In a year that many will remember for its unprecedented challenges, Cazadero Capital remained steadfast in our mission and adaptability. The world grappled with the tumultuous events of the pandemic, resulting in global economic contractions and fluctuating markets. As civil unrest resonated in the U.S., and the world watched the US presidential race unfold, our team was actively recalibrating strategies, ensuring our clients’ portfolios remained resilient. The agility and fortitude demonstrated by our team and stakeholders alike have reinforced our belief in the collective spirit to overcome adversities.

The world grappled with the burgeoning COVID-19 pandemic, a health crisis of unparalleled proportions. As nations raced against time to contain its spread, global economies reeled under its impact. Economic contractions, job losses, and disruptions became pervasive. Yet, through concerted efforts, central banks and governments globally took proactive measures, providing financial cushions and adapting lending rates.

For investors, 2020 was a roller coaster. Stocks underwent sharp swings, with the S&P 500 Index plummeting by 33.79% in March. However, the resilience of the market was evident as it rebounded, reaching previous highs by August. By year-end, the global stock market returns soared above their historical average: S&P 500 Index had an annual return of 18.40%, MSCI World ex USA Index at 7.59%, and MSCI Emerging Markets Index at 18.31%.

Fixed income markets mirrored these extremities. Return deviations were stark, especially between US corporate bonds and US Treasuries. While global yield curves ended the year generally lower, the Bloomberg Barclays Global Aggregate Bond Index delivered a return of 5.58%.