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 – February 2023
What happened during the month?
Quadriga Igneo UCITS is -5,1% in february. Very mixed month where Equities in US saw a huge rally during first couple of weeks to end -2,4% for the month, while European indexes ended positive with Eurostoxx 600 +1,9%. Emeging market equities underpeformed by -7,6% led by Hang Seng -9,41%. Meanwhile bonds retreatred on new inflation fears by -3,27% in 10y and -4,85% on long end (20+ years), this pushed down precious metals significantly with gold -5,28% and silver -12,25%. Market is back to higher for longer interest rates after inflation numbers surprised to the upside both in Europe and America, which drove up inflation expectations for the next 2-5y significantly higher. Some macro numbers came better than expected like PMIs although still in negative territory. We think leading indicators are showing harder landing than the bond or the equity markets are discounting, together with highest ever corporate margins, excesively optimistic EPS expectations, the change in the mindset of Central Banks from two decades of “deflation fear” into “inflation fear”, and the still high valuation of equities when compared to real interest rates, posing a great risk to equity and credit markets going forward.