As always, thanks for your continued support and trust in allowing us to provide you with your investment management solution.
Wild Start to 2016
The Standard & Poor’s 500 Index declined over 10 percent in the first six weeks of the year. However, the index still managed to end the quarter slightly positive. This was the biggest quarterly turnaround since 1933. Just as we described in our last letter how more trading was moving towards a limited number of securities, we saw this pattern become uncoupled. The momentum strategies finally came unglued and many traders were on the wrong side of bets on volatility.