After posting the worst monthly performance in its 15-year history with a 13.7 percent decline in March, the team behind the multi-strategy Visio Allocator Fund described the market environment as “the best buying opportunity.” That conviction has since been validated: the fund rebounded sharply with strong gains in May, followed by an even more impressive 8.5 percent advance in June, and continued momentum into July – bringing year-to-date performance back into positive territory.
“The 8.5 percent return in June was excellent for the Allocator fund,” writes the four-member team managing the fund. The Visio Allocator Fund employs a flexible, multi-strategy approach, allocating across equities, fixed income, and market-neutral strategies. All components contributed positively in June, with the long/short equity portfolio delivering the largest contribution at 5.6 percent. Market-neutral strategies added 2.3 percent, index hedges contributed 0.5 percent – the fund’s strongest positive contributor year-to-date – and fixed income positions also edged up.
“The 8.5 percent return in June was excellent for the Allocator fund.”
Visio Allocator’s equity exposure reflects three broad themes, all of which contributed meaningfully to the fund’s strong performance in June. “The most significant of these is the growth that artificial intelligence is bringing to the semiconductor industry,” writes the team, noting that stocks in this sector rallied as investor confidence in AI rebounded following earlier-year uncertainty. “The second theme is the opportunities offered by companies related to cryptocurrency and data centers,” continues the team. A standout in this area was Core Scientific, which surged late in the month after the Wall Street Journal reported that cloud services firm CoreWeave may be preparing an acquisition bid. The third theme – cybersecurity – also delivered strong results. In addition to the equity-driven gains, a successful EUR/USD currency hedge further bolstered fund performance.
Following a solid recovery over the past three months after the sharp decline in March, the Visio team remains constructive on the outlook for equity markets. This optimism is reflected in the fund’s high net equity exposure, which stood at 96 percent at the end of June. “However, we continue to monitor the impact of major uncertainties on the markets – namely the trade war, tensions in the Middle East, and the rapid pace of U.S. government debt accumulation,” the team notes.
“…we continue to monitor the impact of major uncertainties on the markets – namely the trade war, tensions in the Middle East, and the rapid pace of U.S. government debt accumulation.”
Following the strong rebound in May, Visio Allocator’s assets under management have climbed back above €100 million, recovering from a dip below €90 million in March. The fund has also strengthened its investment capabilities with the addition of technology specialist John-Axel Stråhlman, who joined as a portfolio manager in early May. His appointment further reinforces the fund’s strategic focus on the technology sector, which now accounts for more than half of its net equity exposure.
