Quarterly Report Q4 2025

Performance Overview

The fourth quarter of 2025 presented a challenging environment for European quantitative strategies, with our fund delivering a net return of 3.8%. Market conditions were characterized by elevated volatility in November and December, compounded by liquidity constraints typical of year-end trading. Our systematic approaches faced headwinds from reduced market efficiency as institutional flows diminished through the holiday period. Despite these challenges, year-to-date performance reached 11.4%, modestly outperforming the STOXX Europe 600 index while maintaining lower realized volatility. The quarter highlighted the importance of robust risk management, with our position sizing algorithms successfully limiting exposure during periods of heightened uncertainty.

Strategy Performance

Our statistical arbitrage book remained the primary contributor to quarterly performance, benefiting from mean-reversion opportunities in European equities. Momentum strategies experienced notable underperformance as directional trends reversed following the October rally. Market neutral positioning provided stability but was constrained by compressed spreads in pairs trading.

Quarterly Developments

• • Enhanced signal processing framework to reduce false positives in low-liquidity market conditions.
• • Momentum strategies suffered from trend reversals in November.
• • Successfully managed portfolio exposure through ECB's December policy meeting.

Forward Outlook

As we enter 2026, we maintain a cautiously optimistic view on systematic strategy opportunities across European markets. The normalization of volatility conditions in the first half should provide more favorable environments for mean-reversion strategies.