Growth Diversified Strategy (GDS): May 2026 Investor Update
Portfolio Manager’s Note
The GDS Portfolio continued to navigate a challenging global market environment in May, shaped by political uncertainty, elevated volatility, and ongoing conflict in the Middle East. Against this backdrop, our focus remained firmly on capital preservation, disciplined risk management, and maintaining a well-diversified investment approach.
For the month, the Portfolio delivered a modest positive return of +0.11%, while continuing to exhibit notably low volatility. In a period where many traditional investment approaches have been tested by sharp market moves and shifting global narratives, this stable performance reinforces the strength of our risk management framework.
Year to date, the GDS Portfolio has returned +2.91%, reflecting steady progress through a volatile first five months of 2026. While a more aggressive allocation may have produced higher returns in hindsight, we believe the Portfolio’s positioning was appropriate given the heightened uncertainty experienced from February through May.
Key Takeaways
+0.11%
+2.91%
May: Portfolio Positioning
Due to the continued conflict in the Middle East throughout April and May, we further enhanced portfolio diversification by introducing additional strategies alongside our existing allocation to high-yield fixed-income assets. These changes were made to strengthen resilience across a broader range of market conditions.
The overall portfolio allocation has been maintained at approximately 90%, following a strong-to-moderate start to the year. The risk team continues to monitor market conditions closely and will adjust exposure where appropriate.
The Portfolio currently comprises 17 distinct strategies across five asset classes, reflecting our commitment to a robust, balanced, and adaptive investment framework.
Long-Term Performance
GDS Vs Indices
Since inception on 1 January 2020, the GDS Strategy has delivered strong absolute and relative performance.
A hypothetical equal-weighted allocation across four major indices would have generated approximately +63.48% over the same period. By comparison, the GDS Portfolio has achieved +86.05%, representing an outperformance of approximately 22.6 percentage points, while maintaining significantly lower volatility.
This long-term performance highlights the value of our diversified, risk-managed approach, particularly during periods of market stress.
May 2026 Contribution and Performance
May’s return of +0.11% reflects our continued emphasis on disciplined portfolio construction and controlled risk exposure. Current market conditions remain uncertain, and we believe a measured approach is still appropriate.
We remain proactive in identifying high-quality strategies across additional sectors to further improve diversification and enhance long-term performance potential. Any new strategy must pass a rigorous evaluation process and meet our strict risk management criteria before being added to the Portfolio.
At the start of June, we introduced one additional strategy and removed one existing strategy as part of this ongoing review process.
Performance Contribution per Asset Class
Outlook
We remain committed to our all-weather investment strategy, built around disciplined risk management, adaptive positioning, and long-term capital growth.
As the year progresses, our objective is to continue identifying attractive opportunities while protecting capital across diverse and often unpredictable market environments.
Transparency
The GDS Portfolio is now listed on the Barclay Hedge platform, with Eureka Hedge coverage expected shortly, providing investors with additional transparency and independent performance tracking.
Best Wishes,
The JPFS Investment Team
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