Results Optarix US Portfolio May 2020

Resultss of the Optarix US Portfolio for the periods ending 31 May 2020 (USD based, after tax and fees):

Period	Total Return, Annualized
1 year	11.24%
2 years	7.40%
3 years	9.40%

Note: Past results are no guarantee or prediction for future results.

Commentary

Covid-19 continues to impact markets. However, as some countries have started to lift restrictions, it seems that in general the economic impact is moving into the center of the discussion. In the US the rate of unemployment was about 14.7% in May with states such as Nevada reporting up to 28% unemployment. Since the US is heavily relying on consumers, this the high unemployment isn't a good sign.

Equally, the savings rate in the US has increased to about 33% in May. This, too, indicates that people are holding on to their cash. We believe the main factor is probably the high uncertainty about their economic future in light of possibly losing or already having lost their jobs.

We wouldn't be surprised to also see an increase of foreclosures in the real estate market. This in turn would be bad for mortgages and therefore on the banking and finance sector. Already shares of banks appear to be out of favor judging from their stock performance relative to the overall market in May.

The stock market seems to have cooled down in May. The volatility is not as high as it was in March and April. The number of trade signals created by our systems has return to somewhat more normal from their higher levels in February, March and April.

Overall the results for the periods ending 31 May 2020 are quite satisfactory. Our algorithms demonstrated good performance even during times of very high volatility. The mix of positions suggests that it was appropriate for the scenario. Obviously, we will continue to fine-tune those algorithms by considering additional insights we collected over the last few months.

As always, please share your thoughts in the comments. Thank you!