Friday June 12th, 2015
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The Fund was positive in May with gains coming from all three asset classes.
In equities, U.S. stocks grinded higher and the S&P posted new all-time highs. Healthcare, information technology and consumer staples were the best performing sectors, with Healthnet, Triumph Group and Cigna the most profitable names. Energy and materials sectors underperformed, with Freeport-McMoRan, Oil States International and QEP Resources the largest laggards.
Currency positions were profitable. Short yen was the best performer as it broke lower driven by rising U.S. yields and extremely accommodative monetary policy from the BOJ. Recent legislation requiring the national pension to hold a greater percentage of foreign bond and equity holdings should be a tailwind into the foreseeable future. Long New Zealand dollar was the worst performer as deflationary pressures increased the probability of multiple rate cuts in the second half of the year.
Commodity positions were positive this month. Short sugar was the best performer as ample supply and a weakening Brazilian real drove prices lower. The worst performer was long soybeans as surplus conditions pressured prices lower.
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