful bid. This was accompanied by bond yields rising sharply following positive vaccine news. This has seen a moment in time that is a real sweet-spot for markets. The outlook for economic and earnings growth in 2021 is increasingly positive, while central bankers globally are keeping in place unprecedented (and in our view ultimately reckless) levels of monetary easing. That said, we are wary in the short term of extremely extended measures of investor greed.
The third key factor was simply that we had lifted our net length into the low-mid 50% region on a view that markets could potentially move into a sweet-spot in a post-vaccine environment.
Despite this, the Fund still performed positively on the rare down-days. This shows we weren’t simply riding the bull market with excessive net length.
Thank you for your continued support. 2020 has been a challenging and volatile year, so it is immensely pleasing to deliver strong outcomes for those who have stood by the strategy.
Looking forward, the market backdrop appears far more promising for our style than it has in some time.
