February’s performance of +0.28% compares to index returns at +2.46%. Multi-Strategy, Long-Short and Event Driven were positive contributors with 15 out of 21 strategies in positive territory while Macro-Trading alongside Relative Value strategies have been trading sideways.

February was a positive month for equities with the S&P 500 rising another 5.30%, all that amidst a pretty decent sell-off in bonds with 10-year yields jumping from 3.86% to c. 4.32% as the higher for longer rates scenario is back in the picture. Market participants have pushed out US rate cut expectations to June. Fed Chairman Powell stated he was not looking to cut rates in March as inflation data still looks too sticky with January Core CPI data at +3.90%, still running at c. 2x the Fed’s target of 2.00%.

Branded as Digital Gold, the much-awaited Bitcoin ETF launch drove the price up by c. 46% during February alone, a new Asset Class many US investors may consider familiarizing themselves with. Gold moved up in tandem as a reflection of weak government balance sheets as well as yet more US regional bank failures linked to Commercial Real Estate financing. In the meantime more student loans are being reimbursed by generous Joe. Will constant capital injections become a permanent feature?

US elections battles have already started with Trump and Biden confirmed as nominees. Trump suggests dropping support for Europe in the case of a Russian invasion alongside slapping 60% tariffs on all Chinese goods imported into the US. More actions to make America even Greater…

European Parliamentary elections are coming up first this summer. Populism at the national level, as noted in Holland, will certainly drip into Brussels, a possible shock and something that Putin has long been hoping for. Despite significantly lower European asset valuations, economic uncertainty and lack of direction may well prevail in Europe, especially compared to the US and Asia. However, several areas of unloved government spending will find support, notably focusing on protecting the continent and supporting Ukraine.

The reason why the Fund has been underweight Equity Long-Shorts since late 2021/early 2022 was originally led by the rising cost of capital (on the back of increased inflation risk). We kept our allocation low due to the macro economic uncertainties resulting from higher interest rates and particularly also at the geopolitical level. Within our Equity Long-Shorts, we are mostly long the market neutral Funds which are serving the portfolio very well despite being less directional. Multi-Strategy managers can switch gears rapidly and have been contributing to performances this year, which we believe is the right way to protect investors against a certain change in market sentiment.

We trust our Managers to continue to be agile given the above andwe thank you for your trust !