2025 YTD Long-Short Performance
130/30 working so far on both sides
Based on our proprietary framework, the Berunda Long-Short All Asset (LSAA) strategy attempts to actively short over-valued US, European and Emerging Market equities with appropriate long positions in under-valued equities and other global asset classes such as bonds, gold, agricultural commodities and the US Dollar index on a monthly basis or if the bull-bear market probabilities change significantly. The Berunda-LSAA strategy is primarily a long-short portfolio strategy, with up to 50% shorting to capitalize on over-valued opportunities although at higher risk compared to our Global Tactical Asset Allocation strategy. Actual long/short ratios in the portfolio depend on our outlook of the macroeconomic environment and the probability of a bear market. We are currently about 130% long and 25% short in our LSAA strategy.
The strategy continued to out-perform (up 22%+ YTD so far) during the third quarter of 2025, thanks to an ongoing bull run of the overall market, and our positioning of so-called tech value names such as ORCL and AMD, that have since become quite expensive. Our slight under-performance in 2024 reflected our under-weighting of some large cap growth names, whose valuations have remained unjustfiable, in our opinion, despite the ongoing AI hyper-growth characteristics, which we believe will reverse in the second half of 2026. Our out-performance with respect to the broader market indices in 2022 reflected the profits while shorting stocks. We remained short over-valued technology names with no/low earnings for the foreseeable future, and highly speculative earnings in nature. However, the short-term performance and riskiness of shorting stocks, including mega-cap tech and meme stocks, as evidenced in 2023, remain high and we do not recommend this strategy to all of our client base, except those with very high risk tolerance. Investors should note that our overall three-year 2022-24 performance has been slightly below the S&P 500 while above the ACWI index.
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