In February, County Cork launched the Macro Equity Hedge Program (“Macro” for short).
The Macro program combines diversification with quantitative modeling to achieve stock market like returns over the long-term with much lower volatility. The program has core long-only holdings in futures contracts on: S&P 500 E-minis, 10 year notes, and gold. Additionally, a portion of the program is allocated to a long/short currency “breakout” strategy designed to capture volatility in currency futures to smooth overall program returns and to provide a hedge to tail risk.
The current investment landscape remains complicated and challenging. Central bank expectations are diverging while various political and economic events are creating volatility in virtually all asset classes. Prices are often disconnecting from prevailing fundamental views making investing exponentially more difficult. The Macro program is designed to provide relative stability in tumultuous periods. So far the program is doing exactly that. Since inception in February, the program has demonstrated terrific risk adjusted returns and has not yet had a down month in performance. We expect superior risk adjusted returns to continue and welcome inquiries.