The parents (markets) are enjoying a tranquil period. The volatility index (VIX) is low, and stocks and bonds both posted positive returns for the quarter. The kids (Democrats and Republicans) are fighting again, but the markets seem to vacillate, from believing stimulus and reform are coming, to believing gridlock is here to stay and the Fed will move slowly to raise rates. The fun-loving neighbor (Chair Yellen) keeps bringing over more appetizers and good wine so why cut cocktail hour short? It was a good quarter for RVP investors as all strategies posted positive returns, and 7 out of 8 strategies outpaced their respective benchmarks. We have changed the format of our letter to make it more readable and informative. As always, the composite returns are at the end.
Read our full Q1 2017 Investor Letter