Aperture International Equity - Q4 2023 Manager Commentary
Aperture International Equity Fund: Commentary for Q4 2023
Quarter in review
Investors experienced a remarkable rejuvenation in the fourth quarter after withstanding a gloomy third quarter that was driven by fears of declining consumer demand as the holiday shopping season commenced, weakness in many manufacturing sectors, and inflation indicators that had remained stubbornly elevated. After the dour postering in Q3, the markets’ views towards 2024 are significantly brighter. Central banks once again have our backs as they pivoted away from ‘higher for longer (rates)’ to ‘job’s done (inflation)’, and we can begin to look at the appropriate pace of interest rate reductions. Markets seemingly ceased to worry overnight about the probability of recession amid signs of slacking inflation. They also considered both the benefits of lower rates on risk asset pricing, along with the added conviction of future earnings growth. Needless to say, markets witnessed a remarkable recovery in Q4.