Seeking Singularity - Q3 2020
The third quarter of 2020 was all about global balancing: While a “new normal” has already been established in parts of the world, some countries are still in a state of emergency. With the Covid-pendulum swinging, stock markets have shown solid reactions and continue to rise. The Singularity Index (SI) gained +14.9% and outperformed its benchmark, the MSCI AC World Index (MSCI ACWI), by 6.8%.
This continues the positive performance from the second quarter, which bore the brunt of the economic shutdown: the Singularity Fund posted flat revenue growth and a 20% in earnings growth year-over-year, giving testament to the resilience of the portfolio during such a difficult period. This report also marks the 2 year track record of The Singularity Fund and with this, we have some interesting findings, e.g. that the bulk of the active return came from stock selection (15.9%) while 4.3% was attributable to industry allocation effects.