FUND MANAGERS LETTER 

The Goldsky global alpha fund was developed to provide an active solution that has investors financial goals at the heart of portfolio construction. The fund has achieved strong, risk-adjusted returns, substantially outperforming its relative benchmark while facilitating a smoother ride with a much lower risk profile enabling investors to achieve their financial objectives.

The fundamental premise on which our investment philosophy is based is that superior long-term results can be achieved by systematically exploiting the judgmental biases and behavioural weaknesses that influence the decisions of many investors. Goldsky uses a combination of quantitative investment models and proprietary sentiment indicators to invest in both in-favour and out-of-favour (overvalued) or (undervalued) stocks in the marketplace at the time of purchase that have the potential for near-term depreciation or appreciation.

 The most valuable insights are derived from the information that is not obvious to the market, and that a well-constructed quantitative process when applied to a broad universe, can add meaningful value to portfolio returns. By creating a unique set of non-traditional alpha factors, we have demonstrated our ability to produce excess returns in a variety of market environments

In this new age, the lines between fundamental and quantitative active management have become increasingly blurred as we embrace new tools and technology. Successful active management incorporates the best elements of both approaches.

While it has become commonplace to marvel at the amount of data our new “Internet of Everything” age is throwing off, it is worth reminding ourselves of the order of magnitude by which the information we can apply to our investment process is growing.