We favor large caps, overseas markets and energy MLPs


The positive trends that started in September and October persisted through November as fears of the quantitative easing tapering by the U.S. Federal Reserve faded.

November showed continued market strength with strong investment returns across developed equity markets. U.S. small and large cap equities continued their market leadership and international developed markets also showed good gains.

The emerging market recovery paused during November as returns were mostly negative, with the major exception being China. Fixed income markets ended with mostly modest negative returns.

The Covestor Julex Dynamic Focus portfolio maintained a “risk on” signal during November with overweight positions in U.S. large and small cap equities, developed international equities, high dividend stocks and energy MLPs contributed to positive returns.

For December, I continue to be “risk on” and continue to favor U.S. large and small cap equities, international developed markets and energy MLPs.

In emerging markets,I continue to be fully invested. Within the U.S. equity arena, I have maintained dynamic overweights in cyclical sectors and also added new exposure to the technology sector.

Disclaimer:  All investments involve risk and various investment strategies will not always be profitable.  Past performance does not guarantee future results.

Author profile

Henry Ma, Julex Capital Management
Henry Ma, Julex Capital Management
We are Julex Capital Management. Our company offers rule-based total return strategies that strive to deliver consistent returns with low volatility and drawdowns in both bull and bear markets. Our team uses a systematic process that helps to remove human biases and emotion from the investment process. Julex is managed by industry veterans with strong academic backgrounds and practical experience in portfolio management, asset allocation and risk management. Our strategies offered through Covestor are overseen by Julex Founder Dr. Henry Ma, CFA, who uses quantitative techniques to support his investment and risk management decisions. Henry is a former Portfolio Manager at Geode Capital/Fidelity Investments, and the former Director of Quantitative Research at Loomis, Sayles & Co and Fortis Investments.