Aurum’s quarterly review – Q3 2025

Multi-strategy

Allocations to multi-strategy funds contributed positively across all Aurum funds in Q3 2025. Underlying managers generally benefited from the continuation of risk-on sentiment during August and September, following a volatile July. Dispersion among managers widened slightly during the quarter as performance drivers shifted across sub-strategies. In July, most multi-strategy funds were positive despite episodic volatility in global equities. Funds with exposure to equity-oriented sub-strategies outperformed those more focused on quantitative trading. August and September brought renewed stability and favourable market conditions, which supported discretionary and some quantitative strategies.

Macro

Macro allocations were a source of positive attribution across all Aurum funds during the quarter. Performance was supported by a series of well-timed discretionary trades and thematic exposures across rates, precious metals and currencies. July was a challenging month, as resilient consumption data and policy uncertainty complicated discretionary positioning. Managers suffered losses from long shorter-dated government bonds, short US equities and interest rate trades, partially offset by gains in long precious metals and short Japanese government bonds. In August and September, macro funds rebounded strongly. The Federal Reserve’s dovish pivot and rising expectations for rate cuts supported gains. Managers profited from long bond positions, long silver and platinum, interest rate trading and short yen and Japanese government bond exposures.

Systematic

Systematic strategies delivered mixed results over Q3 2025, detracting in most Aurum funds. While most underlying funds rebounded in August after weak July performance, September saw renewed dispersion driven by sector-specific dynamics and trend reversals. In July, systematic allocations were the primary detractor across Aurum funds. US equity statistical arbitrage models struggled in particular amid a so-called “garbage rally” where lower-quality equities outperformed. August saw a strong recovery, as moderate volatility and a more stable environment benefited US statistical arbitrage and futures strategies. However, in September, directional market moves in tech equities proved challenging for equity statistical arbitrage managers, even as systematic futures funds delivered strong performance.

Event driven

Event driven allocations made a consistent, modestly positive contribution to Aurum funds invested in the strategy. Deal flow remained uneven but active, with several high-profile transactions providing meaningful support to returns. In July, performance was driven by regulatory progress in a major oil and gas merger and continued activity in South American energy assets. Detractors included the withdrawal of an Italian bank takeover bid. August saw renewed momentum: US M&A volumes increased, and there were positive developments in a food delivery platform acquisition and the failure of defensive measures in an Italian banking takeover. In September, further gains were realised from regulatory approvals in both European and Japanese mergers.

Equity strategies

Equity strategies contributed positively to performance across Aurum funds with an allocation to the strategy during Q3 2025. The quarter was marked by broad dispersion in underlying manager returns, driven by geographic and sector-specific positioning. In July, Japan-focused funds outperformed, benefiting from domestic stimulus expectations and strength in industrials and technology infrastructure. August saw continued divergence, with Asia-focused managers leading gains while US and European funds delivered moderate returns. In September, performance broadened: long US technology and Japanese AI infrastructure exposures were key drivers, while China-focused managers lagged due to persistent policy uncertainty. Directional strategies outperformed market-neutral approaches, reflecting the strength of risk-on sentiment through most of the quarter.

Conclusion

Aurum portfolios delivered another quarter of positive performance in Q3 2025, supported by contributions from most strategy allocations. The period was defined by investors’ balancing act between optimism over US monetary easing and concerns about renewed fiscal risks and trade tensions. Aurum’s diversified, low-beta portfolios remained resilient.

As global markets continue to navigate evolving macroeconomic and geopolitical dynamics, Aurum’s focus on manager selection, diversification and disciplined risk management remains central to delivering stable, risk-adjusted returns across market cycles.