Harbourside Multi Strategy – February 2023 Update

Harbourside Multi Strategy – February 2023 Update

Snapshot
The managed account portfolio returned +1.06% for February vs the benchmark return of -2.40%. It moved to a 100% fully invested position at the start of February and will remain that way during March.

Portfolio Positioning
After a cracking start to 2023 indices reversed through February with both the US and Australia dipping -2.4%.

Australia is still hanging onto its all-time highs set last month, no thanks to BHP which makes up some 11% of the market capitalisation. Interestingly it rejected its January highs that coincided with mid-2021 highs. Clearly a line of strong resistance circa $50 for the Big Australian.

Australia is amid its earnings season. It’s not been on overly negative season on the whole, but reactions from investors have been somewhat more negative mainly due to rising interest rates and growing inflationary pressures.

The S&P 500 sits about 17% below its all-time highs and sits precariously on its 200-day moving average. This average tends to be an important trend indicator for many US fund managers and market commentators. A move below suggests further downside is possible. That said, in the larger scheme, the S&P 500 has really been tracking in a broad sideways range since mid-June 2022. Some could argue that further weakness is just an extension of that range-bound trading. Longer term range bound trading is actually very positive, but some kind of trigger is needed to break it loose.

Core PCE, the Fed’s preferred method of inflation, remains above the Fed Funds Rate so it remains a headwind for equity prices at present.

The Harbourside Multi Strategy portfolio is open to Australian Wholesale Investors with a minimum investment of $250,000.

Private mandates available for investments exceeding $5m.