REPORTS

Key Information

CAPLAND Alternatives
NAV Date
12/2023
NAV
157.84 USD
Month Performance
0.9 %
Cumulative Performance
57.84 %

Index
NAV Date
12/2023
NAV
133.81 USD
Month Performance
2.15 %
Cumulative Performance
33.81 %

The fund objective is to invest in a short list of hedge funds with proven track records so as to achieve superior medium and long term capital appreciation of the assets under management. The philosophy and methodology include diversification, full transparency of underlying investment holdings, in-depth risk analysis and utilization of professional service providers, in order to create the right conditions and environment for the achievement of the objective.

Performance

Currency:
Time:
CAPLAND Alternatives Index

Monthly Manager Comment

We finished 2023 with a second month in a row at +0.90% bringing the YTD at +1.79% versus 6.50% for the Index. Our Inception to Date is 24% higher versus the same index.
2023 proved challenging for some of our Macro and Multistrategy managers as they were too defensive following their 2022 performance versus the equity and fixed income debacles. We added energy related managers who did not deliver in 2023.

Our conservative tactical positioning in 2023 was too defensive. We added Brevan Howard, East Values, Energy Dynamics and Stratus and exited from Boussard & Gavaudan and System 2. We expect to reduce in Q1 and Q2 the number of managers as higher diversification can erode performance. We will update you accordingly along the way.

We support managers that offer consistency and long-term track records.
11 out of our 21 managers contributed positively to the performance during the year and in December this broadened out to 15.

In 2023, we were right on our geopolitical concerns and that some banks were going to pay the price after one of the speediest and sharpest rises in interest rates in decades. This fallout may not be over as around 40% of US office buildings are vacant or sublet. That said, the reactions to the failure of SVB reminded us once again that the Fed and the US Treasury are always ready to inject capital into the system to keep the show from falling off the stage.

We continue to favor flexibility through our overweight position in Multi-Strategy and Macro managers. As the S&P is flirting with its all-time high, led by the Magnificent Seven and the AI theme. We are positioned to mitigate volatility.

2024 will be dominated by the divisive US elections, the direction of inflation and related interest rate developments. Geopolitical concerns with ramifications for energy markets, energy hungry digitalization demands and a possible redeployment of trillions of cash that sits in short term money market funds once interest rates come down will add to the mix. That said, this will come alongside earnings volatility, recessionary risks and more geopolitical hiccups. Putin may stir up more trouble on Europe’s eastern fronts. Europe’s reckoning is here and any holdback on military spending could be fatal to Europe’s future.

M&A activity should resuscitate and support Risk Arbitrage strategies while Equity Long/Short may continue to do well.

We thank you for your trust and we trust that our managers will continue to deliver in 2024 !