Hindsight 2020

Historical analogs for 2020 asset class (and fund) performance are virtually non-existent. The speed by which many asset classes and economic activity deteriorated in the second quarter of 2020 is unprecedented. Value-at-risk models, ours included, were woefully unprepared for such a shock. It is during such Black Swan events that asset managers must be nimble, level-headed, and remain steadfast to their process in the face of fear and uncertainty. And while this might sound like a simple investing tenet, in practice it is much more difficult. This was my number one thought as I repositioned the portfolio, quarantined in my dusty attic, during the dark financial days of March.