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Issued by 1OAK Capital Limited, authorised and regulated by the Financial Conduct Authority. 1OAK Capital Ltd (1OAK) (Registered in England & Wales Number: 06890293; FCA registration number 501453) provides fund management services for its customers. 1OAK Capital Limited is authorised and regulated by the Financial Conduct Authority. Registered Office of 50 Sloane Avenue London SW3 3DD.

Over the last year our Multi-Manager model portfolio has generated excess returns (i.e. returns above cash) of 8.7% on an annualised basis, with a volatility of 4.5% — a Sharpe ratio of 1.9. We achieved this with very low — 5.6% — correlation to equity markets.

The main driver of these excellent results was the very marked acceleration of performance of the managers that we invest with since the end of Q2 2020, which we attribute to:

  • Increasing divergence between interest rates across the major economies, which has been good for our FX and global macro managers 
  • Volatility picking up from the lows seen in 2019, which has been good for all our managers
  • The much-anticipated reflation trade playing out with steepening yield curves and equity market recovery — good for global macro and CTA
  • A broad commodity rally and forward curves moving to backwardation — good for commodity managers and others using commodity carry trades

We expect these favourable conditions to continue — both for our multi-manager strategy but also for absolute return managers more broadly. Additionally, we see investor interest in these strategies increasing, which is no surprise given the strong performance of the sector and the lack of other diversifying investments for a portfolio.