Vol. 1Q25 – Newsletter

Trump’s Tariffs 2.0 may lead to higher inflation and lower growth worldwide – 1Q 2025

• The S&P 500 underperformed non-US stocks by nearly 10% in the first 4 months of 2025. This level of underperformance is the highest since 2009. On the contrary, Germany and Hong Kong equities showed a surprisingly good performance.

• The uncertainty surrounding the evolution of US trade policy remains high and is likely to continue to feed market volatility ahead. In this environment, diversification (both in geography and asset classes) can help to mitigate risks stemming from US policy. Gold was the big beneficiary of April’s uncertainty, amidst fears of a three-sided Wall of Worry (of war, inflation and recession).

• In times of uncertainty, promises of sky-high returns can sound like music to the ears. But behind the curtain, a Ponzi scheme (that often promise high returns with little or no risk) may be playing its final act. Stay alert and spot the red flags to protect your capital before the curtain falls. After studying high-profile frauds (details in the following pages), Kamet team created a practical Ponzi red flag checklist — clear, actionable… and deadly accurate.

We hope you will enjoy this read. Please reach out if you would like to discuss our funds further.