April 2023 NewsLetter
Management comments
April started with the biggest daily loss of -1.57%. The loss was mainly contributed by Tesla (-1.32%) because the portfolio had a big long exposure on the stock. The loss was mainly recovered in two days when short positions on Tesla and technological stocks generated 1.17% daily profit. The second biggest drop started on 13 April when most positions were short. That Thursday the market started a robust rally, so the robot reversed the positions and leveraged them. But on Friday the market ended lower as a barrage of mixed economic data appeared to affirm another Federal Reserve interest rate hike. Despite the last week of April showed good profits, the mid-month losses was not recovered in full.
As to our benchmarks, the strategy under performed them both where HFRI EH Quantitative Directional Index showed -0.48% and Eureka Hedge North America Long Short Equities Hedge Fund Index finished with 0.38% (both indices are from the databases as of May 8, 2023)
Last Month
The best day was 6-Apr with daily returnof 1.17% and 3-Aprwas the worst daywhen dailylosses reached -1.57%.
YTD
This year March is the best month with 2.96%p.m.gross, and April turned out the worst with -0.93% p.m. gross. YTD is positive.
The full Newsletter can be found here: ARQuant Newsletter 2023-04
Warning: Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss. There is no guarantee that these investment strategies will work under all market conditions and each investor should evaluate their ability to invest for a long-term especially during periods of flat market or downturn in the market.