GLO: Likely Unsustainable Yield

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Macrotips Trading
2.08K Followers

Summary

  • The GLO fund invests in global equity and bond securities.
  • The fund is managed by star-manager, Charles Clough, who was formerly a top-ranked strategist at Merrill Lynch.
  • With poor macro calls, the GLO fund has vastly underperformed in 2022.
  • The distribution looks at risk, as it looks unsustainable with poor investment performance.

glass globe and money

PonyWang

The Clough Global Opportunities Fund (NYSE:GLO) relies heavily on its 'star manager' to make differentiated macro calls. Unfortunately, those calls proved to be wrong in 2022, leading to abysmal short-term performance. Although the yield looks attractive at 19.8%, there is a significant risk the

GLO key facts

Figure 1 - GLO key facts (cloughglobal.com)

GLO asset allocation

Figure 2 - GLO asset allocation (GLO September 2022 factsheet)

GLO equity portfolio sector allocation

Figure 3 - GLO equity portfolio sector allocation (GLO September 2022 factsheet)

URTH sector allocation

Figure 4 - URTH sector allocation (ishares.com)

GLO returns

Figure 5 - GLO returns (cloughglobal.com)

GLO vs. URTH

Figure 6 - GLO returns vs. URTH (GLO annual returns from cloughglobal.com and URTH returns from ishares.com)

GLO returns to October 31, 2021

Figure 7 - GLO returns to October 31, 2021 (GLO 2021 annual report)

URTH average annual returns

Figure 8 - URTH average annual returns (ishares.com)

GLO section 1.a report

Figure 9 - GLO section 19.a report (cloughglobal.com)

GLO historical financial highlights

Figure 10 - GLO historical financial highlights (GLO 2021 annual report)

This article was written by

Macrotips Trading profile picture
2.08K Followers
I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting, for one reason or another.Follow me on twitter for my thoughts on macro trends.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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