Alma UBS Multi Strategy Alternatives

Fund

Teaser:

Risk assets generated broadly positive performance in July as inflation data suggested that the US Federal Reserve could be near the end of their tightening cycle. While the overall outlook remains favorable near term, the macro implications of higher interest rates for longer reinforced recession fears for later this year or in 2024.

Monthly Performance:

At the strategy level, positive performance was driven by the Relative Value sleeve, while Equity Hedged and Trading also contributed positively, but to a lesser extent.

YTD Performance:

Year to date, positive performance has been driven by Equity Hedged strategies, while Relative Value has also contributed, but to a lesser extent. The Trading sleeve has delivered some offsetting losses. At the manager level, the largest contributor to performance is a quantitative equity manager, while the largest detractor is a merger arbitrage manager.

Performance Contributors:

MTD the largest contributor to performance was a quantitative equity manager, while a merger arbitrage manager also generated notable gains, benefitting from a high-profile deal clearing the FTC in early July, which caused deal spreads generally, to narrow. The primary contributor to performance at the position level was a deal in the technology sector.

Performance Detractors:

There were no detractors from performance at the manager level during the month.

Current investment strategy:

We have substantially reduced the overall directionality of the portfolio in order to protect capital in this period of elevated volatility. We will continue to focus predominantly on lower net and relative value strategies, which we believe are better suited to this market environment.