Long/Short Equity, Long Only
Contributor Since 2013
Big River Long Only returned 38 basis points during April bringing YTD to approximately +9%.
Big River Long Short results were (1.05%) bringing YTD to approximately +4%.
The April minutes from the Federal Reserve suggest that the FOMC is charting a course toward September for the next interest rate increase.
While the committee left the door open to an increase in June, the modest language change indicates September is the most probable increase date given the current economic data.
Big River is optimistic with regards to prospects for the US and global economies for the balance of the year.
If the data continues to strengthen as anticipated, Federal Reserve will likely move ahead with 25 basis points in September and then hold to monitor the effects of the rate increase on the US and global economies.
This scenario makes an additional hike possible during December, but it is more likely that subsequent increases will not occur until 2017.
Against the backdrop of a strengthening US and global economy with limited interest rate pressure, Big River is constructive on stock prices for the remainder of 2016.
The view is always subject to change. To quote economist John Maynard Keynes, "When the facts change, I change my mind. What do you do, sir?".