Quadriga Igneo UCITS is a daily liquidity strategy focused on:
- Capital preservation.
- High returns during adverse and hostile markets.
- Low/neutral carry* during benign markets.
We meet these objectives throufgh our structural positions in anti-bubble and anti-crisis strategies such as precious metals, US Treasuries and option purchases. It is a discretionary managed strategy that follows disciplined mandate and risk limits that include zero leverage, zero short positions and only buying options. This is combined with top -down macro analysis, bottom-up micro analysis, quantitative, technical and positional analysis, within a disciplined framework for portfolio construction and risk management.
Factsheet Igneo – August 2023
Monthly Factsheets
What happened during the month?
Quadriga Igneo UCITS is +4,45% in August. During August we saw a correction of the previous two month rallies in developed market equities with SPX -1,59% and SXXP -2,51%, emerging markets found a deeper correction (-6,63%) with Chinese Hang Seng leading (-8,23%) due to very weak economic data and high worries coming from the troubled housing market. Stronger than expected macro numbers in the first couple of weeks pushed yields much higher correcting during last week to end +15bps in 10y treasuries (-1bps 2y, +8bps 5y, +21bps 30y), with a clear bear steepening. Higher yields helped precious metals down (gold -1,42%, silver -1,20%), Industrial metals as well corrected (Copper -5,6%, Aluminum -3,26%) with China woes in focus. USD stronger across the board with EUR and CHF down by -1,35%, JPY down by 2,29% and CNH down by 1,8%. China has been the main focus last few months, the imploding housing market, the related defaults in corporate bonds, and the overall high level of indebtedness are worrying investors. While the internal problems in China are very important issues, we think the major problem is that China may not be able to serve as a source of additional demand during the next crisis, as it has been the case since 2009, which could pose significant issues for the upcoming downturn. We continue to add inexpensive protection as the market becomes increasingly complacent.