The positive result of 2.85% over December 2020 brings the 2020 performance on +6.22%. In this way we outperformed the international equity and bond markets significantly. This with a lower volatility. The fund proved to be an excellent diversifier in a classic portfolio of equities and bonds.
Global Macro was the main contributor to the positive performance. Our Global Macro position was able to recover partly, +9.8%, from the significant losses in the previous months. In the basket Other investments we were amazed by the continuing strong performance of our Crypto Currency positions. However still relatively small positions in the portfolio the impact on the total result was strong. Bitcoin gained in December about 42% and Ethereum 16%. The other strategies performed in a slower pace. Within the CTA / Manged Futures basket there were two funds which performed well, above +4% but also there was one fund loosing about 4% over the last month. There was also a big performance differentiation within our equity investments. The best performing fund returned in December +12.5%. The worst performing position ended flat.
We are very pleased to see that the portfolio changes we implemented during summer this year worked out well. It is strengthening our confidence in the chosen direction. We are excited also by the amazing managers we are talking with as potential new candidates in the portfolio. We strongly believe that a fund of hedge funds is needed in many portfolios in the coming years. This because after the Covid-19 virus is contained by vaccination and the economy will reopen interest rates can make a jump. Bonds are due to overvaluation no longer a defensive element in the portfolio’s and also no longer a risk diversifier. The only diversification are basically Hedge Funds. Equity Markets, Real Estate markets and Bond markets are all highly correlated to each other. The main driver of these markets is the extreme low interest rates.