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Corion Capital’s David Bacher unpacks asset class and fund performance data for June
Corion Capital’s chief investment officer David Bacher delves into the best and worst performers for the month of June. The Corion Capital monthly asset class and fund performance report is an exemplary high level summary of June’s winners and losers and is a highly recommended read for any level of investor. The Corion report is attached below, for ease of reference, or you can download it here. – Justin Rowe-Roberts
David Bacher on what caught his eye whilst compiling the data:
Although one year in investments is a short period of time, the thing that really astounded me was the PSG Equity Fund, they are the best performing equity fund over one year. And why that astounds me is that it’s not as if I don’t have faith in that house, cause I do, it is the fact that if you reverse the clock and look back twelve months ago, that fund was at the bottom of the rankings or close to the bottom of the rankings. They were invested in South African Inc, smaller caps, value shares a lot earlier than they probably should have been. A lot of their investors didn’t stay the course. I looked at their outflows that they had in the preceding twelve to fifteen months, which was around R600m in outflows in that portfolio. I think it’s a great example of how investors follow short-term performance too much and they don’t stay the course.
On whether it is time to be invested in hedge funds given the lofty valuations across the globe:
I think absolutely. Every investment goes through cycles, we are going through an unprecedented long cycle in quality technology stocks and things turn. People place too much emphasis on recent past and what happened over the last one to three years. It’s a great time for technology and enablers and Covid has had its part to play in that but at the end of the day you are investing in future cash flows and earnings and at a price you are willing to pay for that. Our research seems to suggest that maybe the American market technology is at the top end of their valuations and things like alternatives where you aren’t as exposed to traditional asset classes is the place to be.
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