Q1 2025 Performance review

In Q1 2025, UGA HF Broad Based Diversified and Broad Based Neutral strategies generated modestly positive performance. Gains were driven by Trading and Relative Value. Credit / Income strategies also contributed positively, while Equity Hedged strategies detracted.

• In Trading, discretionary macro managers experienced gains due to a mix of curve steepeners across G3 countries, receivers in the US and UK, and more tactical trading in Europe, especially during March, when most managers benefitted from the fiscal reform announcements in Germany. Commodities managers contributed notably to returns, driven by European power and US natural gas trading.
• Within Credit / Income, corporate long / short managers benefited from increased market volatility. This was complemented by carry generated from shorter duration income strategies. These gains were slightly offset by reinsurance which detracted due to losses from January’s California wildfires.
• In Relative Value, quant was a standout performer as managers within this cohort were generally profitable amid the recent volatility, whereas fundamental long / short equity managers were more challenged.
• Within Equity Hedged, losses were driven by fundamental managers amid a difficult beta and factor backdrop in US equity markets, particularly in growth-oriented sectors. Exposure to the financials sector and our tactical Nasdaq index hedge (implemented by a sub-fund) helped offset losses during the quarter.

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