The November asset class scoreboard paints a nuanced picture of the investment landscape in the wake of the recent election. Concerns about potential political instability or market volatility proved unfounded, as the democratic process unfolded with integrity, allaying previous anxieties. In fact, U.S. equities rallied to new all-time highs, reflecting the market’s confidence in the validity and certainty of the election outcome.
Hedge funds, too, seemed to have regained their footing, delivering a robust +2.29% gain for the month. Their ability to dynamically adjust exposures and navigate the shifting currents proved valuable in the post-election environment. Notably, managed futures strategies also bounced back strongly after a challenging October, advancing +1.82% through their flexible and opportunistic positioning.
Elsewhere, the performance was more mixed. Commodities slid -0.75%, potentially reflecting easing supply chain pressures and moderating demand. World stocks retreated -0.27%, as concerns about global economic growth persisted. Bonds and U.S. real estate, however, saw positive returns of +1.07% and +4.07%, respectively, as investors sought safety and stability amidst the evolving landscape.
These developments underscore the importance of maintaining a diversified portfolio that can adapt to changing market conditions. Strategies like managed futures, with their capacity to capitalize on both bullish and bearish trends, have demonstrated their resilience and potential to enhance risk-adjusted returns, even in the face of political and economic uncertainties.
Past performance is not indicative of future results.
Past performance is not indicative of future results.
Sources: Managed Futures = SocGen CTA Index,
Cash = US T-Bill 13 week coupon equivalent annual rate/12, with YTD the sum of each month’s value,
Bonds = Vanguard Total Bond Market ETF (NYSEARCA:BND),
Hedge Funds = IQ Hedge Multi-Strategy Tracker ETF (NYSEARCA:QAI)
Commodities = iShares S&P GSCI Commodity-Indexed Trust ETF (NYSEARCA:GSG);
Real Estate = iShares U.S. Real Estate ETF (NYSEARCA:IYR);
World Stocks = iShares MSCI ACWI ex-U.S. ETF (NASDAQ:ACWX);
US Stocks = SPDR S&P 500 ETF (NYSEARCA:SPY)
All ETF performance data from Y Charts