Dear investor,

The past week saw a number of interesting developments in the macro landscape. We saw significant movements in bond yields, mainly triggered by the downgrade of the US federal debt by Moody’s as well as early signs of a strong season for risk assets. Our models underscore the fertile grounds for risk assets and we are positioning accordingly. A lot of the uncertainty surrounding the Trump tariffs have been eased and both growth, inflation and liquidity measures hint at an almost Goldilocks-like setup.

Simultaneously, we have positioned for a further weakening of the USD, which seems to be the preferred outcome for almost all sides in the ongoing trade negotiations. At the very least, it seems that main Asian counterparts are accepting the weakened USD while it plays directly into the playbook of Scott Bessent. We are also positinoned for a flattening of the Japanese yield curve, which could become a major global macro story in coming weeks.

Finally, our thematic bet on the European digital defense sector is looking very good, especially with the case of the International Criminal Court in the Netherlands having it’s mail accounts suspended. This is yet another force pushing European governments to take back control over their critical digital infrastructure, including hosting and cloud services. We see this thematic as having enormous potential over the coming months and are very well positioned for that.

Overall, we are very pleased with our performance year-to-date. We managed to generate solid returns when the entire market dropped in April and even though markets have catched up during May, we have followed our strategy and held our ground performance-wise. We are hoping for a very strong end to Q2 with a very strong setup to capitalize on the current macro landscape.

If you wish to know more about the fund and the possibilities for you, please book a call through: https://calendar.app.google/vz3t6jjpamLi4w4X9

Kind regards,

Andreas Steno, CIO