Vektorium Master Fund Commentary · July 2026

We estimate that the Vektorium Feeder Fund Class A was down -0.26% for July and is now up +4.06% YTD at the time of this writing.

July was a very volatile month. We saw the liquidation of a very large hedge fund run by a very young portfolio manager who ran into a very old problem: excess leverage. Taking sizeable positions in companies and using leverage is wonderful on the way up and woeful on the way down. The early sell-off in July was exaggerated in the last week as many tech stocks in this levered portfolio were liquidated. Nonetheless markets did stage an impressive rally for the last two days of the month.

We remain committed to our thesis that long-term value in equities will come from global businesses that can grow over time with strong management executing a business plan that can withstand competition and economic cycles. We continue to find, thanks to our counterparts at Wealhouse Capital in Canada, tremendous opportunities globally.

What really caught our attention last month was the rise in US 30-year real yields (sorry for the obvious humor). The US 30-year inflation protected bonds are hovering at 3%. The US government is offering bond holders a 3% return AFTER accounting for inflation. As stewards of your long-term capital, as students of history, and as prudential allocators of risk adjusted investments, we deem the US 30-year real yield is too high. We have and will continue to invest more should these yields rise. Over a long period this ‘ballast’ in the portfolio offers us great comfort should inflation stay elevated as we still receive a healthy inflation-adjusted return.

Over the next several months, our focus is towards finding great businesses that fit our view of small and medium-sized international businesses that will grow and become larger. There is a dislocation between ‘value’ stocks at the small and mid-sized level versus larger cap ‘growth’. We are not abandoning some of our larger cap holdings, but we will be more inclined to add exposure to the lesser-followed, lesser-known equities that we think the market has not valued properly. Just this week, Bodycote PLC (BOY LN), attracted multiple private equity bids. Not only are we recognizing value in the global smaller and medium sized companies, but it also seems others are aware and starting to unlock value for shareholders via M&A.

As always, we thank you for your continued investment and are always available for any questions you may have.

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.