Pratte Global Equity Fund: A solid 40.67% Performance Over 12 Months
We are proud to announce a remarkable 40.67% return for the Pratte Global Equity Fund over the past year, from January 31, 2024, to January 31, 2025. This exceptional result highlights the strength and efficiency of our investment approach, which combines advanced quantitative analysis, artificial intelligence, and proactive risk management to generate superior returns for our clients.
A Rigorous and Innovative Approach
At Pratte Gestion de Portefeuilles, we rely on active management and an advanced quantitative approach to seize the best opportunities in the stock market. Our Quant Dynamics methodology is based on sophisticated algorithmic models and artificial intelligence tools that analyze massive volumes of data to anticipate market trends.
Our strategy is built on three fundamental pillars:
✔️ Cutting-edge quantitative approach: By integrating advanced language models (LLM), artificial intelligence, and scenario simulations, we detect emerging trends and opportunities before they are fully priced into the market.
✔️ Optimized portfolio construction: We utilize rigorous factor-based analysis and advanced diversification techniques to optimize capital allocation and maximize risk-adjusted returns.
✔️ Proactive risk management: Through stress testing and continuous market monitoring, we protect our clients' capital while capturing growth opportunities.
A Commitment to Our Clients
This outstanding performance reflects our unwavering commitment to our clients and the trust they place in us. Our mission is clear: to deliver innovative, disciplined, and long-term growth-oriented portfolio management.
To learn more about our fund and track its performance, click here:
Pratte Global Equity Fund
________________________________________
Markets In Brief
Monday
• Dow Jones: +0.38% (44,470.41 points)
• S&P 500:+0.67% (6,066.44 points)
• NASDAQ: +0.98% (19,714.27 points)
• TSX: +0.85% (25,658.86 points)
________________________________________
Impact of Donald Trump’s Tariff Announcements
Donald Trump announced a 25% tariff on imported steel and aluminum into the U.S. This announcement, mainly affecting Canada, did not cause panic in the markets, as investors perceived these measures as a negotiation tactic.
Steel and aluminum stocks surged:
• Cleveland-Cliffs: +17.93%
• Steel Dynamics: +4.86%
• Nucor: +5.58%
• Alcoa: +2.21%
• US Steel: +4.79%
________________________________________
Technology Sector: Semiconductor Rebound
After a period of turbulence due to concerns over the emergence of DeepSeek, a Chinese AI startup, the semiconductor sector saw a strong rebound:
• Nvidia: +2.9%
• Broadcom: +4.5%
• Micron: +3.9%
Tech giants also benefited from improved market sentiment:
• Alphabet: Up
• Amazon: Up
• Microsoft: Up
________________________________________
Inflation Expectations and Fed Policy
Investors remain cautious ahead of upcoming economic data, particularly the Consumer Price Index (CPI) for January, set to be released Wednesday. This figure is crucial in anticipating the Fed’s interest rate trajectory.
The 10-year Treasury yield slightly increased to 4.50%, up from 4.49% on Friday.
________________________________________
Stock Highlights
• McDonald’s: +4.80%, despite a decline in quarterly earnings.
• Lyft: +6.70%, following the announcement of autonomous robotaxis launching in Dallas by 2026.
• BP: +6.66%, supported by an activist investment from Elliott Management.
On the currency market, the Canadian dollar weakened, trading at $USD 0.6982, down from $USD 0.6994 on Friday.
________________________________________
Tuesday
• Dow Jones: +0.28% (44,593.65 points)
• S&P 500:+0.03% (6,068.50 points)
• NASDAQ: -0.36% (19,643.86 points)
• TSX: -0.11% (25,631.83 points)
________________________________________
Investors Await Inflation Data
Investors adopted a wait-and-see approach ahead of the January CPI report, scheduled for Wednesday. This key indicator will influence the Fed’s interest rate decisions, which markets currently see as unlikely to decline before June.
The 10-year Treasury yield climbed to 4.53%, up from 4.50% on Monday.
________________________________________
Trump’s Tariff Policy Impact
The U.S. President signed an executive order to implement 25% tariffs on steel and aluminum imports, effective March 12. The markets reacted positively, seeing the policy as more selective than anticipated.
________________________________________
Technology Sector: Apple Supports the Market
Despite the NASDAQ’s decline, Apple gained +2.2%, following reports of a partnership with Alibaba to develop AI features for iPhone users in China.
________________________________________
Stock Highlights
• Coca-Cola: +4.73%, driven by stronger-than-expected sales, particularly for Coca-Cola Zero.
• DuPont de Nemours: +6.85%, following solid quarterly earnings.
• Marriott: -5.40%, impacted by lower-than-expected Q1 2025 forecasts.
• Phillips 66:+4.72%, after Elliott Management took a stake in the company.
________________________________________
Commodities and Currencies
• Crude Oil: +$USD 1.00 ($USD 73.32/barrel)
• Natural Gas: +$USD 0.08 ($3.52 USD/BTU)
• Gold:—$USD 1.80 ($USD 2,932.60/ounce)
• Copper:—$USD 0.11 ($USD 4.60/pound)
On the currency market, the Canadian dollar rose to $USD 0.6990, up from $USD 0.6982 on Monday.
________________________________________
Wednesday
• Dow Jones: -0.50% (44,368.56 points)
• S&P 500:-0.27% (6,051.97 points)
• NASDAQ: +0.03% (19,649.95 points)
• TSX: -0.27% (25,563.11 points)
________________________________________
Stronger-Than-Expected Inflation Pressures Markets
The January CPI report exceeded expectations, showing a 0.5% monthly increase and a 3% annual rise. This unexpected acceleration pushed 10-year Treasury yields up to 4.66%.
Analysts now anticipate the Fed may delay rate cuts, pressuring banks and consumer sectors.
________________________________________
Technology Sector: Mixed Performance
Mega-cap tech stocks had mixed results:
• Amazon & Alphabet: Declined due to rising interest rates.
• Tesla & Apple: Gained as investors regained confidence.
• Palantir: Surged on strong AI demand projections.
________________________________________
Healthcare & Consumer Sectors Shine
• CVS Health: +14.95%, after better-than-expected earnings.
• Eli Lilly: Gained, driven by optimism for its treatments.
• GM & Ford: Edged higher on potential tariff exemptions.
________________________________________
Stock Highlights
• Biogen: -4.28%, hit by disappointing guidance.
• Chevron: -1.61%, following a workforce reduction plan.
• Spirit Airlines: -20%, after rejecting Frontier Airlines’ merger offer.
________________________________________
Commodities and Currencies
• Crude Oil:—$USD 1.95 ($USD 71.37/barrel)
• Natural Gas: +$USD 0.05 ($3.57 USD/BTU)
• Gold:—$USD 3.90 ($USD 2,928.70/ounce)
• Copper: +$USD 0.11 ($USD 4.70/pound)
The Canadian dollar climbed to $USD 0.6994, up from $USD 0.6990 on Tuesday.
________________________________________
Thursday
• Dow Jones: +0.77% (44,711.43 points)
• S&P 500:+1.04% (6,115.07 points)
• NASDAQ: +1.50% (19,945.64 points)
• TSX: +0.53% (25,698.51 points)
________________________________________
A Resilient Market Amid Economic News
Stock indices ended sharply higher on Thursday, supported by strong gains in the technology sector and a moderate reaction to economic and trade news. The Producer Price Index (PPI) rose 0.4% in January, exceeding expectations, but core inflation remained stable at 0.3%, confirming a moderate easing of inflationary pressures.
The 10-year Treasury yield fell to 4.53%, down from 4.62% the previous day, providing relief to investors after Wednesday’s sharp rise in yields.
________________________________________
Donald Trump Announces Review of Tariff Policies
President Donald Trump signed a memorandum calling for an analysis of trade disparities between the United States and the rest of the world, aiming to implement reciprocal tariffs. However, no specific timeline was provided for these new measures, which tempered market reactions.
________________________________________
Big Tech Stocks Lead the Rally
Technology stocks drove the market higher:
• Nvidia: +3.16%, following Hewlett Packard Enterprise’s announcement on integrating its Blackwell chips.
• Apple: +1.97%.
• Microsoft: +0.37%.
• Alphabet (Google): +1.32%.
• Tesla: +5.77%, despite the State Department reversing a plan to purchase armoured electric vehicles.
________________________________________
Stock Highlights
• Crocs: +23.89%, after stronger-than-expected quarterly earnings.
• Robinhood: +14.11%, boosted by better-than-expected quarterly revenue.
• Reddit: -5.32%, affected by lower-than-expected user growth.
________________________________________
Commodities and Currencies
• Crude Oil:—$USD 0.08 ($USD 71.29/barrel)
• Natural Gas: +$USD 0.06 ($3.63 USD/BTU)
• Gold: +$USD 16.70 ($USD 2,943.40/ounce)
• Copper: +$USD 0.08 ($USD 4.78/pound)
On the currency market, the Canadian dollar rose to $USD 0.7021, up from $USD 0.6994 on Wednesday.
________________________________________
Friday
• Dow Jones: -0.2% (34,500 points)
• S&P 500: Stable (4,450 points)
• NASDAQ: +0.1% (13,700 points)
________________________________________
Impact of Economic News
Markets took a slight pause after a strong week of gains as investors analyzed the latest developments in global trade and inflation.
U.S. retail sales fell by 0.9% in January, a steeper decline than the forecasted -0.2%, suggesting a potential slowdown in consumer spending.
The 10-year Treasury yield dropped more than 6 basis points to 4.459%, a movement that supported growth stocks.
________________________________________
Technology Sector: Apple in the Spotlight
Apple surged 6% this week, driven by several strategic announcements:
• Upcoming launch: A new iPhone SE featuring artificial intelligence capabilities.
• Partnership with Alibaba: Integration of Chinese AI into iPhones for that market.
Other performances in the sector:
• Nvidia: +2.9%
• Broadcom: +4.5%
• Microsoft: +1.8%
________________________________________
Stock Highlights
• GameStop: +7.9%, on rumours of investment in Bitcoin and other cryptocurrencies.
• Moderna: -5.4%, following quarterly losses that exceeded expectations.
• Informatica: -35%, after disappointing quarterly guidance.
________________________________________
Conclusion
Stock indices are on track to end the week in positive territory as investor sentiment improved with greater certainty around President Donald Trump’s tariff plans. Additionally, inflation data was received more favourably than initially expected.
This week, the S&P 500 and the Dow are up 1.5% and 0.9%, respectively. The Nasdaq has gained 2.3%.
According to an Oppenheimer analysis, when the S&P 500 rises 3% or more on February 14, it has historically continued to climb for the rest of the year in 93.8% of cases, with an average gain of 13.7% since 1950.
