Assured Capital Partners’ Balanced Growth Fund had another extraordinary year in 2020, despite the coronavirus pandemic, narrowly missing out on surpassing a 40 per cent return for the third time in the fund’s existence.
According to hedge fund database service EurekaHedge, the fund has now returned over 376 per cent since inception as of the end of 2020 and the firm is positive on the outlook for the year ahead, despite the ongoing economic disruption caused by the Covid-19 crisis.
Assured Capital writes: “In early 2021 there’s nearly USD5 trillion sitting on the sidelines at the moment. That’s about a qaurter of the total US Gross Domestic Product on an annual basis (2020: USD20.8 Trillion). Not to mention the government is considering further injection of cash into the economy via additional rounds of stimulus. And when all of this pent-up capital gets unleashed on the market, and the economy at-large, the upshot will likely be staggering.
“Additionally, the Federal Reserve Bank has indicated it intends to maintain a low interest rate policy for the foreseeable future. Presumably keeping bond yields suppressed in the near-term. Forcing more investors to seek positive returns in equities. Also, many companies will see favourable earnings comparisons during much of 2021 relative to last year leading to a large swath of positive earnings beats. And finally, many anticipate there is a level of pent-up demand that will be unleashed in areas like travel, leisure, and retail once mass inoculation is achieved. So while there could be a pullback or two lurking in 2021, and there likely will be, the broader market, in the opinion of our investment team, should finish higher than where it began. The journey to get there, however, may be quite a turbulent pilgrimage that requires masterful navigation. “
