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Quarterly Letter

U.S. Federal Reserve Chairman Powell's shift to more accommodative policies and improving confidence surrounding U.S.-China trade negotiations were the primary drivers of strong first-quarter gains for most asset classes.  As seen in Chart 1, Q1 performance was an abrupt reversal from the fourth quarter swoon.  Global equities, as measured by the MSCI World Index, gained 12.5% as measured in U.S. dollars, led by U.S. equities and, most notably, high-priced "growth" stocks.  The Altrinsic Global Equity Composite gained 10.0% during the quarter.

 

2018 was a challenging environment for all asset classes, but particularly in equities, where negative returns were delivered across nearly all major markets and industries.  We outperformed market benchmarks during the fourth quarter and for the full year, as our intrinsic value discipline kept us out of many significant decliners, especially among banks, highly cyclical businesses, and previously high-flying tech stocks.

Quarterly Letter

2018 was a challenging environment for all asset classes, but particularly in equities, where negative returns were delivered across nearly all major markets and industries.  We outperformed market benchmarks during the fourth quarter and for the full year, as our intrinsic value discipline kept us out of many significant decliners, especially among banks, highly cyclical businesses, and previously high-flying tech stocks.

The Altrinsic International Equity Portfolio delivered a 3.8% return during the third quarter, outperforming the 1.4% gain by the MSCI EAFE Index as measured in U.S. dollars.  Strong equity market gains during the quarter masked a challenging environment characterized by a significant divergence in underlying stocks’ performance.  The dominance by a small group of high-priced and crowded U.S.

Quarterly Letter

The Altrinsic Global Equity portfolio delivered a 5.4% return during the third quarter, outperforming the 5.0% gain by the MSCI World Index as measured in U.S. dollars.  Strong equity market gains during the quarter masked a challenging environment characterized by a significant divergence in underlying stocks’ performance.  The dominance by a small group of high-priced and crowded U.S.

Investment performance was mixed across asset classes during the second quarter against a backdrop of stronger economic growth in the U.S. and China, election uncertainties (particularly in Italy and Mexico), intensifying trade tensions, and central banks' transition away from policy stimulus and quantitative easing (QE) to quantitative tightening (QT).  Energy prices (Brent Crude +14%) and the U.S.

Quarterly Letter

Investment performance was mixed across asset classes during the second quarter against a backdrop of stronger economic growth in the U.S. and China, election uncertainties (particularly in Italy and Mexico), intensifying trade tensions, and central banks' transition away from policy stimulus and quantitative easing (QE) to quantitative tightening (QT).  Energy prices (Brent Crude +14%) and the U.S.

The Altrinsic International Equity Portfolio gained 1.3% during the first quarter, outperforming the 1.5% decline by the MSCI EAFE Index as measured in U.S.

Quarterly Letter

The Altrinsic Global Equity portfolio gained 0.2% during the first quarter, outperforming the 1.3% decline by the MSCI World Index as measured in U.S.

Quarterly Letter

Exclusive

The fear that persisted in the aftermath of the Global Financial Crisis (GFC) has been replaced by complacency and growing excesses in many markets.  It was difficult to lose money in 2017, as 38 of the 39 major asset classes monitored by Deutsche Bank delivered positive returns.  Global equity markets, as measured by the MSCI World Index, climbed in every single month of 2017 and have now delivered a 237% total return since their 2009 lows.2  Stock market valuations have become stretched by historical measures, while interest rates, credit spreads, and volatility hover near all-time lows. 

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