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PSN Top Guns Q3 2015 - Volatility Reigns Supreme

Nov 30, 2015 Ryan Nauman

While families were finishing their summer vacations and growing accustomed to beautiful summer days, quarterly gains in U.S. equity markets were also becoming habitual for investors.  Just as a summer comes to an end, the third quarter brought an end to the twelve-quarter winning streak for U.S. equities, measured by the Russell 3000 index, which fell 7.25% during the quarter.  Quarter three also reminded investors that investing in stocks can be a volatile game.  The CBOE Volatility Index (VIX), which is used to gauge market volatility, spiked in August to intraday highs (53.29), which haven’t been seen since 2009.  The surprising devaluation of China’s currency heightened concerns that the economic slowdown in China was worse than expected, which proved to be the main catalyst for the market volatility.  

Quarter three of 2015 was not kind to U.S. equity investors.  Large cap growth companies were able to weather the storm better than the other U.S. asset classes.  While the Russell 1000 Growth index was down 5.29%, the Russell 1000 Value index fell 8.40%. Below are some of the managers that make up the Large Cap Growth PSN Top Guns.

  • Polen Capital: Polen Focus Growth (+1.0% for the quarter)
  • Peregrine Cap: Growth Equity (-1.7% for the quarter)
  • Quest Investment: Concentrated Large Cap Growth (-2.3% for the quarter)

Concerns regarding the Eurozone economy, a global decrease in demand for commodities, along the slowdown in China, provided strong headwinds for European stocks.  The MSCI Europe index, which measures the performance of more than ten developed equity markets in Europe, was down 8.66% during the third quarter.  The following strategies made the PSN Top Guns list for the Europe Universe.

  • Vontobel: European Equity (-1.5% for the quarter)
  • Burgundy Asset: Focus European Equity (-1.9% for the quarter)
  • Threadneedle: Pan European Equity Smaller Companies (-4.3% for the quarter)

U.S. fixed income markets were one of the lone bright spots as the Barclays U.S. Aggregate index gained 1.23% during the quarter.  Investors looked for safety due to the turmoil in China, which lead to lower yields and an increase in prices.  The Federal Reserves’ decision to keep the federal funds rate near zero was also a driving force in the fixed income space.  Below are some of the managers that make up the U.S. Fixed Income PSN Top Guns.

  • Pyramis Global: Long U.S. Treasury STRIPS (+8.1% for the quarter)
  • NISA: 15+STRIPS Fixed Income Composite (+7.4% for the quarter)
  • Camden Asset L.P: Long Duration (U.S. Corporate) (+4.1% for the quarter)

The complete list of PSN Top Guns and an overview of the methodology can be located on www.informais.com under the “Resources” tab.  If you do not have a login, you can complete the registration process for complimentary access.  For more details on the methodology behind the PSN Top Guns Rankings, or to purchase PSN Top Guns Reports, contact Ruth Calderon at ruth.calderon@informais.com.

Ryan Nauman
Market Specialist
Informa Investment Solutions
Tel: (800) 789-5323
Ryan.Nauman@informais.com
www.informais.com


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