Q1 of 2022 is now officially behind us, and what a wild ride it was. We saw some extreme actions both in the world at large and in the markets during this time which resulted in the fund holding a double-digit drawdown for the first time since 2018. The silver lining to this is that holding the S&P500 over the same period would have resulted in an even larger drawdown
After the first two months of 2022 being in the red for the S&P and with the majority of March looking the same, there was a very real possibility that the world was on the edge of a recession, as measured by three consecutive negative months in the major indices. Thankfully, the month ended up just in the black, increasing global sentiment. For the fund, we were able to take advantage of some of these swings and returned a positive 4.69% for the month.
There is still a way to go before we are back at a new high watermark, and looking back on our past and the modeled data, this doesn't happen overnight, but looking at the Log Data of our returns, there isn't a significant downturn which we haven't seen before.
April looks to be more of the same, with us long the markets in Golden Ratio, though the oscillator we use is flirting with switching over to gold, and the other shorter-term strategies being triggered as and when the set-ups appear. Unfortunately, at this time, the currency strategies we were investigating aren't as robust as we need them to be, so they will not be included for April, though there is some progress being made with an oil proposition which if verified could be added to the fund before the month is out. If so, details will follow.
Moving forward, it has been decided that we will move away from a monthly 'newsletter' to a quarterly one. This is to be more in line with how we report to our clients, the website, and everything else that we do. Of course, if anyone wishes to have an impromptu catch up at any time, our door is always open, and all our investors can see in real-time, their PnL via the app or website portal, but at this time, we feel that aligning everything to a quarterly black makes more sense for us.
If you have any questions or would like to know more about anything mentioned above, feel free to get in contact with us, and we'll happily have a chat with you about it.
Until next time, stay safe, and swing easy.
For more in-depth analysis, everything is on the website for inspection (www.willowoakadvisory.com/ubique)