HedgeCoVest Composite Models Hold Their Ground in Meltdown

New York (HedgeCo.net) – Thursday saw the overall U.S. stock market get routed as investors fled due to global economic fears and fear the Fed would raise interest rates too soon or too fast. The S&P lost 2.11% and the Nasdaq took a 2.82% hit. The loss by the S&P took the index in to negative territory for the year, down 1.12% on the year.

As a whole, the 15 composite models on the HedgeCoVest platform fared much better than the overall market. A portfolio evenly distributed in all 15 models would have lost 0.30% on Thursday and even after the big down move by the overall market, the YTD return for the portfolio as a whole is still 2.75%.

Of course the five long-only models all lost ground yesterday and the five short-only models gained ground. Of The five long/short models, two gained ground while the other three lost ground.

Model Thursday Return
HedgeCoVest Basic Materials LS 1.24%
HedgeCoVest Technology LS -0.30%
HedgeCoVest Energy and Utilities LS -0.65%
HedgeCoVest REITS LS 0.82%
HedgeCoVest Biotech LS -2.84%
HedgeCoVest Index L -2.84%
HedgeCoVest Industrial L -2.26%
HedgeCoVest Technology L -2.40%
HedgeCoVest Energy and Utilities L -3.56%
HedgeCoVest Biotech L -3.78%
HedgeCoVest Index S 2.43%
HedgeCoVest Basic Materials S 1.95%
HedgeCoVest Financials S 2.38%
HedgeCoVest Industrial S 2.29%
HedgeCoVest Technology S 3.00%
Average -0.30%

As a whole, a portfolio distributed equally in the 15 composite models performed better than the overall market on Tuesday and it would be performing better so far in 2015 as well.

Rick Pendergraft
Research Analyst

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