Quarterly Bulletin Q2 - 2024

No FOMO Syndrome Here

More than ever, investor sentiment could play a decisive role in the financial markets over the coming months. Our previous newsletter discussed the economic outlook among U.S. investors regarding a possible economic landing, whose views completely reversed over the past 12 months. Last year, 75% of them feared a hard landing, but now over 75% expect a soft landing. Some even believe that there will be no landing at all.  As a result, investors’ fear of missing out (« FOMO ») on good investment opportunities has created a frenzy that is pushing prudent risk management out of the window. We did not buy into this excessive optimism three months ago, and we stand by this position. Seeing stock markets at all-time highs only reinforces our cautious approach. We are skeptical and prefer to remain positioned with our « all-weather » portfolio while waiting for the inevitable reversal in confidence that could occur at any time.

Our non-directional strategies and all-weather portfolio are well suited to this environment, we believe. And, our results speak for themselves with our arbitrage strategies on track to meet or exceed their return targets year-to-date. We are well positioned to take advantage of the opportunities that we think will inevitably arise over the coming months and quarters and meet the expectations of our investors. for the Amethyst Arbitrage Fund.