Aperture European Innovation Q3 2023 Manager Commentary
Anis Lahlou, CFA
Chief Investment Officer based in Aperture’s London office
European Equities roundtrip -2.1% this quarter
European equities (as per MSCI Europe Daily Net TR EUR Index) posted a modest loss of -2.1% this quarter, cancelling the small gains of Q2.
The pressure was broad based and was felt across small cap and US equities too. The prominent theme globally this quarter was the surge in US bond yields. The US 10-year yields surged from 3.8% to a notable 4.6% in just three months, with the 30Y hitting post-GFC highs to even touch 5% at the start of October. As a result, the yield curve has steepened rapidly and the 2-10Y Treasury is only 28bps away from being flat, cancelling the inversion we have witnessed in the past 12-18 months.