Q2 2024 Client Note

Sent to clients on July 3rd, 2024

NWTM Management Q2 2024 Update

Turbulent Times

Despite the lack of recent volatility being priced into markets, there is no shortage of action in the world. Our YTD returns remain top decile with firm performance materially out-pacing major indices, although we have given some gains back these past few months as a stronger USD amongst other adverse flows has worked against some of our alternative asset exposures. However, the inevitable and egregious deficit spending that both potential administrations highlight as part of their plans should begin to be priced into markets sooner than later. Additionally, cryptos have fallen from their recent highs as the market digests this most recent run and as both the US + German governments sell large amounts of the bitcoin they hold on their balance sheet. This appears to be a short-sighted move on their behalf given much recent discussion around Bitcoin as a strategic reserve asset — bureaucratic decision making is likely to blame with perhaps some ulterior motives. Regardless, the catalysts setting up for our exposures remain abundant and we are looking forward to an exciting remainder of the year.

Our strong and uncorrelated YTD returns underscore the strength of our investment strategies and our commitment to delivering value even in uncertain times. Our hedged positioning continues to provide a buffer against broader market declines, while our focus on high-quality assets ensures we remain well-positioned for the future.

Election Year and Current Thoughts

As we navigate this election year, it’s hard not to draw parallels to the dystopian world depicted in Orwell’s 1984. The rapid advancements in AI and its implications on privacy and control evoke a sense of unease. We remain vigilant in assessing how these political dynamics and technological shifts might impact the market and our portfolios. It’s crucial to stay informed and adaptable as we approach the election, given its potential to significantly influence economic policies and investor sentiment.

The Big Picture

In the grand scheme of things, we are witnessing an era of unprecedented change and challenge. The geopolitical landscape, economic policies, and technological innovations are converging to create a complex and dynamic environment. While our YTD performance has been notable, we remain cautious, and continue to focus on strategic asset allocation and diversification to navigate these turbulent times. Our disciplined approach and forward-thinking strategies position us to capitalize on emerging trends and weather the inevitable storms. We continue to prioritize resilience, adaptability, and long-term growth as we steer through these challenging times. We appreciate your trust and support as we navigate these complexities together.