|4 Mar 2014|
QLAB UPDATE FEBRUARY 2014
- February was another example of an emotional reversal versus the previous fear-driven month with developed market equities, US government bonds and commodities all rising with USD weakening
- The absolute return strategies consequently had a strong positive month with both QLAB Asset Allocation and QLAB Dynamic Allocation hitting all-time highs at month-end, helped especially by selective exposure to US healthcare and US consumer discretionary stocks as well as the CHF, NZD, GBP and EUR currency exposure
- The equity relative return strategies increased their lead against their benchmarks thanks to favourable sector positioning, again mostly due to healthcare and consumer discretionary stocks
- The commodity relative return strategy performed well due to general commodity price increases but especially due to selective exposure to coffee.
Whilst March has started on a negative, at the end of February at least, equity risk was stable and the major trends were intact hence the allocations remain similar for the coming month.
- US Equity allocation remains the same with exposure to Industrials, Consumer Discretionary, Healthcare and Financials
- Commodity allocation remains at zero for now, however if recent gains continue then they may return next month
- FX exposure (long against USD) slightly increased with the same positions in CHF, NZD, EUR and GBP
- Fixed Income exposure unchanged with relatively short duration stance in the 2YR Treasury bond
- The dynamic leverage exposure in the Dynamic Allocation strategy increases slightly to the maximum of 300% keeping volatility similar to that of global equities.
Global Equities: Exposure remains the same to Industrials, Healthcare, Consumer Discretionary, Technology and Utilities
US Equities: Financials exited with a new position in Materials and remaining exposure to Industrials, Healthcare, Consumer Discretionary and Technology
European Equities: Consumer discretionary exited with a new position in Utilities and remaining exposure to Industrials, Healthcare, Telecoms and Financials
Commodities: Exposure remains the same to Soya Beans, Cotton, Coffee, Cocoa, Oil, Nat. Gas and Zinc.