Dear Alternative Investment Enthusiasts,
It has been a challenging 2022, and so far 2023 hasn’t disappointed those who predicted this will be an “interesting” year. However, exactly for these moments of uncertainty and low visibility we built a diversified “all-weather” portfolio of actively managed strategies / hedge funds aiming for low volatility and steady single digit returns, which don’t correlate with the markets.
2022 was a dismal year for most investments. Most asset classes were down. The Abacorum strategy, once again, returned a nice and steady +6.19%.
Figure 1: Net performance of Abacorum, relative to bonds and HF Index (since inception in 2018)
Source: BFI Consulting
Figure 2: Asset Returns in 2022 (%)
Source: Refinitv Datastream / ECR Research
These volatile times at the beginning of the year also posed a challenge for many hedge funds, who got caught on the “wrong side of the trade”. This resulted in a slightly negative result for Q1 at an estimated -1.96%. The Abacorum strategy has annualized outperformance of the iShares 1-3 Year at +4.14% and the HFRX Absolute Return at +2.04%.
Moving forward, we have decided to keep our original fund name from when we started: “Abacorum”, from Abacus, which is a simple calculating device you might recall from your childhood. Building an “all-weather” portfolio still describes our approach to managing this strategy well, but we felt we wanted to return to our rootes with our original name giving. Furthermore, we updated our presentation to include more information around hedge funds, us and our process.
Don’t forget to tune in to our newest podcast on various ‘new era’ investment topics as well as our group blog.
Sincerely,
Marc Seidel, and your AltAlpha Strategies Team