Vektorium Master Fund Commentary · August 2026
We estimate for August 2026 the Vektorium Feeder Fund (Class A) was up +0.35% and is up +4.43% YTD in US dollar terms.
After a July swoon, equity markets staged a rebound in August marking a very choppy couple of summer months. We have been positioned cautiously throughout the period as the interest rate backdropped and continued to build up debt funded capital expenditures for the AI ecosystem led us to believe the economic landscape may not be as calm as markets have priced in. To be sure when we talk to our counterparts at Wealhouse Capital in Canada, Bridget, Devon and Scott continue to find great businesses that we wish to invest in and these continue to be names that are international and smaller and medium sized. We are prepared to add to these well priced businesses as they continue their boots on the ground research into the late summer and fall.
We have invested and written about the US 30-year real yield embedded in the inflation linked bonds. We have said that near 3% real yields would pose a problem to the financial system, and to be sure, as the inflation linkers traded north of 3%, the U.S. Treasury Secretary Scott Bessent decided that enough was enough. Now his proposal to ‘shift’ U.S. funding away from the long end of the yield curve (20 years and longer) to the shorter end is not a substitute for Monetary Policy (that’s the FED’s job), but it does send a signal that the Treasury is displeased with the level of interest rates. The U.S. debt burden is immense, with rates north of 5% on US 30-year bond and 3% on inflation linked bonds, the cost of carrying that debt burden poses a real risk to the economic health of the U.S. economy.
For now, there is no real clarity from the bond market on the matter as rates have gyrated after this announcement. We do believe that this level of rates is a short-term line in the sand the U.S. Treasury does not wish to see broken. We continue to like our investment in the US 30-year TIPS and would be happy to add to this position should there be reason for rates to rise further.
We are entering a typically volatile part of the year for markets and volatility is low. We have maintained our hedges and continue to believe that long-term investing in great businesses that are a little less known will serve us well.
Best,
V
Disclaimer
This Commentary expresses the views of the author as of the date indicated and such views are subject to change without notice. Wealhouse International SEZC has no duty or obligation to update the information contained herein. This Commentary is being made available for educational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. Wealhouse International SEZC believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. All calculations and data presented is based on unaudited data and is being provided in response to specific request and is intended for internal use only. The information is provided “as is” without warranty of any kind and is subject to adjustments. Such adjustments could have a material impact on the estimated figures and are subject to revision. Wealhouse does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained herein. No warranties, promises and/or representations of any kind, expressed or implied, are given as to the nature, standard, accuracy or otherwise of the information provided herein nor to the suitability or otherwise of the information to the reader’s particular circumstances.