* Since inception of the strategy (annualized).
** Since inception of the strategy May 2009. Fund returns from January 2010.
*** Since inception of the strategy June 2010. Fund returns from November 2010. The Benchmark equals 50% CAD T-Bills / 50% Merrill Lynch High Yield Master II.
Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.
The Markets
Global equity markets retreated in April as investors feared a slowdown in economic growth and a return of Eurozone debt issues. The U.S. Federal Reserve indicated it would not embark on additional stimulus at this time, as the U.S. economy continues to improve, albeit slowly. In Canadian bond markets, government bonds advanced slightly while high grade corporate bonds were flat. The Canadian dollar rose 1% against the U.S. dollar and closed at $1.01 USD.
In Canada, the S&P/TSX Composite Total Return Index (TRI) declined 0.6%. The largest losing sectors were materials (-6.0%), information technology (-3.5%) and telecommunications (-1.1%). The largest winning sectors were health care (5.9%), consumer staples (3.6%) and industrials (2.0%). The S&P/TSX Small Cap TRI fell 3.8%.
In the U.S., the S&P 500 TRI was down 0.7%, the NASDAQ Composite dropped 1.5%, and the Russell 2000 TRI was down 1.5%. The largest losing sectors were financials (-2.4%), information technology (-1.9%) and industrials (-1.1%). The largest winning sectors were telecommunications (5.4%), utilities (1.8%) and consumer discretionary (1.3%).
The MSCI World Index fell 1.1%. The worst performing countries (in USD) were Spain (-13.3%), Finland (-10.1%) and Italy (-8.5%). The best performing countries were Denmark (2.9%), Australia (1.9%) and Israel (1.1%).
The Funds
The Hillsdale Canadian Core Equity Fund, our Canadian large cap long-only strategy, returned -1.0% versus -0.6% for the S&P/TSX Composite TRI. The largest losses came from positions in Goldcorp Inc., Barrick Gold Corp. and Dundee Precious Metals Inc. The largest gains came from positions in Alimentation Couche-Tard Inc., Enbridge Inc. and SXC Health Solutions, Corp.
The Hillsdale Canadian Performance Equity Fund, our Canadian small cap long-only strategy, returned -2.4% versus -3.8% for the S&P/TSX Small Cap TRI. The largest losses came from positions in Major Drilling Group International Inc., Kirkland Lake Gold Inc. and Martinrea International Inc. The largest gains came from positions in TransGlobe Energy Corporation, Aurizon Mines Ltd. and Stella-Jones Inc.
The Hillsdale US Performance Equity Fund, our U.S. small cap long-only strategy, returned -0.9% versus -1.5% for the Russell 2000 TRI. The largest losses came from positions in Big Lots, Inc., WellCare Health Plans, Inc. and VASCO Data Security International, Inc. The largest gains came from positions in Par Pharmaceutical Companies, Inc., Sturm, Ruger & Company and US Airways Group, Inc.
The Hillsdale Canadian Long/Short Equity Fund returned 1.5% versus -0.6% for the S&P/TSX TRI. The long portfolio contributed -0.4%, with the largest losses coming from positions in Horizon North Logistics Inc., Silver Wheaton Corp. and Richmont Mines Inc. The short portfolio contributed 1.9%, with the largest gains coming from positions in Gabriel Resources Ltd., Bonavista Energy Corporation and ARC Resources Ltd. The fund is currently $1.37 long and $0.76 short for a net market exposure of 61%. The portfolio is net long materials, energy and consumer staples, and net short financials.
The Hillsdale Global Long/Short Equity Fund returned -0.4% versus -1.1% for the MSCI World Index. The long portfolio contributed -1.9%, with the largest losses coming from positions in Domtar Corp., Celgene Corporation and Coach, Inc. The short portfolio contributed 1.5%, with the largest gains coming from positions in Ryanair Holdings plc, Bank of America Corporation and Masco Corporation. The fund is currently $1.19 long and $0.72 short for a net market exposure of 46%. The portfolio is net long information technology, health care and energy, and net short industrials and financials.
The Hillsdale Enhanced Income Fund returned 2.1% versus 0.5% for its benchmark. All components contributed positively to returns with the exception of Canadian equities. The Fund is currently allocated 54% to high yielding equities and REITs, 30% to high yield bonds and 16% to inverse ETFs. The Fund is generating yields of 7.5% on bonds, 5.9% on REITs and 5.4% on equities before leverage of 2.0x. Beta to the equity market (TSX) is approximately 0.1.
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1 mo
YTD
5 yr
10 yr
Incept*
-1.0
4.3
-
-
8.8
-0.6
3.8
-
-
11.3
-2.4
8.3
-3.7
6.7
12.4
-3.8
2.0
-1.4
4.6
7.3
-0.9
17.3
1.2
8.3
10.9
-1.5
10.7
1.4
6.2
7.2
1 mo
YTD
5 yr
10 yr
Incept*
1.5
9.6
1.2
4.9
8.1
-0.6
3.8
1.1
7.4
5.4
-0.4
4.5
-0.4
3.4
1.7
-1.1
10.5
-1.2
5.5
2.1
1 mo
YTD
5 yr
10 yr
Incept*
2.1
6.2
-
-
12.1
0.5
3.2
-
-
6.2
* Since inception of the strategy (annualized).
** Since inception of the strategy May 2009. Fund returns from January 2010.
*** Since inception of the strategy June 2010. Fund returns from November 2010. The Benchmark equals 50% CAD T-Bills / 50% Merrill Lynch High Yield Master II.
Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.
The Markets
Global equity markets retreated in April as investors feared a slowdown in economic growth and a return of Eurozone debt issues. The U.S. Federal Reserve indicated it would not embark on additional stimulus at this time, as the U.S. economy continues to improve, albeit slowly. In Canadian bond markets, government bonds advanced slightly while high grade corporate bonds were flat. The Canadian dollar rose 1% against the U.S. dollar and closed at $1.01 USD.
In Canada, the S&P/TSX Composite Total Return Index (TRI) declined 0.6%. The largest losing sectors were materials (-6.0%), information technology (-3.5%) and telecommunications (-1.1%). The largest winning sectors were health care (5.9%), consumer staples (3.6%) and industrials (2.0%). The S&P/TSX Small Cap TRI fell 3.8%.
In the U.S., the S&P 500 TRI was down 0.7%, the NASDAQ Composite dropped 1.5%, and the Russell 2000 TRI was down 1.5%. The largest losing sectors were financials (-2.4%), information technology (-1.9%) and industrials (-1.1%). The largest winning sectors were telecommunications (5.4%), utilities (1.8%) and consumer discretionary (1.3%).
The MSCI World Index fell 1.1%. The worst performing countries (in USD) were Spain (-13.3%), Finland (-10.1%) and Italy (-8.5%). The best performing countries were Denmark (2.9%), Australia (1.9%) and Israel (1.1%).
The Funds
The Hillsdale Canadian Core Equity Fund, our Canadian large cap long-only strategy, returned -1.0% versus -0.6% for the S&P/TSX Composite TRI. The largest losses came from positions in Goldcorp Inc., Barrick Gold Corp. and Dundee Precious Metals Inc. The largest gains came from positions in Alimentation Couche-Tard Inc., Enbridge Inc. and SXC Health Solutions, Corp.
The Hillsdale Canadian Performance Equity Fund, our Canadian small cap long-only strategy, returned -2.4% versus -3.8% for the S&P/TSX Small Cap TRI. The largest losses came from positions in Major Drilling Group International Inc., Kirkland Lake Gold Inc. and Martinrea International Inc. The largest gains came from positions in TransGlobe Energy Corporation, Aurizon Mines Ltd. and Stella-Jones Inc.
The Hillsdale US Performance Equity Fund, our U.S. small cap long-only strategy, returned -0.9% versus -1.5% for the Russell 2000 TRI. The largest losses came from positions in Big Lots, Inc., WellCare Health Plans, Inc. and VASCO Data Security International, Inc. The largest gains came from positions in Par Pharmaceutical Companies, Inc., Sturm, Ruger & Company and US Airways Group, Inc.
The Hillsdale Canadian Long/Short Equity Fund returned 1.5% versus -0.6% for the S&P/TSX TRI. The long portfolio contributed -0.4%, with the largest losses coming from positions in Horizon North Logistics Inc., Silver Wheaton Corp. and Richmont Mines Inc. The short portfolio contributed 1.9%, with the largest gains coming from positions in Gabriel Resources Ltd., Bonavista Energy Corporation and ARC Resources Ltd. The fund is currently $1.37 long and $0.76 short for a net market exposure of 61%. The portfolio is net long materials, energy and consumer staples, and net short financials.
The Hillsdale Global Long/Short Equity Fund returned -0.4% versus -1.1% for the MSCI World Index. The long portfolio contributed -1.9%, with the largest losses coming from positions in Domtar Corp., Celgene Corporation and Coach, Inc. The short portfolio contributed 1.5%, with the largest gains coming from positions in Ryanair Holdings plc, Bank of America Corporation and Masco Corporation. The fund is currently $1.19 long and $0.72 short for a net market exposure of 46%. The portfolio is net long information technology, health care and energy, and net short industrials and financials.
The Hillsdale Enhanced Income Fund returned 2.1% versus 0.5% for its benchmark. All components contributed positively to returns with the exception of Canadian equities. The Fund is currently allocated 54% to high yielding equities and REITs, 30% to high yield bonds and 16% to inverse ETFs. The Fund is generating yields of 7.5% on bonds, 5.9% on REITs and 5.4% on equities before leverage of 2.0x. Beta to the equity market (TSX) is approximately 0.1.