Glenrock Global Partners returned a decent 1.2 percent in March, however the Q1 returns just came up to 0.6 percent. Glenrock’s luck has been down in the past few years, and the annualized return for the last three years is now -4.8 percent. Glenrock is seeing some traction in its short portfolio which has been under-performing in the past and is also up on its Japan portfolio.
GlenRock structure changes
Glenrock has made major changes to its structure, so the fund is now not just a L/S equity fund but can also invest in other strategies. Additionally 26 percent of Glenrock’s assets are now invested through six other hedge funds based in New York, San Francisco and Tokyo. All third party managers are equity focused funds and Glenrock has great confidence in the skills of these investors.
Despite the eye popping gains that were seen in the Japanese portfolio, Glenrock suffered a major detraction with long positions in gold miners which cleared out a big chunk of its profits. As gold declined in the first quarter, Glenrock lost in its positions in a few Canadian gold miners and one South African miner.
With Abenomics now in play, Glenrock is finally getting some action in its long-held positions in Japanese equities. However the reasons Glenrock initiated these holdings were clearly unrelated to the current interplay of inflation and currency devaluation that is being practiced in Japan. Glenrock’s Japanese equity portfolio was picked on the theme of cheap valuations and structural advantages of the companies. Glenrock’s quarterly letter notes that while company executives in Japan are surprised by the soaring share prices, they are not overly optimistic. They understand that foreign investors are still conservative and won’t be too enthusiastic about putting large investments in Japan.
The hedge fund made profits in a Japanese motorcycle maker, an automaker and an airport terminal manager. In US equities, gains poured in from a supermarket chain store, oil and gas company and a defense contractor.