LIMAF - Conventum-Alluvium Global Fund March 2025 Quarterly Report

2025-04-11 04:05:00 ET

Summary

• The market experienced significant volatility post-Trump's "Liberation Day," with a 10.4% drop in two days, signaling a shift from the "Trump Bump" to a "Trump Slump.".
• Alibaba was a standout performer with a 55.3% return, driven by its expanding cloud/AI operations and positive developments in its business environment.
• Despite some strong performers like McKesson and HCA Healthcare, concerns over tariffs and declining business confidence negatively impacted stocks like Robert Half and Thor Industries.
• Given the current uncertainty, it is prudent to keep some cash reserves as tariff implications and market conditions remain unpredictable.

Introduction

We are writing this on April 7th, just days after Trump’s “Liberation Day”. What a calamity! The Index is down 10.4% in two days (in EUR terms) 1, 2. The “Trump Bump” has turned into a “Trump Slump”. And to think just a few months it seemed universally accepted that his re-election would be positive for markets. How quickly times have changed. It’s anyone’s guess as to global growth rami?cations - but it surely will not be positive and equity prices should suffer. However we are sure Trump and tariffs are entirely to blame for the sell-off. As US Treasury Secretary Scott Bessent points out, markets peaked in mid-February. 3 We suspect that investors needed good reason to catalyse a correction - which many punters felt was inevitable....

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