Q4 2022 / Strategy Update

2022 was a year beset by challenges, led by the Russia-Ukraine war, global supply chain disruptions, high inflation, rising interest rates across much of the developed world, and pronounced economic weakness in Europe and China. Although the US economy grew at an annual rate of +3.2% in Q3 and is expected to reach +4% growth in Q4, a hawkish Federal Reserve and upward pressure on bond yields led to a significant re-rating of most risk assets.

For investors, outperformance in 2022 depended greatly on active management and the ability to minimize exposure to stocks that suffered most in a difficult environment.

Our positioning generated twice the upside in Q4 2024 and half of the downside for the year, with our Core Strategy falling roughly half as much in 2022 as the S&P 500’s -18.11% loss and the Nasdaq’s staggering -32.5% selloff.