Polygon Investment Management: Market Commentary
Disclosure

February 21, 2020

Founded in 2002, Polygon celebrated its 18th anniversary this year. Since inception, our primary strategy, Global Growth, has outperformed its benchmark which consists of 70% global equities (the MSCI All Country index) and 30% US bonds (the Barclay Aggregate bond index) by an average of over 2.5% per year.  In 2019, Global Growth gained over 19.4%, net of all fees.

On a risk adjusted basis, our diversified approach, combined with a number of def…
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Economic and Market Update

Having recently spent several days in Washington at International Monetary Fund (IMF) and Bretton Woods Committee meetings, I thought it might be helpful to summarize some of the main insights from the discussions.

Slower growth expected, globally, and in the U.S.:

As a backdrop, the IMF’s forecasts for global growth are skewed to the downside, primarily due to global trade tensions. For the U.S., the IMF is f…
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2018 was a difficult year for global investors, as virtually all asset classes and regions around the world declined. In the US, equities had their worst year in a decade, with the S&P 500 falling by 6.2%, while small cap stocks dropped by 11%. Elsewhere, markets were even more hard hit, with global equities down by 13.8%, reflecting falls in emerging markets of 14.7%, in Japan of 12.6% and in Europe of 14.3%. Nor did other asset classes escape the carnage. In the US, corporate bonds fell…
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I am pleased to be able to report that Polygon celebrated its fifteenth year investing on behalf of clients in 2018. For the year, we achieved an average return of 17.8% in our primary strategy, Global Growth, representing an outperformance of 1.6% against our benchmark of 70% global stocks and 30% US bonds. Since inception in 2003, our Global Growth composite has outperformed its benchmark by an average of almost 35 per year.

Diversification across asset classes and geography continue…
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As we head towards the end of the year, Polygon’s portfolios are up 10-15% year to date—depending on the client’s risk aversion—despite a conservative orientation. Our current asset allocation model is approximately 65% equities, of which half is in the U.S.; the remainder (35%) is roughly 50% short-term bonds and 50% alternatives. We believe that continued caution is warranted, given high stock market valuations (particularly in the U.S.), coupled with heightened geopolitical risk.Continue Reading…