Current market environment performance of dynamic, risk-managed investment solutions.
From sudden swells to smooth sailing
The second quarter of 2025 reminded investors just how quickly tides can turn.
April started like a squall on open water. With little warning, President Trump cast a wide net of new tariffs on trading partners around the world. Markets didn’t take kindly to the surprise: In just two days, the S&P 500 dropped more than 10%—a hard yank on the line that rattled even the most seasoned investors.
But just as fast as the drag came, relief followed. A week later, the administration backpedaled, announcing a delay in the tariff rollout while negotiations played out. That change in tone acted like a shift in wind direction. By the end of the quarter, the S&P 500 had snapped back with vigor, rising an impressive 10.94% and reaching yet another all-time high.
Elsewhere on the lake, gold continued to shine. It briefly hit a new record in June before pulling back slightly to notch a 5.75% quarterly gain. Long-term Treasurys, however, drifted into choppier waters, falling 1.92% as concerns mounted over rising U.S. debt levels and the inflationary pressure of tariffs. The U.S. dollar, already wobbling in Q1, extended its slide with a 7.04% drop, its worst first-half showing since 1973.
Other key themes during the quarter included trade-driven volatility, ongoing enthusiasm for AI-related innovation, and mounting attention to America’s fiscal health.
Yet amid the storm, our active strategies stayed alert and ready.
Thanks to our dynamic risk management and multi-strategy approach, we were well-positioned to take advantage of the rebound that followed the April 9 tariff delay. Many of our models shifted into higher equity allocations, leaning into the rally as strength returned to the market. By quarter-end,
• 92% of our equity-focused strategies were more than 40% invested in non-defensive assets,
• 95% of core strategies took a similarly bold stance,
• 67% of bond strategies leaned toward growth-oriented allocations, and
• 86% of alternative strategies moved away from hedges and into opportunity-seeking allocations.
While many investors were still reeling from April’s volatility, our strategies had already recast and were riding the wave higher. That’s the value of staying flexible, staying active, and knowing when to tighten the line or let it run.