March finished at -2.46% versus -3.44% for the Index. For the quarter, both the Fund and the Index are broadly flat.

After 33 consecutive positive months, the Fund recorded its first negative month in nearly three years, in what was a sharp risk-off environment. March performance was mainly driven by three hedge funds that experienced double-digit declines, each down slightly over 10%: one Macro, one Multi-Strategy, and one Equity Long/Short strategy. Arguably, these same funds also contributed significantly to the positive performance over the previous 33 months and are already showing signs of recovery in April.

The Macro and Multi-Strategy (Relative Value) funds were impacted by similar exposures, long UK Gilts and short oil, at the time the Iran crisis escalated. From a due diligence perspective, we have been informed that both funds adhered to their risk management frameworks and reduced risk in line with their predefined triggers. One key Equity Long/Short strategy that was affected used the opportunity to cover shorts and increase concentration in its long book, reflecting strong conviction in its holdings. Another core Long/Short manager reduced its net long exposure from 76% to 55%, consistent with its scenario analysis, where even its more cautious outlook justified maintaining a 55% net long position.

The Fund remains diversified across 22 managers, with a balanced allocation across strategies including approximately 31% in Long/Short, 26% in Multi-Strategy, 20% in Relative Value, 18% in Macro Trading, and 4% in Event Driven. As of April 1st, we have introduced a new Event Driven manager of similar size with a strong and consistent track record, which we believe will enhance the portfolio’s ability to capture event-driven opportunities with discipline and efficiency.

Markets were dominated by geopolitics, energy shocks, tariff uncertainty, and renewed pressure on bond yields. Investors rapidly de-risked as inflation expectations re-accelerated due to higher energy prices and supply chain concerns linked to tensions in the Middle East. This triggered a repricing of interest rate expectations, particularly in Europe, where markets shifted from anticipating rate cuts to pricing in further tightening. Global equities experienced increased volatility as growth expectations weakened.

Navigating markets in the current environment requires a discipline of managing constant surprises in these Trumponian and rapidly changing geopolitical times while technological changes are abound. One continuously needs to remind oneself of the bigger picture that current wars are adding the debt piles which continue to grow while populations are aging, a costly outlook. Geopolitical challenges and technological changes go hand in hand. Economic power in a world of digitalization lies with the ownership of materials and transport routes. The Strait of Hormuz is one of those corridors that feeds China, India and Japan with oil. Putin knows this and is glad to see higher oil prices. The UAE’s decision to leave OPEC on May 1st may well spoil the party for Mr Putin as well as Iran, putting the bad regimes back in their box.

What influences our managers’ investment decisions is their in-depth knowledge of particular situations. One example is the private credit sector, some of these credit funds are increasingly unable to meet investor redemption requests in full, in certain cases limiting redemptions to around 5% despite requests reaching up to 20%. This pressure follows recent events, including Blue Owl’s exposure to fraud at First Brands but then also the AI impact on the software investments many private credit strategies hold. Software companies shifted to subscription models with highly visible cash flows, making them attractive candidates for debt financing. However, AI is turning them into businesses with less predictable future cash flows, as it may reduce the number of users within companies and, consequently, their ability to service this debt.

The key point for our investors is that the recent drawdown already appears increasingly contained. As of writing of this report, the Fund is up +2.0% in April, substantially offsetting the decline. This rapid recovery is encouraging and supports our view that the move was more a function of temporary market dislocation than a change in the Fund’s underlying trajectory.

We thank you for your continued trust !