Tactical Global Management Group's GTAA Fund gained a healthy 1.68% in January. However the manager remains cautious, saying that too much risk remains in taking positions at the asset-class level.
Performance was driven by short positions in equities in Japan where the market fell by almost 10% in the month, as well as short exposure to US and Australian stocks. Detracting from the result were a long exposure to UK and Australian bonds which were only partially offset by long exposure to US bonds. On the currency front the manager decided not to participate as data indicated that all currencies are close to being fairly valued.
Looking ahead TGA says thaty it expects European equities will outperform due to a relatively favourable profit outlook and positive valuation.
