Over the past week world markets have again provided evidence of the so-called January Effect, with all eight of our benchmark indexes posting healthy gains. You know it’s a good week when the worst performer (the FTSE 100) posted a healthy 1.63% gain. The two best performers rose by more than 4%. The CAC 40, recently downgraded by Standard & Poor’s, thumbed its nose at the rating agency with a 3.91% gain.
The S&P 500, up 4.59% so far this month, is widely reported in the popular press as having its best January since 1987, when the index gained 9.17% over the equivalent timeframe. We certainly hope the 500 doesn’t share the more memorable characteristic of 1987, Black Monday on October 19th of that year, a shocking 21.47% one-day decline within a 33.51% peak-to-trough collapse in 71 market days (August 25th to December 4th).
The adjacent table shows the year-to-date performance of our gang of eight for 2012. The Hang Seng is only fractionally below that stellar S&P gain of 1987. The DAXK (i.e., the DAX ex dividends) is in second place, only fractionally ahead of the SENSEX. Indeed, the S&P 500’s strong performance only rates a sixth place in YTD gains. As the first of the two charts below clearly illustrate, we’re experiencing a worldwide rally off interim lows stretch from late September for the CAC 40, early October for the S&P 500, FTSE 100 and Hang Seng, late November for the Nikkei 225, mid-December for the SENSEX, and early January for the Shanghai Composite.
Choice Equities Fund generated a net return of 29.2% for the 1Q 2021 resulting in annualized returns of 31.7% per year since inception of January 2017. Q1 2021 hedge fund letters, conferences and more Choice Equities Fund, LP Overview Choice Equities Fund (“CEF” or the “Fund”) is an investment partnership that seeks to generate market-beating Read More