MontLake Invenomic US Equity Long/Short UCITS Fund

During the quarter, the fund delivered a positive return, significantly outperforming the broader market, with strong gains from the short portfolio offsetting modest weakness in longs. Against a backdrop of ongoing market and factor volatility, the team at Invenomic is pleased with the fund’s resilience. Heightened uncertainty continues to create opportunities, and the team is excited about the current portfolio positioning. Recent market dislocations have revealed a number of compelling long ideas, particularly among companies demonstrating strong earnings growth but limited share price momentum. This disconnect between fundamentals and market pricing has rarely been so pronounced, with sentiment-driven trading overshadowing business performance. Many of the portfolio's long positions share these attractive characteristics, offering the potential for meaningful upside as fundamentals reassert their importance over time. Although volatility is expected to remain elevated, particularly given ongoing uncertainty around US trade policy and broader global dynamics, the team views these conditions as fertile ground for generating long-term returns. While sharp market moves can feel unsettling, they often produce the most attractive entry points for fundamentally driven investors. The team remains focused on maintaining discipline within its investment process, carefully evaluating both risks and opportunities as they emerge.