Unpacking crypto and alternative investing trends – Reetu Kumra

Today, Portfolio Manager and Director of Research Reetu Kumra joins host Pamela Ritchie to give an update on the the Canadian Long/Short Alternative fund and what alternative investing trends she’s keeping an eye on. Reetu talks about the fund’s positioning and describes the four super sectors she keeps an eye on:  interest rate sensitive sectors, resources, consumer, and industrials. She says the Canadian Long/Short Alternative fund aims to generate alpha within the super sectors while being largely neutral across them. Reetu says there is no crypto in the Canadian Long/Short Alternative Fund, crypto is seen as a diversifier. But she does add that research has shown that adding a 1 to 3% slice of Bitcoin to a traditional 60/40 portfolio can increase risk adjusted returns by 12 to 34%. She also talks about the recent rate cuts by the Bank of Canada and how that affects the fund and how the fund leverages Fidelity’s strong research platform and aims to capture Fidelity’s high-quality research by going long on buy-rated names and short on sell-rated names.

 

Recorded on September 25th, 2024.

 

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