When the going gets tough, the tough get going.
During the quarter, global markets witnessed some uncertainty and the MSCI ACWI lost 1.2%. With 70% US equity weight reflected in this so-called world index, it's hard to consider it truly global and diversified. That said, our global multi-asset strategy delivered gains of +2.3% resulting in an outperformance of +3.5% for the quarter.
We believe CY25 will be anything but a linear year in terms of market returns. The Trump Uncertainty Factor (TUF) will be at play against the backdrop of rich valuations and a potential for higher inflation. Prudent risk control will matter more over the next few quarters and years than it has over the last few.
Naturally then, we enter CY25 with a tactical hedge along with a few changes to our Top Holdings. Overall, we still own a robust portfolio with our median business earning $50 billion in annual revenues with over 40% gross margins indicating formidable pricing power and 20% returns on equity.
Please read the 4Q24 investor note for more.
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