Chairman's Letter 2021 Yearly Review

January 2022 Chairman's Letter

2021 Yearly Review

As we come to conclude 2021, one takes a moment to ponder and reflect upon the events of the past year. Speaking from a global macro perspective, the year has shown many sides to market forces, as traders, investors and policy makers looked to navigate an environment which saw many vulnerabilities developing over the course of the last twelve months.?

The year started off as one of what many would deem to be of certainty and clarity, as President Joe Biden took the helm of the White House and the world sought some sense of political consistency from Washington DC, with diplomats, economists and investors all looking forward to a sense of direction from the newly appointed President. However, as the year would have it, any sense of direction from Washington DC would be overshadowed by geopolitical events from the rest of the globe.?

With tensions arising out of Ukraine regarding the possible encroachment from Russian forces upon the territory to the dismay of the United States and its NATO allies, as well as unconventional monetary policy announcements from Turkey as President Tayyip Erdo?an’s take on interest rates and inflation seem to have caused disproportionate moves in the Turkish Lira.?

Additionally, energy shortages across the globe from a reluctant Russia unwilling to provide additional gas to Europe, coupled with OPEC+ sticking to its output targets despite agitations from the United States calling on the cartel to release more oil into the market and ongoing talks between global powers and Iran regarding the future of its nuclear proliferation programme.

Furthermore to this, tensions between the United States and the rising power of China in regards to the control of the South China Sea and the sovereignty of Taiwan, complicated and rather tense discussions surrounding Britain's future with the European Union post Brexit, Covid variants and the impact of lockdowns on the global economy, supply chain bottlenecks and disruptions, the continuing conversation around inflation and rising commodity prices, interest rates and whether or not central banks should continue their dovish tone towards monetary policy or instead adopt more hawkish guidance, it can be made abundantly clear that navigating 2021 had proven to be a challenge in itself.?

With all that 2021 had sprung upon the world, our team of portfolio managers and analysts proved themselves exceptionally in containing risk throughout the last twelve months. As such, the Calgi Partners portfolio continues to maintain its historic and long term advantage over the industry standard, outperforming the HFRX by 21.2% ROI over a 4 year period.

In so, as we go into 2022, my office is confident in our exposure to global macro trends and while we look to continue generating alpha for our investor base, I would like to take this moment to wish you a blessed, healthy and happy start to the new year.

Humbly yours,

Harsimrat Singh

Chairman & Chief Executive Officer