Performance and market insights - April 2021

Market Insight
May 18, 2021

The Sage Capital portfolios produced solid returns in April. The CC Sage Capital Absolute Return Fund delivered a net return of 1.72%* and the CC Sage Capital Equity Plus Fund delivered a net return of 4.30%*, outperforming their respective benchmarks by 1.72% and 0.83% for the month.

The S&P/ASX200 Accumulation Index finished up 3.47% in April as easy liquidity conditions and improving economic momentum drove markets. The bond yield rallied a little and the yield curve stopped steepening, so rather than rotation - there was strength right across the market.

Resources were the strongest performing Sage Group^ with stocks ripping higher on the back of strong iron ore and base metal prices. Copper was a real standout for gains along with iron ore. With a little bond relief, Growth rebounded with a broad-based move higher across the space. Yield was also an outperformer. Solid gains across fund managers, banks and insurers helped to drive the Yield group. Not surprisingly in a strong market, the more defensive groups such as REITs, Gold and Defensives were the laggards.

View our monthly reports below for additional commentary around performance, market review, portfolio positioning and outlook.

* Past performance is not indicative of future performance. ^ Sage Capital uses a custom grouping system for long short positions (Defensives, Domestic Cyclicals, Global Cyclicals, Gold, Growth, REITs, Resources and Yield). With a focus on the principal macro earnings drivers for each stock, Sage Groups allow for comparisons to GICS for selecting stocks within a sector.