July 2024 NewsLetter

Management comments

In July, the strategy performed quite well, achieving profits on 13 out of 23 days. However, significant losses on July 11 and July 31 ruined the monthly performance, resulting in a gross loss of -0.3%. On July 11, the market dropped sharply in the morning, negating the previous day’s strong positive movement. However, the strategy recovered within two days, recognised the downward trend and accumulated a 1.68% gross profit before the last day of the month. On July 31, the market closed sharply higher following better than expected Meta’s Q2 earnings and dovish comments from Jerome Powell that Fed could cut rates in September. As a result, that day the strategy closed short positions at a loss.

The strategy underperformed the EurekaHedge North America Long Short Equities Hedge Fund Index, which reported a positive return of 3.42% (as of 06/08/2024). However, the strategy continues to deliver significantly better the year-to-date performance compared to the benchmark.

Last Month

The 15th July stood out as the most lucrative, with a daily return of 1.68% gross. Conversely, the 31st  July was marked as the least favourable, recording a daily loss of -1.95%. Both days an average gross exposure was around 50%.

YTD

January recorded the highest gross monthly return at 5.68%, while June was the worst with a negative return of  -0.65%.

The full Newsletter can be found here: ARQuant Newsletter 2024-07