C8 GBI July 2020 Monthly Report – Cirdan Capital

Please click on the link above to view the July Monthly Report of the ‘C8/GreenBlue  – Good Governance US Equity L/S Certificate’, that we are forwarding on behalf of the issuer, Cirdan Capital.

“The ‘Good Governance’ Certificate continues to perform well, rising by a further 1.4% in July, with the S&P 500 continuing to recover ground from Feb/Mar falls. This took the performance of the Certificate to +5.5% since inception, on the 21 January. The ‘Good Governance’ risk premia has shone through in the past few months, and we note similar outperformance in the backtest during 2008/09 and in other volatile years for US stocks.  Most notable, is the max drawdown of the Certificate of 3½% in March, set against the S&P 500’s 30% fall.

In terms of individual stock performance, UPS rose strongly as earnings came in above already strong expectations, whilst the easing of lockdown is helping consumer durables and clothing with Whirlpool and Hanesbrands performing strongly. On the negative side, Seagate continues to struggle from weak consumer demand for computer storage whilst the recently strong performing healthcare stock, Eli Lilli, gave back some gains (see chart below). For August, the overall risk in the portfolio, whilst relatively low, is starting to rise again at 132% long and 110% short, with a 22% long bias.”

The Certificate can be tracked via the link to the Frankfurt Stock Exchange below:

If you would like further information on the Certificate, please let us know and we will pass your details onto Cirdan Capital.  The Certificate is not available for US Investors but our Good Governance Index can, of course, be traded  directly anywhere, on the C8 platform.