07 Dec Munro Global Growth Fund Monthly Report – November 2018
The Munro Global Growth Fund returned -3.1% for the month of November, comprising a return of -1.7% from equities and -1.5% from currency. The MSCI AC World Index (AUD) meanwhile returned -1.5% (+1.4% from equities and -2.9% from currency).
November was a highly volatile month and was categorised by a significant rotation to defensive sectors and stocks.
In the US, the S&P 500 finished up 1.8% (post a 6.5% intra-month swing) and the NASDAQ finished up 0.3%. Elsewhere, relentless selling pressure abated with Europe STOXX -0.8%, Japanese TOPIX +1.3% and the Hang Seng Index +6.1%.
Outside of equities, moves in fixed income (flattening yield curve, widening credit spreads) and oil (34% fall from recent peak) were also in focus. November was a month littered with market moving events, and while each outcome passed with a somewhat benign result, market rallies were nonetheless primarily sold.
Unfortunately, in this highly volatile but sideways market, hedging tools become somewhat redundant and actually detracted value for the month as we attempted to protect further downside.
Elsewhere net equity exposure has been locked at around 50% since early October helping to reduce losses, however the remaining long positions remained under pressure with two sizable underperformers Blue Prism and Activision Blizzard.