The Headland Global Diversified Fund returned -1.02% in January, due mainly to an overweight position in bonds.
Bond markets were negative in January as investors sold over concerns of increased government issuance. However although the Fund reduced its exposure over the month, it does remain in the bond market with the major trends of falling interest rates and lower inflation expectations. Losses were also experienced in FX markets, however the Fund benefited from falling commodity prices during January. A short position in crude oil made the largest positive contribution to overall performance, as oil prices fell 20% over the month.
Headland is a systematic Global Macro fund which commenced operations in November 2006, with annualised performance of +7.40% and total return of 16.58% since inception . In 2008 Headland returned a positive 1.75%, following a return of 9.96% in 2007.
