Vol. September 2023 – Long-Term Capital Fund Factsheet

Following a robust rally for stocks up to July 2023, the last two months offered something of a reality check. MSCI AC World Index fell by -7.1% during this period while MSCI AC Asia ex-Japan declined –10.0%. The higher-for-longer narrative proved to be a bane for both growth (-5.5%) and value stocks (-7.3%) as well as for investment grade (IG) bonds (e.g. LQD –4.7%). The gap between the three styles remains wide YTD, with growth stocks having outperformed value stocks and IG bonds by 18% and 28% respectively in 2023 so far. KLTCF is down –1.75% from negative contributions in the fund’s growth exposure. We trimmed our exposures ahead of Fed Chair Powell indicating that “one more hike won’t make or break the economy…” and it helped performance.