Fund manager Peter Andersland had maintained a bearish economic outlook in recent quarters, and the tariff-related uncertainty and market volatility triggered by U.S. President Donald Trump created conditions that played to the strengths of his opportunistic hedge fund. Pensum Global Opportunities gained 6.4 percent in March and added another 5.8 percent in April. The fund was up nearly 11 percent by mid-April before surrendering some of those gains amid a sharp rotation out of gold miners and a rally in the fund’s short book in line with the broader market rebound.
Pensum Global Opportunities gained 5.8 percent in April, bringing its year-to-date return to 9.3 percent. Performance contributions were fairly balanced between the long and short books, with longs adding 2.2 percent and shorts contributing 3.7 percent. Gold and silver miners were the top performers on the long side, generating 2.8 percent, while short positions in energy services and trucking added 1.8 percent and 0.6 percent, respectively. The fund had been up nearly 11 percent by mid-April, before surrendering some gains by the end of the month.
Global equity markets saw a partial rebound following the sharp sell-off around Liberation Day. Although headline-driven volatility surrounding tariffs has dominated market movements, fund manager Peter Andersland believes the greater risk lies elsewhere. “The real risk lies in earnings disappointments and recession,” he cautions. While consensus forward earnings remain optimistic, he warns that “should a supply chain shock trigger even a moderate downturn, we believe expectations will reset sharply—and painfully.”
“The real risk lies in earnings disappointments and recession. Should a supply chain shock trigger even a moderate downturn, we believe expectations will reset sharply—and painfully.”
In this environment, Andersland remains cautious on equity beta, keeping net exposure low for Pensum Global Opportunities while carefully managing portfolio risk. He has made several portfolio adjustments, starting with a reduction in exposure to gold miners, first through hedges and later through cash equity sales. “While we remain constructive over the long term, the near-term risk/reward scenario warranted a smaller allocation,” says Andersland. In contrast, the co-founder of Sector Asset Management has increased exposure to nuclear energy, noting that “spot uranium markets appear to be stabilizing, and equity price action suggests a potential bottoming process.”
“While we see compelling long ideas developing, the more actionable trades today are on the short side—another sign that downside risks to the broader market remain elevated.”
Andersland has also begun adding more convexity to the portfolio as a form of downside protection, utilizing options. “While most of our shorts are in outright equities, we’ve added put options to the portfolio, introducing convexity and allowing us to participate in downside moves without increasing net short exposure,” explains Andersland. Looking ahead, he remains optimistic about the opportunity set on both the long and short sides. “While we see compelling long ideas developing, the more actionable trades today are on the short side—another sign that downside risks to the broader market remain elevated,” concludes Andersland.
