Driven by the fear of a global recession due to the COVID-19 pandemic, financial markets are experiencing volatility not seen since 2008 or the great crash of 1987. These are challenging times, and with liquidity evaporating from all corners of the global financial system, survival is paramount. But with great panic and market dislocation comes great opportunity.
I’m pleased to report that XMonetae’s flagship opportunistic investment strategy has prospered through this uncertainty, returning over +20% net of our fees so far this month.
But the month is not over, and the market volatility has not abated. It’s extremely important to maintain a survival mentality, so that we may continue to thrive in the weeks and months ahead. History has shown that investment managers that can weather the most challenging environments will ultimately be the ones left standing.
We expect this illiquidity to present many more opportunities to come, as more sophisticated market participants are forced out of their positions due to cascading risk limits, compounded by investor redemptions.
To everyone involved during this time of uncertainty and volatility, I wish you all the best, in your finances but also in your health. Take care of yourselves and your loved ones. Together, we can weather this threat and come back stronger.