Friday June 12th, 2015
The Fund was positive in May. U.S. stocks grinded higher and the S&P posted new all-time highs. U.S. GDP contracted 0.7% although this was widely attributed to seasonal factors which are expected to reverse later in the year. Job growth remained steady which supported the Fed’s goal of raising rates in Q4.
Healthcare, technology and consumer staples were the best performing sectors with Health Net, 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.
The Fund completed a monthly rebalance, turning over 15 names in the portfolio. This month Centurylink was added to the portfolio, giving the fund exposure to telecommunication services.
The short equities futures hedge decreased to approximately 23% of the Fund’s NAV.
The Fund continued to hedge its USD currency exposure maintaining a net USD exposure at approximately 10% of the Fund’s NAV. This month unhedged long USD exposure was a tailwind as CAD declined 3.5% against the U.S. dollar.