Allspring Global Long/Short Equity Fund Q4 2024 Commentary

2025-03-26 09:20:00 ET

Summary

• With a return of -3.20%, the Allspring Global Long/Short Equity Fund underperformed the -1.73% return of the Global Long/Short Equity Blended Index benchmark (50% MSCI World Equal Weighted Index (Net)/50% ICE BofA U.S. 3-Month T-Bill Index) in this down-market quarter.
• The portfolio was hurt significantly by the short beta tilt and an overweight exposure to the equal-weighted global equity market, as the MSCI World Equal Weighted Index (Net) returned -4.66%.
• Global equities paused in Q4 2024, with significant dispersion across market capitalizations and sectors; S&P 500 rose 2.41%, Russell 1000 Growth gained 7.07%.
• Market expectations were mixed post-Trump's 2024 win; concerns over tariffs and a 25-bps rate cut impacted sentiment, with VIX closing at 17.35.

Market review

Global equities paused in the fourth quarter, with the MSCI World Index (Net) delivering a -0.16% return for the period. This quarter saw a large dispersion in returns across market capitalizations, whereby the MSCI World Equal Weighted Index (Net) returned -4.66%. There was also large dispersion among sectors, where strength in information technology and consumer discretionary was largely offset by weakness in materials and health care. For the quarter, the S&P 500 Index ( SP500 , SPX ) rose 2.41%, the Russell 1000 Growth Index gained 7.07%, the Russell 1000 Value Index declined 1.98%, and the Russell 2000 Index ( RTY ) increased 0.33%....

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