While we would have liked to add a few percentage points to the fund’s return for 2019, but for that we would have had to relax our risk management criteria, and that was not something we were willing to do. In a period of very low interest rates, the search for yield continued to drive a growing number of investors toward equity markets. These markets had a spectacular year, despite fears of an economic slowdown due to trade wars and the ongoing chaos in political and economic management in the United States.
Summer began as if the financial markets would be relatively calm. The recovery in mergers and
acquisitions, which had started in the previous quarter, quickly lost momentum. But the markets
still delivered some surprises, as we know can happen. Air Canada announced its intention to
acquire all the outstanding shares in Air Transat, and bond rates suddenly became highly
volatile in early September. Once again, our diversified positions allowed us to post a positive
return for the quarter. Now let’s take a more detailed look.
Not all accidents on the financial markets are avoidable. There were situations in the last quarter that tested our resilience. But once again, by diversifying the overall portfolio well and focusing on arbitrage opportunities day-in and day-out, we were able to post results that are, at the very least, acceptable.
While we would have liked to add a few percentage points to the fund’s return for 2019, but for
that we would have had to relax our risk management criteria, and that was not something we
were willing to do. In a period of very low interest rates, the search for yield continued to drive
a growing number of investors toward equity markets. These markets had a spectacular year,
despite fears of an economic slowdown due to trade wars and the ongoing chaos in political
and economic management in the United States.
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