Both Alpha Funds provided positive returns in Q3 with positive contributions from all three core active strategies and very small beta exposure to traditional stocks and bonds as measured by our analysis of daily portfolio returns.

While the multi-strategy portfolio had trailed traditional 60/40 portfolio with larger exposures to US large cap equities in Q1 and Q2 of 2023, the portfolio benefited from a return to more diversified behavior in Q3. This improvement in diversification occurred while equity markets became increasingly fragile.

Equities have generally declined in Q3 2023 as market sentiment has changed towards the U.S. interest rate regime that the U.S. Federal Reserve intends to stay “higher for longer”.

The Picton Mahoney Fortified Arbitrage Alternative Fund Cl F returned 1.82%, and Picton Mahoney Fortified Arbitrage Plus Alternative Fund Cl F returned 3.23% in the third quarter of 2023.

The third quarter of 2023 saw re-emerged interest rate volatility as continued strong economic numbers reinforced a “higher for longer” expectation for central bank policy.

Equities have generally declined in Q3 2023 as market sentiment has changed towards the U.S. interest rate regime that the U.S. Federal Reserve intends to stay “higher for longer”.

Both Alpha Funds provided positive returns in Q3 with positive contributions from all three core active strategies and very small beta exposure to traditional stocks and bonds as measured by our analysis of daily portfolio returns.

While the multi-strategy portfolio had trailed traditional 60/40 portfolio with larger exposures to US large cap equities in Q1 and Q2 of 2023, the portfolio benefited from a return to more diversified behavior in Q3. This improvement in diversification occurred while equity markets became increasingly fragile.

The Picton Mahoney Fortified Arbitrage Alternative Fund Cl F returned 1.82%, and Picton Mahoney Fortified Arbitrage Plus Alternative Fund Cl F returned 3.23% in the third quarter of 2023.

The third quarter of 2023 saw re-emerged interest rate volatility as continued strong economic numbers reinforced a “higher for longer” expectation for central bank policy.