Market Note
Systematic equity MTD outperformance
March 27th, 2026
Chart Source(s): Goldman Sachs
Headline driven market reversals are taking their toll on investor sentiment and tactical trading strategy PNLs.
The varied performance across sub-strategies, styles, regions and sectors during this stress period highlights the real-time benefits of hedge fund portfolio diversification. Many hedge fund areas, especially Global Macro, are underperforming MTD amid recent crisis-driven market turmoil.
Because shocks (war, pandemic, financial stress) don’t follow predictable patterns, formerly defensive strategies can struggle in fast-moving, headline-driven markets. By contrast, systematic strategies have preserved capital and posted small gains month-to-date, helping offset losses elsewhere.
Global Markets & Economic Data
- US: The 30-year benchmark mortgage rate hit a YTD high of 6.43% in March, stifling mortgage application activity. Weekly jobless claims data held steady.
- Switzerland/UK/Europe: The Swiss Q4 current account balance fell to the smallest in two years mostly driven by the accounting impact of higher gold prices. UK inflation held steady at 3%, driven by clothing and utilities. German producer prices fell for a twelfth consecutive month in Feb.
- Japan/China: Japan’s February inflation rate hit the lowest level since 2022. China’s Q4 current account surplus surged, fueled by a 6% rise in exports to $1.03T, defying US tariffs.
Index Returns Summary
| Asset Class | MTD | YTD |
|---|---|---|
| MSCI World | -6.74% | -3.70% |
| MSCI Asia Pacific | -9.09% | 5.72% |
| MSCI Europe | -11.35% | -3.45% |
| MSCI China | -5.36% | -6.70% |
| Bloomberg Barclays Global Aggregate Index | -3.10% | -1.03% |
| Bloomberg Commodities Index | 10.22% | 21.23% |
| HFRX Global | -2.65% | -0.20% |
| HFRX Macro/CTA | -3.74% | 1.68% |
| HFRX Equity Hedge | -3.93% | -0.83% |
*Index data as of March 20, 2026
Market Spotlight: March Madness!
Trading daily market movements is a challenge under normal circumstances, but the current headline risk driven market has become particularly treacherous.
Chart Source(s): Daily Chartbook
Market Spotlight: UK Rates
The market is now pricing three rate hikes by the BOE before the end of 2026. Higher rates globally has served to deliver losses to some of the most prominent and successful Global Macro hedge funds in the business. What has typically served as a classic flight to quality defensive move (owning government bonds) is currently one of the riskiest and costliest exposures in manager’s portfolio.
Chart Source(s): Koyfin
Market Spotlight: Thoughts on commodities & war
The destruction of civilian and military infrastructure across the Middle East is shocking. The loss of life and displacement is horrific.
Chart Source(s): Daily Shot
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Contact UsDisclaimer: This material has been prepared by MASTERPIECE ADVISORS for informational purposes only and should not be construed as financial advice. Investments in hedge funds are speculative and involve a high degree of risk. This material is confidential and may not be disclosed without the express written approval of MASTERPIECE ADVISORS.