Aurum’s quarterly review – Q2 2025

Multi-strategy

Allocations to multi-strategy funds rebounded from a disappointing Q1 and were accretive to performance every month of the quarter across all Aurum funds. In April and May, returns were supported by increased equity dispersion and volatility, which benefited funds with exposure to quantitative equity and equity-oriented sub-strategies. This continued into June, with a notable improvement in risk appetite following the easing of US–China trade tensions and Middle East geopolitical risks. Managers with a more discretionary or fundamental equity focus outperformed those with higher exposure to quantitative strategies during the late-month market rally.

Macro

Macro allocations contributed positively to performance in all Aurum funds, driven by strong performance in April and June. Discretionary macro managers capitalised on opportunities in shorter-dated government bonds, precious metals (notably silver and platinum), and interest rate trading. These trades reflected both directional macro views and a search for safe havens amid uncertainty. While April provided fertile ground for short equity positioning and long commodity exposures, May saw modest losses – primarily from short US equities and currency trading – which were only partially offset by gains in fixed income and metals. Overall, macro managers benefited from being nimble and selective during a volatile period.

Systematic

Systematic strategies supported performance in all Aurum funds. April and May were generally beneficial environments for systematic managers, particularly for those employing statistical arbitrage and short- to medium-term signals, with strong results in the US growth and technology sectors. However, June proved more challenging. A surprise rally in the final week of the month weighed on performance, particularly for managers with higher exposure to US stat arb and futures trend-following strategies. Dispersion in returns among underlying managers was evident.

Event driven

Event driven allocations made a consistent, modestly positive contribution to Aurum funds invested in the strategy. Key drivers included the closure of several high-profile deals—notably in the steel sector and Singaporean real estate sector —as well as continued deal flow across US large-caps. Performance was also supported by successful completions in the neuroscience and packaging sectors. However, European deal activity remained muted and Q2 deal volume declined, tempering broader gains. Regulatory delays and isolated negative developments, such as the failed acquisition of an Italian bank, and issues in the acquisition of an Australian pharmaceutical company, also acted as modest headwinds.

Equity strategies

Equity strategies contributed positively to performance across Aurum funds with an allocation to the strategy during Q2 2025. US and European-focused managers outperformed those with exposure to China and, to a lesser extent, Japan, particularly in April and May. In June, all underlying equity managers generated positive returns, though dispersion remained due to idiosyncratic portfolio positioning. More directional strategies outperformed market neutral approaches.

Conclusion

Aurum portfolios delivered another strong quarter in Q2 2025, supported by contributions from all strategies. The period was marked by sudden shifts in market sentiment, largely around President Trump’s imposition of tariffs on international trade. These were rolled back in April in exchange for a 90-day freeze, which marked a tentative thaw in US–China tensions as both sides reopened trade channels and signalled cautious willingness to stabilise relations. Aurum’s commitment to diversified, low-beta portfolios, focused on identifying managers with differentiated edge and disciplined risk management, remains central to navigating increasingly complex and volatile markets.