March 2018: Altaica Alpha Strategies Fund: -0.84

Although the volatility came back on the markets our portfolio was able manage this without much damage. There were two situations that made the fund’s result turn into the red. Firstly most strategies performed around zero, with two exceptions, one (very) negative and one positive.

Secondly we felt again the headwind of the weakening USD. Our systems are indicating a turn in the EUR/USD. This is corresponding with the rising interest rates in the USA. The 10 years treasury is near 3%. This is far above the European interest levels. This should help the USD.

The biggest downturn came from our European Long Short Equity manager. In March it lost about 11% of its assets. After two years of stunning performance unfortunately now the fund is losing big two months in a row. This happened before and is part of the deal with this highly aggressive investment strategy.

We are glad that the big losses of February in the CTA strategies are no longer part of the deal. We added a new one on the right moment, just after a drawdown of more than 20% in February. We still have a large allocation to cash and preparing to add new high potential funds to our portfolio.