PERFORMANCE REPORT – Q2 2025

Between April and June 2025, Indian markets traded against a mixed but ultimately supportive global backdrop. Major cross-currents included a steady U.S. Fed stance alongside cooling U.S. inflation, the ECB’s first rate cut of the cycle, bouts of long-end yield volatility emanating from Japan, and OPEC+ beginning a gradual unwind of earlier supply cuts.

For India, this translated into generally constructive equity tone, contained—though choppy—volatility, and a rupee that lagged some Asian peers even as oil stayed manageable.

Performance in Q2 benefited from a steadier global rates path and a benign (if uneven) volatility regime. Our positioning remained tactical and risk-disciplined around major event weeks. Where intra-day follow-through improved—particularly in April and late May—setups saw cleaner entries and exits, supporting the quarter’s positive P&L. Index-related flows aided market breadth into month-end rebalancing windows.

Intermittent spikes in global long-end yields and INR under-performance versus regional peers created pockets of noise in June; nevertheless, risk controls and sizing kept adverse events bounded for us, enabling the portfolio to finish the quarter with a sub-6% maximum drawdown and a strong 7.89% net return.

The 5.7% maximum drawdown remained within our risk budget amid event-driven chop, reflecting tighter stops and disciplined exposure around macro catalysts. Emphasis remained on high-quality signals over trade count, with a preference for cleaner trend/mean-reversion phases and swift de-risking when conditions deteriorated.