2026 Mid-Year Fund Review: Uncorrelated Strategies Fund

The first half of 2026 began with low volatility and AI-driven momentum before the US-Israeli strike on Iran closed the Strait of Hormuz, sending Brent crude above $100 and triggering a sharp Q1 equity sell-off. Value and energy outperformed as tech and software names bore the brunt of the downturn. Q2 brought a powerful recovery - the S&P 500 gained 15.3% in the quarter - as geopolitical tensions eased and earnings surprised to the upside. Fixed income struggled as rate cut expectations were priced out entirely, and gold corrected sharply from January's all-time highs. The fund has performed in line with expectations, recovering from a sharp drawdown in March.

Performance summary

• Fund up 2.37% driven by dispersion in global markets, US equities up 9.5%.

• 9% drawdown in March peak to trough and markets were down similar.

• Fund took just over two months to fully recover this drawdown.

Historical performance is not an indication of future performance, and any investments may go down in value. Returns are net of charges. Source: Atlantic House as at 30.06.2026.

Overview of the year so far

The first half of 2026 was defined by two sharply contrasting phases, separated by a geopolitical shock that tested risk appetite across every major asset class.

January opened with low volatility, tight credit spreads, and AI-driven momentum carrying over from 2025. Equity implied volatility was near multi-year lows and the Fed, having paused its easing cycle, kept markets attuned to any shift in the inflation trajectory. Emerging markets, Japan, and Europe led early gains, while US large-cap tech continued to attract capital on the back of robust earnings and sustained AI capex commitments.

That calm was abruptly disrupted in late February when US-Israeli military action against Iran triggered the closure of the Strait of Hormuz. Brent crude surged from $72 to over $100 per barrel, simultaneously delivering an energy and inflation shock to global markets. Q1 saw a pronounced rotation: the S&P 500 fell 4.3% - its weakest quarter since 2022 - while value, energy, and materials sharply outperformed. Software and large-cap growth names bore the brunt of the sell-off, compounded by growing investor anxiety over AI's disruptive impact on existing business models. Sovereign credit spreads widened in energy-importing economies, and fixed income markets saw yields rise at the front end as rate cut expectations were priced out entirely, briefly giving way to hike pricing.

This environment proved fertile for dispersion strategies. With macro stress concentrated in specific sectors - notably software and consumer discretionary - while energy, industrials, and financials held firm, single-stock volatility diverged sharply from index-level volatility. Realised correlation across index constituents fell, allowing the gap between elevated implied index volatility and the more muted moves at the index level to be harvested. The divergence in outcomes between AI infrastructure beneficiaries and software disruptees generated sustained positive carry and mark-to-market gains through Q1 and into April.

Equity tail protection, by contrast, proved a meaningful and persistent cost over the period. Although protection was captured through the Q1 drawdown, the sharp and sustained Q2 recovery - the S&P 500 gaining 15.3% in the quarter, its largest quarterly advance in six years - eroded those gains rapidly. As geopolitical risks faded and earnings surprised to the upside, implied volatility compressed and tail hedges decayed aggressively, leaving the fund facing elevated premium costs against a strongly trending market. The record equity issuance environment, culminating in the SpaceX IPO in June, further suppressed volatility and compressed the value of downside optionality into the half-year close.

Outlook for remainder of 2026

The path forward hinges on energy markets and the Fed’s response to a still-elevated inflation backdrop. Should oil prices normalise toward pre-conflict levels, rate cut expectations could cautiously re-emerge, providing a tailwind for both equities and duration. Broadening equity leadership beyond mega-cap technology, evident in June, appears a durable trend as valuations outside the US remain compelling, and the fund should further capitalise here in the dispersion sleeve. Credit fundamentals remain broadly supportive despite compressed spreads. Gold's structural case - sovereign debt at record levels, softening official demand for Treasuries - argues for consolidation rather than capitulation. Volatility is unlikely to remain subdued which could reflect in the fund’s NAV as well.

We remain focused on:

• Return of cash + 2-4% annualised with low correlation to global equities and bonds

• Investing in systematic QIS which take advantage of structural tailwinds

• Improving risk and expectation management processes

• Raising assets through providing education on derivatives markets to clients

Tom Boyle, Fund Manager

Key risks 

This is a marketing communication. The fund is aimed at advised & discretionary market investors over the long term who have the capacity to tolerate a loss of the entire capital invested or the initial amount.​ A final investment decision should not be contemplated until the risks are fully considered. A comprehensive list of risk factors is detailed in the Risk Factors Section of the Prospectus and the Supplement of the fund and in the relevant key investor information document (KIID). A copy of the English version of the Supplement, the Prospectus, and any other offering document and the KIID can be viewed at www.atlantichousegroup.com and www.ascenderfundpartners.com. A summary of investor rights associated with an investment in the fund is available in English at www.ascenderfundpartners.com.

Historical performance is not an indication of future performance, and any investments may go down in value.

Equity Risk: The fund has exposure to equity markets. The value of equities can rise and fall.​

Counterparty Risk: The risk that a counterparty will not fulfil its payment obligation for a trade, contract or other transaction, on the due date.

Currency Risk: The fund holds assets denominated in other currencies, the value of which may rise and fall due to movements in exchange rates.

Interest Rate Risk: The fund’s investments are sensitive to changes in interest rates.​

Operational Risk: The risk of direct or indirect loss resulting from inadequate or failed processes, people and systems including those relating to the safekeeping of assets or from external events. ​

Credit Risk: The risk the issuer of the bond fails to make interest or capital payments.​

Liquidity Risk: The risk that the fund may be unable to sell an investment readily at its fair market value. In extreme market conditions this can affect the fund’s ability to meet redemption requests upon demand. ​

Derivatives Risk: The fund is permitted to use certain types of financial derivatives to achieve its objective. The value of these investments can rise and fall depending on the value of the underlying instrument. There is also a risk that the counterparty to these derivatives fails to meet its obligations. ​ For full information on

Important information 

This article is issued by Atlantic House Investments Limited and does not constitute or form part of any offer or invitation to buy or sell shares. It should be read in conjunction with the Fund’s Prospectus, key investor information document (“KIID”) or offering memorandum. Atlantic House Investments Limited is authorised and regulated by the Financial Conduct Authority FRN 931264. Atlantic House Investments Limited is a Private Limited Company registered in England and Wales, registered number 11962808. Registered Office: One Eleven Edmund Street, Birmingham. B3 2HJ.

The contents of this document are based upon sources of information believed to be reliable. Atlantic House Investments Limited has taken reasonable care to ensure the information stated is accurate. However, Atlantic House Investments Limited make no representation, guarantee, or warranty that it is wholly accurate and complete. The information provided in this material is confidential and only for use by its recipient. This material may not be disclosed or referred to any third party or distributed, reproduced, or used for any other purposes without the prior written consent of Atlantic House, any data provider and any other third party whose data is included herein and must be returned on request to Atlantic House and any copies thereof in whatever form destroyed.

The Atlantic House Uncorrelated Strategies Fund is a sub-fund of Atlantic House UCITS ICAV, an umbrella-type open-ended Irish Collective Asset-management Vehicle (“ICAV”) with segregated liability between sub-funds. Atlantic House UCITS ICAV is authorised by the Central Bank of Ireland pursuant to the European Communities Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (the “UCITS Regulations”) as amended, from time to time.

Ascender Fund Partners (Ireland) Limited, trading as Ascender Fund Partners, is a limited Liability company registered under the registered number 579677 under Irish law pursuant to the Companies Act 2014 which is regulated by the Central Bank of Ireland. Its principal office is at Suites 22-26 Morrison Chambers, 32 Nassau Street, Dublin 2, D02 X598 and its registered office is at 7th Floor, Block A, One Park Place, Upper Hatch Street, Dublin 2, D02E762. Ascender Fund Partners acts as management company to Atlantic House UCITS ICAV.