I had a great few weeks of reviewing Hedge Fund strategies, but today was a highlight for two reasons:  1) Former MBS HF that we had allocated to had this to say,

"Mark: Thank you so much for the vote of confidence.
You invested with us early in 2002 and then that fund grew (both  performance and AUM) nicely. You voted with us really early the second  time around in 2008 and we all smiled! And now we’re all rooting that you will make it three for three."

and 2) AQR essentially validated ALL THREE strategies that we're focused on over a call earlier this afternoon, suggesting that alts play a significant role in roughly 2.5% (!) real return yielding 60/40 portfolios going forward...

Macro:
Tectonic shifts only seem obvious in hindsight... some argue there is already cracks forming in the foundation.  Our short list of CTA's and Macro managers should perform well in market turmoil.

Credit: 
With yields at these levels, and potentially "higher for longer", MBS and CMBS hedge fund strategies are very attractive.  I'm seeing compelling pitches with positive carry (to the tune of 1.5% / month!) in MBS TBAs and IOs.  Tail-risk in select segments of CMBS, in particular, offer robust asymmetric payoffs.  

Equity Market Neutral:
Market shifts and sector cross-currents present Equity Market Neutral managers with fruitful hunting grounds.  Quant MN was our best performer in 2008's GFC.




I'd welcome the opportunity to meet, if hedge funds are of interest and fit for your clients.  I will be in Denver (a.m.) / Boulder (p.m.) on Friday, September 15th.  Please email me or schedule a time here: https://calendar.app.google/C9q7yy2mYmLNQVRb9
at your convience.



Yankee Multi-Manager Fund

Performance Summary

The Fund lost an estimated 1.88% net in August, while the HFRI FoFs Composite Index gained 0.08% and the S&P 500 Index decreased by 1.59%. Year to date, the YMM Fund is up 9.39% versus 3.43% for the HFRI FoFs Composite Index, 18.24% for the S&P 500, and 1.6% for the iShares Lehman Aggregate Bond ETF. Performance was mixed across managers last month, with Event-Driven outperforming. Please see statistical summary for more info.

Click here for the Yankee Multi-Manager Fund, L.P. Aug'23 Statistical Summary:  Multi 2023-08



As always, we welcome your questions and comments.  Thank you for your support! 

Best regards,

Mark P. McGraw, CAIA  |  LinkedIn: linkedin.com/in/mark-mcgraw-caia-7b41755
Yankee Advisers LLC