The Class F Lead Series of the Multi Strategy LP returned 1.31% in January, while the Class F Lead Series of the Long Short LP returned 0.74% over the same time period, both net of fees. The difference between the two is largely reflected by higher relative exposure levels in the Long Short LP, offset by positive performance from credit strategies in the Multi Strategy LP. Beta-adjusted net equity exposure was 79% in the Multi Strategy LP and 69% in the Long Short LP at month-end. Net credit exposure was 44% in the Multi Strategy LP and remained at 0% for our Long Short LP. Beta-adjusted net equity exposure was approximately 26% and 25% higher in each respective fund since December month-end, driven by increases in the Consumer and Industrials sectors. Performance in January was led by attribution from the Industrials, Energy and Communications sectors. The Consumer Non-Cyclical sector detracted from performance, as did equity index hedges. We discuss updates on key attribution drivers in the month of January below.
The Class F Lead Series of the Multi Strategy LP returned 0.32% in December, while the Class F Lead Series of the Long Short LP returned 0.20%, both net of fees. The difference between the two is largely reflected by higher relative exposure levels in the Long Short LP, offset by positive performance from credit strategies in the Multi Strategy LP. Beta-adjusted net equity exposure was 53% in the Multi Strategy LP and 44% in the Long Short LP. Net credit exposure was 48% in the Multi Strategy LP and remained at 0% for our Long Short LP. Beta-adjusted net equity exposure was approximately 11% and 8% lower in each respective fund since November month-end. Exposure increases in the Consumer, Energy and Industrials sectors drove increases in equity exposure month-over-month, while higher deltas on equity index hedges drove reductions to exposure. We will discuss our favourable outlook for these sectors later in the commentary. Net equity exposure was highest in the Technology, Industrials and Consumer sectors at year-end.
The Class F Lead Series of the Multi Strategy LP returned 1.73% in November, while the Class F Lead Series of the Long Short LP returned 1.22%, both net of fees. The difference between the two is largely reflected by higher relative exposure levels in the Long Short LP, offset by positive performance from credit strategies in the Multi Strategy LP. Beta-adjusted net equity exposure was 64% in the Multi Strategy LP and 52% in the Long Short LP. Net credit exposure was 31% in the Multi Strategy LP and remained at 0% for our Long Short LP. Beta-adjusted net equity exposure was approximately 9% and 18% higher in each respective fund since October month-end. The increase in net equity exposure was driven by increases in conviction long positions and lower deltas on equity index put options. Net equity exposure was highest in the Technology, Consumer and Industrial sectors.
After a mid-month downdraft in markets, results from the Q3 reporting slate drove stocks higher for the month overall. S&P 500 Q3 EPS growth is tracking at 8% year-over-year (“YoY”) versus consensus expectations of 6% at the start of earnings season. While positive, the outperformance of S&P 500 EPS growth relative to expectations is at the lowest level over the past four quarters. This fact strikes us as notable, given that consensus expects S&P 500 EPS YoY growth to almost double by Q3 2026 to ~15%. Since the start of the earnings season, the consensus estimate for 2026 EPS has been revised higher by 2% and now sits at ~$308, resulting in a 2026 P/E of 21.9x.