Dear Investor, Dear Stakeholder,
2023 has just ended with its share of challenges and also its successes and good moments. As we stand at the dawn of the new year, I would like to extend, on behalf of the H2O AM teams, our very best wishes for 2024. I would also like to reflect on the past 12 months with its achievements, of which we can be proud, and a note of necessary caution.
We are proud to see that the Global Macro engine of H2O AM has been preserved, despite all the hurdles in 2023, generating returns well above the objectives of each of our funds. Our flagship fund, H2O MultiBonds FCP (ISIN FR0010930438), closed the year with a performance of 26% (i.e. 20 percentage points above its target, ESTER+3%, which is just over 6%). This performance follows the almost identical one in 2022, albeit in a radically different market context. This success demonstrates the unique expertise of our Global Macro approach, offering professional investors the benefits of diversification and the ability to achieve performance in radically different market momentums – 2 reminders: (i) past performances does not predict future returns, (ii) the investment policy of H2O MultiBonds FCP is based on a very dynamic management that seeks to generate performance in international bond and currency markets with a high risk indicator (6 on a scale of 1 to 7), as shown in the Key Information Document. These results are even more remarkable when compared to the performances of alternative funds published in recent days and to the forecasts of the most renowned Wall Street strategists over the last two years.
Necessary caution ? A caution is the direct consequence of these results. Indeed, two years of such performances should not overshadow the inherent risks of our management style nor our past drawdowns : investing solely based on yesterday’s performance is today’s mistake the price of which will be paid tomorrow. It is therefore crucial that every investor fully understands these elements before subscribing. The Global Macro engine fundamentally differs from the traditional binary investment decisions (buy or sell), and this is what makes it more capable of generating superior performance. However, this should not overshadow the importance of risk consideration nor the necessity of having a time horizon for each investment.
Rest assured that our teams are fully devoted to maintaining our efficient portfolio management engine and you can rely on the resilience of the Asset Management Company, as the last four years have clearly demonstrated, a company that relies on rigorous governance, aligned with high-level standards.
All this does not make us forget the importance of liquidating the side-pocketed funds and the associated matters. On the contrary, it is an additional motivation to resolve these matters.
Excellente nouvelle année !
Loic Guilloux, H2O AM Group CEO
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