Q3 Deep Dive
"We are excited for our new class of analysts. This year we are focusing on growing the fund but also improving our analysts' knowledge of finance and investing through educational seminars." George Nickerson, Head of Fund
The Global Investment Group’s Fund reported a positive performance of 1.73% during the last quarter of 2017, bringing the Fund’s year-to-date return to 5.29%. Overall, the global economy is experiencing a relatively steady, synchronised expansion amid low inflation, with low risk of recession. In the U.S. fiscal policy is supportive of growth and hopes for tax-cut legislation represent a potential upside for corporate earnings. However, a shift toward tighter monetary policy may boost market volatility, underscoring the importance of diversification.
During Q4, the S&P500 has continued its growth momentum and it reached an all time high of $2,695. In order to take advantage of this bull market, we started the quarter by liquidating old positions and raising cash for the new analysts to invest in their particular sectors.
The main reason behind the closure of positions was that our analysts felt bearish about their outlook in the medium term. In particular, Dean Foods and Frontier Communications were performing poorly and were negatively contributing to the portfolio, so their positions were closed and the loss from the investments were minimised. On the other hand, investments in Exelon Corp. and Chubb were closed after a good performance in the portfolio to generate cash and opting to cash out off the back of strong Q3 earnings.