The Strategic Europe Quality Fund returned -1.29% in January. The main detractor to alpha was the Fund’s relative overweight to the Consumer Staples sector. Stock selection for the Energy Sector was also a small drag on return. The Health Care sector was the best performing sector for the Fund, mainly due to strong stock selection.
The top-performing sectors for the benchmark over the period were Energy and Information Technology; while Real Estate, Financials and Consumer Staples were the bottom performing sectors.
For the European strategy, National Express Group and Siemens Healthineers were the best-performing stocks, and SBM Offshore and JDE Peets were the largest detractors.
The Strategic Global Quality Fund returned -5.04% in January. Both sector allocation and stock selection detracted from return. The Fund’s relative overweight to the Consumer Staples sector was one of the main detractors to alpha. Stock selection for the Information Technology sector was also a noteworthy detractor.
The top-performing sectors for the benchmark over the month were the Energy and Health Care sectors; while the Consumer Staples and Industrials Sectors were the bottom performing sectors.
The main detractors to return for the Global Fund were Fidelity National Information Services and JDE Peets; there were no noteworthy contributors over the period.
We are encouraged by the global rollout of vaccine programmes and greater political stability. That said, with the emergence of the new variants of COVID and lockdown restrictions continuing, there is likely to be more volatility ahead. Parts of the market also look expensive; we are reviewing all of the positions to ensure that they remain consistent with our view of the world and provide fundamental upside.
As always, we invite investors and prospective investors, to contact us should they wish to understand our views on the current situation and the positions held in the portfolio. Please do not hesitate to contact us for further information.
+44 1481 742380
The views and statements contained herein are those of Lofoten Asset Management in their capacity as Investment Adviser to the funds as of 15/02/2021 and are based on internal research and modelling. Please click on Disclaimer Page to view full disclaimers.