The Third Quarter proved difficult both on a relative and absolute basis. Emerging Markets took a terrible hit, including China and especially South Africa.
SA took a hit in conjunction with slowdowns in their economy, political unrest, and particularly the difficult headwind of the further strengthening of an already strong US dollar.
Read MoreThe first quarter was “interesting” with the return of massive volatility. Overall, markets foreign and domestic reacted by wiping out the January gains to finish the quarter slightly underwater.
We have long expected that the prevalence of increasing economic information and reporting combined with the ever-larger computer driven investment funds would result in a mass disarray, and boom, there it is!
Read MoreOverall, foreign markets faired very well in the first quarter. The EAFE International Index ended the first quarter up by 7.4%. The Pendo International Strategy posted a 9.5% gain for the quarter. After years of volatility and taking a back seat to domestic markets, we see (finally) a reversion to the mean, and favorable fundamentals for international markets finally being realized and bearing fruit. We believe this will continue for the foreseeable future.
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