Performance and market insights - May 2021

Market Insight
June 9, 2021

The Sage Capital portfolios performed consistent with our objectives in May, avoiding exposure to style rotations and broad systematic macro risks. The CC Sage Capital Absolute Return Fund delivered a net return of 0.41%* and the CC Sage Capital Equity Plus Fund delivered a net return of 2.53%*, outperforming their respective benchmarks by 0.41% and 0.19% for the month.

The S&P/ASX200 Accumulation Index finished up 2.34% in May. A big focus of the market was the possibility of higher than expected inflation and the impact on bond yields, so it’s no surprise the strongest performing Sage Groups^ were Gold (+10%) for its inflation hedge attributes and Yield (+6%) which comprises companies that tend to perform well when bond yields are expected rise, such as banks and insurers. In this environment, value outperforms growth, which is what we saw play out during the month. At Sage Capital, we focus on managing the portfolios such that we are not exposed to style rotations and aim to deliver consistent returns driven by stock selection.

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.