US High-Quality Strategy: Some Optimism But A Windy Road Ahead

US equity markets had a lackluster September but saw some signs of recovering on the back of “bad news”, i.e., a cooling down of the economy. In the fallout, the USHQ portfolio sustained relative gains vs the SPY (-5.4% vs -7.1%). Information Technology and Consumer Discretionary were the main source of relative outperformance. The BCA Score was the most profitable on a long/short basis over the past month, propelled by its high weighting toward Safety-type factors.