Kai W. Hong, CFA
Managing Director & Chief Investment Strategist, Bivium Capital

Unlike 2013 which was mostly a straight path upwards, 2014 was characterized by alternating periods of rally and reversal, so much so that the Russell 3000 Index was essentially flat through mid-October.  Strong US economic and company fundamental performance, along with continued central bank accommodation, helped to close the year on a strong performance note.  US equities as represented by the Russell 3000 Index finished with a +12.6% return, the developed market MSCI World ex US Index returned -4.3%, and the MSCI Emerging Markets Index returned -2.2%.  Performance in the fixed income markets was solid with the Barclays US Aggregate Index returning +6.0%.