December 2024 NewsLetter
Management comments
In December, the U.S. stock market experienced heightened volatility as investors grappled with mixed economic signals. This environment presented favourable opportunities for our strategy, with the uncapped version delivering a +3.3% return and the capped modification achieving +2.04% before fees.
After reviewing the fourth quarter, we have decided to discontinue the 3% capped version due to its lower Sharpe ratio. In rapidly changing market conditions, the uncapped strategy is better equipped to capitalize on opportunities and recover from drawdowns more quickly.
The strategy outperformed the EurekaHedge North America Long Short Equities Hedge Fund Index, which posted a monthly loss of -2.25% (as of January 9, 2025), achieving a year-to-date performance of 18.36% (after fees), significantly exceeding the benchmark’s 13.25%.
Overall, 2024 was a highly successful year for our strategy. We are deeply grateful to our clients for their trust and are pleased to have delivered strong results.
Last Month
On December 18th, the strategy recorded its highest daily return of 2.02% gross. In contrast, December 11th marked the worst day, with an equivalent daily loss of -2.02% before fees.
YTD
January recorded the highest gross monthly return at 5.68%, while October became the lowest with a negative return of -5.98% gross.
The full Newsletter can be found here: ARQuant Newsletter 2024-12
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.