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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.

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.

The MSCI Emerging Markets Index declined 1.1% as tightening monetary conditions in the U.S., the strong U.S. dollar, political uncertainty, escalating trade tensions, rising inflationary worries, and fund outflows weighed on performance.  The Perterra Emerging Markets Fund, L.P.

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.

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