04 May Munro Global Growth Fund Monthly Report – April 2018
The Munro Global Growth Fund returned 0.0% for the month of April, comprising a return of -0.4% from equities and 0.4% from currency. The MSCI AC World Index (AUD) meanwhile returned 2.6% for the month, with a 1.9% move in equities and 0.7% from currency.
April saw a rotation of market leadership by geography, with the US S&P 500 up a modest 0.4%, while the European STOXX index rose 4.6% and the Japanese TOPIX climbed 3.6%. There was also a rotation by style and sector, with Value outperforming Growth; and Energy significantly outperforming for the month, with the oil price hitting three-year highs.
Relative underperformance for the month was driven predominately by positioning and a strong focus on capital protection post the volatility of March. The Fund is overweight US markets and specifically US technology holdings, which suffered rotation over the month to under-owned parts of global equity markets. Elsewhere the Fund spent heavily on downside protection over the month to minimise a potential drawdown. From a stock specific basis, positive performance was driven by long-term holdings, Thule, Amazon and Kingspan that all reported strong earnings. Negative contributors were several short positions in the European consumer space, such as Hugo Boss and Restaurant Group that both squeezed higher; and Goldman Sachs, the US-listed Investment Bank.
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