Core Strategy
| MAY 2025 | 1ST QTR | YTD | 1-YR | 3-YR | 5-YR | 10-YR | 15-YR | 20-YR | 25-YR | SINCE INCEP 06/01/87 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GROSS OF FEES | 3.28% | -0.21% | 3.79% | 6.91% | 7.91% | 9.35% | 7.02% | 7.66% | 7.49% | 8.34% | 9.61% |
| NET OF FEES | 3.23% | -0.35% | 3.55% | 6.30% | 7.29% | 8.71% | 6.37% | 6.98% | 6.81% | 7.60% | 8.83% |
| S&P 500 | 6.29% | -4.27% | 1.06% | 13.52% | 14.41% | 15.94% | 12.86% | 14.08% | 10.47% | 7.87% | 10.58% |
| 50% S&P 500/50% GLOBAL AGG. | 2.96% | -0.80% | 3.53% | 10.82% | 7.92% | 7.37% | 7.23% | 8.02% | 6.82% | 6.19% | NA |
| BLOOMBERG GLOBAL AGGREGATE | -0.36% | 2.64% | 5.28% | 7.03% | 1.00% | -1.35% | 0.94% | 1.44% | 2.23% | 3.44% | NA |
The Core strategy was up 3.3% for the month – benefiting from equity outperformance and a positive spread between long and short positions. Fixed income holdings were a slight drag on performance as rates moved higher throughout the month. Core is up 3.8% on a year-to-date basis.
The Major Trend Index moved from Negative to Neutral during May. The rally that kicked off in early April continued throughout May, reversing the Technical category from negative to positive. Valuations remain a negative counterweight to price action, but we’re encouraged by the multiples, both absolute and relative, of mid and small caps. Net equity exposure currently sits at 50-51%.
Select Industries Strategy
| MAY 2025 | 1ST QTR | YTD | 1-YR | 3-YR | 5-YR | 10-YR | 15-YR | 20-YR | 25-YR | SINCE INCEP 01/01/96 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GROSS OF FEES | 7.05% | -2.99% | 4.45% | 10.11% | 12.86% | 16.75% | 11.45% | 13.11% | 10.92% | 10.94% | 14.17% |
| NET OF FEES | 6.99% | -3.17% | 4.15% | 9.15% | 11.78% | 15.61% | 10.36% | 12.07% | 9.98% | 9.97% | 13.15% |
| S&P 500 | 6.29% | -4.27% | 1.06% | 13.52% | 14.41% | 15.94% | 12.86% | 14.08% | 10.47% | 7.87% | 9.99% |
| S&P 400 MIDCAP INDEX | 5.40% | -6.10% | -3.26% | 2.17% | 7.81% | 12.93% | 8.73% | 11.27% | 9.43% | 9.21% | 10.89% |
| LIPPER MULTI-CAP CORE | 5.93% | -4.54% | -0.05% | 9.99% | 12.18% | 14.45% | 10.85% | 12.23% | 9.41% | 7.43% | 9.13% |
The Select Industries strategy was up 7.1% in May, outperforming both large and small cap indexes by 1-2% for the month. Defensive positions lagged for the month, but industry holdings throughout the rest of the portfolio more than made up the lag. Education Services continued to outperform, while cyclical industries such as Hotels & Cruise Lines, Construction & Engineering, and Banks also contributed to relative outperformance. The strategy is up 4.5% year-to-date.
Select Industries is currently positioned with a barbell approach, balancing exposure to equity segments that offer more upside, alongside more defensive groups that are insulated from tariffs. Industries such as Systems Software, Hotels & Leisure, and Banks increase participation in strong months like May, while areas like Precious Metals, Gas Utilities, and Health Care Distributors have provided downside protection during more volatile periods.
There was no turnover during May. The portfolio is overweight Communication Services, Financials, Materials, and Utilities. It is underweight Information Technology, and there is no exposure to Consumer Staples, Energy, or Real Estate.
Grizzly Short Strategy
| MAY 2025 | 1ST QTR | YTD | 1-YR | 3-YR | 5-YR | 10-YR | 15-YR | 20-YR | 25-YR | SINCE INCEP 11/01/90 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GROSS OF FEES | -4.95% | 5.58% | 2.72% | -2.38% | -6.20% | -12.07% | -11.87% | -13.08% | -10.86% | -7.93% | -7.62% |
| NET OF FEES | -5.05% | 5.26% | 2.18% | -3.61% | -7.37% | -13.17% | -12.94% | -14.07% | -11.97% | -9.05% | -8.68% |
| S&P 500 | 6.29% | -4.27% | 1.06% | 13.52% | 14.41% | 15.94% | 12.86% | 14.08% | 10.47% | 7.87% | 10.98% |
| S&P 400 MIDCAP INDEX | 5.40% | -6.10% | -3.26% | 2.17% | 7.81% | 12.93% | 8.73% | 11.27% | 9.43% | 9.21% | NA |
| LIPPER DEDICATED SHORT BIAS | -9.25% | 9.35% | -3.67% | -15.10% | -15.27% | -21.15% | -18.96% | -20.48% | -16.81% | NA | NA |
Grizzly Short Strategy was down 5.0% in May, performing well relative to inverse market performance. Short positions in Chemicals, Pharmaceuticals, Life Sciences, and Household Products contributed on an absolute basis, while stock selection within Information Technology (Semiconductors, Systems Software) and Communication Services helped on a relative basis. The strategy is up 2.7% year-to-date.
The strategy is overweight Consumer Discretionary, Industrials, Materials, and Real Estate. The strategy is underweight Information Technology, Communication Services, and Health Care. Semiconductors, Health Care Equipment, Industrial Machinery, and Aerospace & Defense are the largest industry exposures.
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