Quarterly Letter: Q3 2015

At this point, the return of volatility to the markets is old news. Over the course of this year, we’ve already encountered plenty of market fluctuation across geographies and asset classes. However, what made this quarter of particular interest is that we are beginning to get a clear picture of what might be driving these gyrations. While many believed an impending withdrawal of accommodative monetary policy in the U.S. would be the culprit, it turns out that there may be other factors at play here, namely slowing Chinese growth. Though rumors of deceleration in China have persisted for years now, a number of data points, as well as action from Beijing, made such fears seemingly more tangible this quarter. With clear and potentially grave implications for global growth, it is only natural that volatility would spike as many market participants rapidly change their risk profile. While we believe that this can present opportunities for long term investors, we do believe that it is important to be cognizant of the uncertainties we face.

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