Insights

The US dollar had another positive month in November, with its index against a basket of currencies adding 1.7% to October’s 3.2% gain. The rally was on the back of Donald Trump’s resounding victory in the US presidential election, which spurred bets that his policies will be inflationary.

Gold took the heaviest beating as investors subsequently scaled back expectations of how many times the Fed will cut rates next year. But the jump in Treasury yields did not deter Wall Street amid hopes that the incoming Trump administration will slash the corporate tax rate. Among the major FX pairs, the euro was the biggest loser (-2.8%) on fears that the EU could be hit hard by Trump’s tariffs.

November proved to be a month of mixed market conditions for the IXI Fund, driven by the US elections. In the lead-up to the election, market uncertainty contributed to some adverse conditions for our strategy, while on election day itself the market remained shaky, continuing to challenge our positions. However, once the results were in, the market conditions stabilized, and our strategy quickly rebounded, recovering the losses incurred earlier in the month. By month’s end, we saw continued positive performance, and the strategy closed with additional gains, reflecting the resilience of our systematic approach.