Vektorium Master Fund Commentary · October 2026
We estimate for October 2026, the Vektorium Feeder Fund Class A was up +1.24% and is up +4.03% for the year, in US Dollar terms.
October, to put it mildly, was a volatile month. The market that seemed to only reward AI-related stocks in September did quite an about-face and tech stocks were the laggard for the month, particularly semi conductor stocks with the SOX Index (The Philadelphia Semiconductor Index) being down -15.33% for the month. Global stocks also retrenched with the MSCI All Country World Index (ACWI) down -1.63%. The equity vector within Vektorium was down about -60 basis points as our positioning in global businesses of smaller- and medium-size with healthy balance sheets weathered the storm better than the larger capitalization-biased indices. We even had a name approached for a takeover with Range Resources (RRC US). RRC is an oil and gas company (predominantly natural gas) and had been trading at attractive valuations. As energy remains one of the key bottlenecks of the AI buildout, it was not completely surprising to see a large natural gas producer like EQT Corp. approach them for a takeover. We have been focused on finding names that fit with the theses that our counterparts in Canada bring us. Scott, Devon and Bridget have remained steadfast in their pursuit of great investment opportunities that we take as valuable inputs to our investment approach.
With a tumultuous month like October, it is nice to see that our options hedges contributed about 1% to performance. The VIX index rose from about +3 points during the month to finish at 19.42 and the combination of rising volatility with the downward movement in equities allowed the options vector to more than offset the equity declines we saw. We monetized a fair amount of our hedges as we know volatility can soften as quickly as it heats up, but we have continued to stay quite hedged in the fund.
Lastly, and more comforting than September, the fixed income vector was another solid driver of performance. We have written extensively that we felt real yields in the U.S. were higher than need be and in October, against a weakening equity market, real yields started to decline. 30-year real yields declined about -25 basis points on the month and our significant exposure in these bonds added nicely to overall performance. We are still of the opinion that real yields are too high and will provide continued ballast should equity markets exhibit further volatility. Unlike 2022 when rates were at extremely low levels, we feel that in the current environment and valuation, having exposure to the bond market, particularly inflation-protected bonds, is a prudent capital allocation for the fund.
Earnings season has been choppy already. Google shares fell sharply after they reported lighter than expected revenue from search despite cloud revenue running strong. Amazon, on the other hand, initially sold off on earnings news and then recovered as investor believe their cloud revenue, coupled with their legacy platform business, are in good shape.
All this to say, we are staying nimble in our investments and hedging is proving to provide a buffer against the ever-evolving AI landscape.
Best,
V
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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.