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The Altrinsic International Equity composite gained 1.0% during the third quarter, outperforming declines of 1.1% and 1.8% by the MSCI EAFE and ACWI ex-US indices, respectively, as measured in US dollars.  International markets actually delivered positive returns, as measured in local currencies, but weakness in non-US currencies versus the US dollar more than offset underlying gains.  Dovish central banks and subdued inflation provided a supportive backdrop for equities, but the weight of tepid growth in profits, weakening economic indicators, high debt levels, and escalating geopolitical

Quarterly Letter

The Altrinsic Global Equity composite gained 2.8% during the third quarter, outperforming the flat and +0.5% returns by the MSCI ACWI and World indices, respectively, as measured in US dollars.  Dovish central banks and subdued inflation provided a supportive backdrop for equities, but the weight of tepid growth in profits, weakening economic indicators, high debt levels, and escalating geopolitical risk (US-China trade war, US politics, Brexit, and developments in the Middle East, to name a few) contributed to volatility that is likely to persist.  Aggregate portfolio risk, measured by bet

The global economy continued to slow during the third quarter, as trade tensions remained high and geopolitical risks escalated.  With limited prospects for a comprehensive trade deal and reacceleration in global trade, emerging market policy makers have been pulling the traditional policy levers to confront stagnating growth.  A moderating inflation outlook lowers the risk of capital outflows and downward currency pressure, allowing central banks to join the synchronized monetary easing well underway in the developed world.  Manageable government deficits have also cleared the way for more

Global stock markets delivered robust gains thus far in 2019, outperforming all other asset classes.  This strength continued during the second quarter as dovish central bank commentary outweighed the preponderance of weak economic data and tariff fatigue.  Key developments during the second quarter included aggressive declines in bond yields, continued yield curve inversion in major markets, rallying equity markets led by US stocks, "growth" continuing to outperform "value," disparate performance among commodities, and reduced pricing of risk as indicated by narrowing CDS spreads in most c

Quarterly Letter

Global stock markets delivered robust gains thus far in 2019, outperforming all other asset classes.  This strength continued during the second quarter as dovish central bank commentary outweighed the preponderance of weak economic data and tariff fatigue.  Key developments during the second quarter included aggressive declines in bond yields, continued yield curve inversion in major markets, rallying equity markets led by US stocks, "growth" continuing to outperform "value," disparate performance among commodities, and reduced pricing of risk as indicated by narrowing CDS spreads in most c

The Perterra Emerging Markets Fund, LP declined 0.8% in the second quarter, compared to the +0.6% return by the MSCI Emerging Market Index in U.S. dollars.  This virtually flat performance of the index came despite the uncertainty caused by the escalating trade war between the U.S. and China, general elections in India and Indonesia, and the passage of a critical social security reform bill pending in Brazil.  This uncertainty exacerbated the fact that the global economy appears to be entering a period of decelerating growth and synchronized policy easing.

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.  Non-U.S.

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.

 

Equity markets rebounded during the first quarter, reacting favorably to U.S Federal Reserve’s shift to more accommodative policies and improving confidence on the U.S.-China trade negotiations.  Central banks turned dovish in response to tightening financial conditions and slowing global growth.  China’s reaccelerated fiscal stimulus and progress on the trade talks alleviated concerns surrounding its economic slowdown.  Emerging market equities reacted favorably, gaining 9.9% in U.S.

The fourth quarter was very difficult for global markets, as prices for most risk asset classes experienced elevated volatility.  Investors in emerging markets were faced with shifting growth and risk dynamics due to several macro factors, including an unclear endgame for the U.S./China trade war, decelerating U.S.

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