Enterprise AI spending is outrunning corporate forecasts. Microsoft has canceled most internal Claude Code licenses, and Uber has admitted it exhausted its 2026 AI budget within four months. Token-based pricing on agentic coding tools has produced bills that outpace headcount savings. Companies are now retrofitting financial controls onto rollouts that moved fast in late 2025. Microsoft and Uber C...
Enterprise AI spending is outrunning corporate forecasts. Microsoft has canceled most internal Claude Code licenses, and Uber has admitted it exhausted its 2026 AI budget within four months. Token-based pricing on agentic coding tools has produced bills that outpace headcount savings. Companies are now retrofitting financial controls onto rollouts that moved fast in late 2025. Microsoft and Uber Crystallize the Trend Verge reporting said Microsoft started winding down most internal Claude Code licenses in mid-May 2026. Most access in its Experiences and Devices division ends June 30. Engineers had heavily adopted the agentic coding tool. Token-based billing made consumption unsustainable at deployment scale, Fortune reported. The pullback sits beside Microsoft’s own AI workplace report on 80% productivity gains. Uber went further. Chief Technology Officer Praveen Neppalli Naga said the ride-hailing firm exhausted its full 2026 AI budget by April. Uber's CTO told @LauraBratton5 that AI coding tools—particularly Anthropic’s Claude Code—has already maxed out its 2026 AI budget 📈 “I'm back to the drawing board, because the budget I thought I would need is blown away already,” Neppalli Naga said.https://t.co/4JIBfqUO7V — Anissa Gardizy (@anissagardizy8) April 14, 2026 The company had deployed Claude Code to about 5,000 engineers four months earlier. Forbes reported per-engineer costs reaching $500 to $2,000 monthly. Roughly 70% of committed code now comes from AI tools, signaling a growing Claude reliance across major engineering teams. Industry Data Confirms a Wider Squeeze A 2025 survey from Mavvrik found 85% of companies miss AI cost forecasts by more than 10%. The same study showed 84% report AI spending cutting gross margins by over six percentage points. AI Cost Statistics. Source: Mavvrik Survey “The AI cost crisis has started,” remarked trader and investor Crypto Rover. Follow us on X to get the latest news as it happens Big Tech AI capex hit $650 billion in Q1 2...
Once-proud club has forgotten what it was trying to be after years of mismanagement in a shopping-centre annexe If you’re going to die, die with your boots on. Belatedly and pointlessly on. But on all the same. It felt deeply fitting that West Ham should show some fight on the final day of the Premier League season, but that relegation should still be confirmed by events elsewhere, any pleasure at...
Once-proud club has forgotten what it was trying to be after years of mismanagement in a shopping-centre annexe If you’re going to die, die with your boots on. Belatedly and pointlessly on. But on all the same. It felt deeply fitting that West Ham should show some fight on the final day of the Premier League season, but that relegation should still be confirmed by events elsewhere, any pleasure at a 3-0 defeat of Leeds rendered irrelevant by Tottenham’s win at home against Everton , as West Ham’s season flopped like an ailing dog in the mid-summer heat. There was at least some joy at the London Stadium, a reminder that joy is both the only thing that actually matters here, and also the precise polar opposite of the football-club-shaped blob that West Ham’s ownership has created. When Jarrod Bowen scored West Ham’s second goal on 78 minutes, charging past a Leeds defence already ranged about the place on sun loungers flicking through the latest Sally Rooney, there was a brief glimpse of some other West Ham, some other reality, a lost place of greater care and competence, other hands on the wheel. Continue reading...
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A shipment of 15,000 tonnes of rice donated by the Chinese government to Cuba has arrived at the port of Havana, the island’s president said on Sunday. The shipment is the first batch of a promised 60,000 tonnes that China says it will donate to Cuba, which is grappling with dire shortages. “That noble gesture of solidarity will reach millions of consumers throughout all the provinces and the spec...
A shipment of 15,000 tonnes of rice donated by the Chinese government to Cuba has arrived at the port of Havana, the island’s president said on Sunday. The shipment is the first batch of a promised 60,000 tonnes that China says it will donate to Cuba, which is grappling with dire shortages. “That noble gesture of solidarity will reach millions of consumers throughout all the provinces and the special municipality of Isla de la Juventud, in addition to our health and education institutions,” President Miguel Diaz-Canel wrote on social media. Advertisement The communist Caribbean country has been under a US trade embargo since 1962, which is often blamed for shortages of food and medicine. In January, Cuba stopped receiving oil from its ally Venezuela, when the United States overthrew Venezuelan leader Nicolas Maduro and began directing energy policy. Meanwhile, the US has threatened sanctions on anyone selling oil to the country. Advertisement The effective energy blockade has significantly worsened blackouts that have long plagued the country.
De Zerbi did the job he was brought in to do – now he has helped Tottenham avoid an unfathomable relegation, his task for next season is not so clear Almost half a century ago, Matthew Engel had a line in this newspaper about Sheffield United going top of the Fourth Division being like hearing a friend had been made head of the prison library: you wanted to congratulate them but really you were wo...
De Zerbi did the job he was brought in to do – now he has helped Tottenham avoid an unfathomable relegation, his task for next season is not so clear Almost half a century ago, Matthew Engel had a line in this newspaper about Sheffield United going top of the Fourth Division being like hearing a friend had been made head of the prison library: you wanted to congratulate them but really you were wondering what on earth they were doing there in the first place. It was a similar story at Spurs today: for all the understandable glee and relief, even to be in danger of relegation is evidence of things having gone badly wrong. It may be that the future has this as the first day in the new history of Tottenham. Roberto De Zerbi is clearly a manager of great promise – 11 points in seven games may not be earth-shattering, but it is a lot, lot better than what came before – and the injury crisis surely can’t be this bad for a third straight season. Perhaps coming so close to the brink will startle them into decisive action in a way that last season’s fourth-bottom finish, mitigated as it was by the Europa League success, did not. Perhaps there really will come a bracing clarity of vision and they will rise again. The world can change very quickly. It’s only four years ago that Spurs were, for the sixth season in succession, finishing above Arsenal. A season out of Europe, while it will have a negative impact on revenues, can have a remarkable rejuvenating effect. Continue reading...
Key Points Qualified charitable distributions (QCDs) have you donating funds directly from an IRA to a charitable organization. QCDs can satisfy your required minimum distribution while supporting causes you care about. You can't do a QCD out of a 401(k), but you could convert that money to an IRA and take advantage of this option. The $23,760 Social Security bonus most retirees completely overloo...
Key Points Qualified charitable distributions (QCDs) have you donating funds directly from an IRA to a charitable organization. QCDs can satisfy your required minimum distribution while supporting causes you care about. You can't do a QCD out of a 401(k), but you could convert that money to an IRA and take advantage of this option. The $23,760 Social Security bonus most retirees completely overlook › For some people, retiring with a large balance in a traditional individual retirement account (IRA) or 401(k) can be a bit of a problem. If you don't need the money, too bad -- you'll eventually be forced to start taking required minimum distributions (RMDs), which could drive up your taxes significantly. The good news is that there's a strategy you can use to reduce your tax bill while supporting causes you care about. So, it pays to read up on qualified charitable distributions (QCDs) to see how they might fit into your withdrawal strategy. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » How QCDs work A QCD is a direct transfer of funds from an IRA to an eligible charitable organization. To be clear, QCDs can be made only out of IRAs. If you have your savings in a 401(k) plan, you'll need to roll that money into an IRA to do a QCD. One big advantage of QCDs is that they count toward your RMD each year. However, unlike a typical RMD, QCDs don't count toward your taxable income. That could not only result in big IRS savings but also help you avoid other consequences that can come with having a higher income, like having to pay taxes on your Social Security benefits or being hit with surcharges on your Medicare premiums. Why QCDs trump regular charitable donations You may be thinking, "Why bother with QCDs when I can just take a retirement plan withdrawal and donate the money?" It's true that charitabl...
Key Points The Crocs brand is showing strength, with direct-to-consumer posting double-digit growth in the first quarter. International markets and its sandals category are providing solid growth avenues for an otherwise mature company. 10 stocks we like better than Crocs › A highly recognizable brand trading at 7 times forward earnings is rare. For Crocs (NASDAQ: CROX), that valuation is tied dir...
Key Points The Crocs brand is showing strength, with direct-to-consumer posting double-digit growth in the first quarter. International markets and its sandals category are providing solid growth avenues for an otherwise mature company. 10 stocks we like better than Crocs › A highly recognizable brand trading at 7 times forward earnings is rare. For Crocs (NASDAQ: CROX), that valuation is tied directly to the struggles of its HeyDude brand. The segment's revenue fell 12% in the first quarter, continuing a trend that forced the company to take a $737 million impairment charge last year. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » With HeyDude accounting for 18% of total revenue, the market's focus is understandable. The shoe brand's wholesale channel has been a disaster, and its gross margins trail Crocs by 15 percentage points. That said, the iconic Crocs brand, which accounts for more than 80% of revenue, generates plenty of free cash flow. More importantly, the quality of its revenue is improving as sales shift toward more profitable channels. Direct sales drive growth While wholesale revenue for the Crocs segment declined in the first quarter, direct-to-consumer (DTC) sales grew 13%. This shift toward company-owned websites and retail stores drives higher margins per sale and a more direct connection to its customers. The brand's geographic mix is also improving. International revenue grew to 55% of segment sales in the first quarter, up from 51.5% year over year. Growth in markets like China and India is offsetting concerns about saturation in North America and presents a growing market opportunity. Meanwhile, HeyDude's wholesale channel collapsed in the first quarter, with sales falling 25% as the company works to clean up excess inventory with its retail partners. The brand's 44.5% gross...
Restaurant and food stocks have struggled in the last few years. Some investors chalk it up to the rise of weight loss drugs like Ozempic, while others claim it is due to rising prices and a struggling consumer. I think it is a mix of both. Chipotle Mexican Grill (CMG +0.11%) and Cava Group (CAVA 1.05%) are down around 50% from highs, while Sweetgreen (SG +8.91%) is down over 80%. But which of the...
Restaurant and food stocks have struggled in the last few years. Some investors chalk it up to the rise of weight loss drugs like Ozempic, while others claim it is due to rising prices and a struggling consumer. I think it is a mix of both. Chipotle Mexican Grill (CMG +0.11%) and Cava Group (CAVA 1.05%) are down around 50% from highs, while Sweetgreen (SG +8.91%) is down over 80%. But which of these three restaurant stocks -- if any -- is the better buy today? The answer is clear when evaluating both growth, profitability, and valuation across these three businesses. Differing growth trajectories When evaluating a restaurant, the most important metric is, by far, comparable-store sales growth. This measures same-store revenue growth for locations that have been open for the past 12 months. If a restaurant brand is producing same-store sales growth above inflation, it will likely increase its long-term profit potential, as its revenue is growing faster than its costs at a per-location level. Expand NYSE : CMG Chipotle Mexican Grill Today's Change ( 0.11 %) $ 0.04 Current Price $ 32.84 Key Data Points Market Cap $42B Day's Range $ 32.41 - $ 32.94 52wk Range $ 29.75 - $ 58.42 Volume 786.4K Avg Vol 15.9M Gross Margin 21.59 % For these three restaurants, there is a wide disparity in same-store sales growth today. Cava leads the pack with 9.7% same-store sales growth, bucking the trend of restaurants struggling with traffic in recent quarters. Chipotle is in the middle, with comparable-store sales growth of just 0.5%, which is typical for a restaurant right now. However, it should be noted that this is below the current rate of inflation in the United States, which is why Chipotle's restaurant-level profit margins are down. Sweetgreen is struggling mightily. It posted comparable-store sales growth of -12.8% last quarter, which will put the salad chain in a financially distressed position if it cannot turn things around soon. Expand NYSE : SG Sweetgreen Today's Change ( 8....
Britain's Francesca Jones has always defied the odds to play elite-level tennis - but this season has tested her resilience like never before. On Sunday, she reached another milestone in a career that she was once told by doctors not to pursue. Jones battled back from a set and a break down to beat Brazil's Beatriz Haddad Maia 1-6 7-6 (7-4) 6-2 and reach the French Open second round - and claim he...
Britain's Francesca Jones has always defied the odds to play elite-level tennis - but this season has tested her resilience like never before. On Sunday, she reached another milestone in a career that she was once told by doctors not to pursue. Jones battled back from a set and a break down to beat Brazil's Beatriz Haddad Maia 1-6 7-6 (7-4) 6-2 and reach the French Open second round - and claim her first Grand Slam match win in the process. Jones was born with the rare genetic condition Ectrodactyly Ectodermal Dysplasia (EEC) and plays with a modified racquet grip. Earlier this year, she suffered lingering concussion symptoms following a freak gym accident in which the locking mechanism on a leg-press machine failed and a 45kg weight crashed onto her head and knee. "I would say this has been arguably the hardest moment of my career, this year," Jones told BBC Sport. "Having clawed my way back [to win the match], it kind of makes it better. "It shows that, irrespective of the difficulties and adversity, I'm still going to keep trying to play chess with myself and find a way forward."
Wirestock cybersecurity defenses as advances in artificial intelligence raise concerns about vulnerabilities across the financial system. According to the Financial Times, ECB Executive Board member Frank Elderson said banks have long been under pressure to improve cyber protections, but rapid developments in AI mean those efforts now need to happen far more quickly. The ECB is expected to raise t...
Wirestock cybersecurity defenses as advances in artificial intelligence raise concerns about vulnerabilities across the financial system. According to the Financial Times, ECB Executive Board member Frank Elderson said banks have long been under pressure to improve cyber protections, but rapid developments in AI mean those efforts now need to happen far more quickly. The ECB is expected to raise the issue during a cybersecurity meeting with banks on Tuesday. The urgency stems from the emergence of advanced AI systems such as Anthropic’s ( ANTHRO ) Claude Mythos Preview, which regulators fear could dramatically accelerate the discovery of weaknesses in software and IT infrastructure. The ECB reportedly plans to discuss the risks these models pose to financial stability while encouraging U.S. banks with access to the technology to share lessons with European institutions that have been excluded from testing. AI raises stakes for software vulnerabilities Regulators are particularly concerned that AI tools could identify exploitable flaws almost immediately after software updates or security patches are released, shrinking the window banks have to defend themselves against cyberattacks. Elderson reportedly told the FT that banks cannot rely on limited access to advanced AI models as justification for slower action, since cybercriminals may eventually gain access to similar technology. The issue has become increasingly sensitive in Europe after Anthropic disclosed last month that its Mythos system uncovered thousands of critical vulnerabilities across widely used operating systems and internet browsers. The company has restricted access to the model, prompting concerns among European officials and financial institutions about competitive disadvantages and security exposure. European Union officials are already in discussions with Anthropic about broader testing programs that could allow banks and corporations to assess vulnerabilities identified by the AI system. Meanwhi...
Government officials in Orange county, California, have warned that an overheated chemical tank “will fail” and could result in a chemical explosion in the area, the Environmental Protection Agency administrator said on Sunday. “We’re being told that the tank will fail, but there are different scenarios as to what that means,” Lee Zeldin, told CNN’s State of the Union on Sunday. Zeldin, a former R...
Government officials in Orange county, California, have warned that an overheated chemical tank “will fail” and could result in a chemical explosion in the area, the Environmental Protection Agency administrator said on Sunday. “We’re being told that the tank will fail, but there are different scenarios as to what that means,” Lee Zeldin, told CNN’s State of the Union on Sunday. Zeldin, a former Republican congressman with no prior experience in environmental policy, was chosen by Trump as the head of the EPA. “The most catastrophic scenario” in the chemical crisis at a facility just 5 miles from Disneyland in southern California, Zeldin said, would be “an explosion that results in other tanks to explode. That’s the reason why you see such a big evacuation that’s been done in the surrounding areas.” Zeldin noted that officials have said the “most likely scenario” is one with a “low-volume release” of the chemicals in the tank. Officials have been working to keep the temperature of the chemical tank below 85F by dumping the storage tank with water. On Friday, officials added a neutralizing agent to a nearby tank to limit the risk of explosion. About 50,000 people in the area have now been evacuated from their homes so far given concerns of a possible leak or explosion. Stephanie Klopfenstein, Garden Grove’s mayor, warned residents to take evacuation orders seriously. “This is a very dangerous situation,” she said on Saturday, the Los Angeles Times reported. Agencies in Los Angeles county have said that there is “no current threat to LA County communities”, in a post to X on Sunday. No significant changes in the situation were seen overnight into Sunday, said Brian Yau, the Orange county fire authority captain, to the Orange County Register. Officials who have been monitoring the area’s air quality said they detected no pollutants. “We are happy to report that levels are completely normal in our measurements,” said Jason Low from the South Coast Air Quality Management...
“I’m utterly devastated and have already shed tears,” says Manchester City fan Sophie Hope. There is a feeling of loss around the Etihad Stadium, a bereavement that everyone knew was coming but it does not make it any easier to take. The ownership may disagree but this is the club that Pep Guardiola built over the past 10 years and everyone in attendance against Aston Villa wanted to pay their res...
“I’m utterly devastated and have already shed tears,” says Manchester City fan Sophie Hope. There is a feeling of loss around the Etihad Stadium, a bereavement that everyone knew was coming but it does not make it any easier to take. The ownership may disagree but this is the club that Pep Guardiola built over the past 10 years and everyone in attendance against Aston Villa wanted to pay their respects. This has been a glorious epoch for the club, one that has seen complete and utter misery in modern times. Relegation to the third tier at Stoke, being regularly pummelled by Manchester United and York City away are long forgotten. The transformation was under way before Guardiola arrived a decade ago and everything has been geared towards his demands and needs. Ilkay Gündogan, Ederson and Fernandinho were back as City’s greatest hits were played. “To say City is part of my DNA is not overstating it,” Hope says. “I feel I need to try and remember that it’s football but it’s also not just football, it’s family, it’s special and Pep has brought such a huge level of enjoyment, excitement, joy and pride to our club. “I’ve been going to City for 36 years and our next manager will be the first my dad won’t have known, he died in 2021. I have to remind myself of all the good times. The happiness Pep has brought to me, my life, to Manchester will never be replicated or forgotten.” Guardiola created a magical mystical tour for City, taking the masses on triumphant tours to Real Madrid and a plethora of other of Europe’s most historical venues, leaving having not just won but shown complete dominance. None will be more memorable than Istanbul, City’s first Champions League trophy, won thanks to Rodri on an edgy night against Inter. “Pep took us into a footballing galaxy that only a handful of teams in world football will ever experience,” Andy Hooper says. “I think back to watching hundreds of games at Maine Road with my grandad. Together we never even reached a major semi-fina...
Key Points Micron's latest quarterly earnings saw revenue jump to $23.8 billion. Sandisk's stock has risen more than 3,300% in the past 12 months. 10 stocks we like better than Micron Technology › If you're paying attention to the hottest companies of the artificial intelligence era, you're witnessing the resurgence of the memory chip market. The memory supercycle is led by all-stars Micron Techno...
Key Points Micron's latest quarterly earnings saw revenue jump to $23.8 billion. Sandisk's stock has risen more than 3,300% in the past 12 months. 10 stocks we like better than Micron Technology › If you're paying attention to the hottest companies of the artificial intelligence era, you're witnessing the resurgence of the memory chip market. The memory supercycle is led by all-stars Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK). Both companies are benefiting from the growing demand for memory in AI infrastructure. While they're doing things differently, both companies have sparked intense investor interest. So which one will win the AI boom? Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Micron is benefiting from the supercycle Micron has perhaps bucked the cyclical trend that plagued memory chipmakers for years. In its latest quarterly report, Micron reported revenue of $23.8 billion in second-quarter 2026, up from $8 billion in Q2 2025. Operating cash flow grew to $11.9 billion from $3.9 billion in the same time frame. These are truly astonishing results. Sanjay Mehrotra, the Chairman, President, and CEO of Micron, said that he expects third-quarter numbers to be record-setting once again. Shares of Micron have skyrocketed in the past 12 months, shooting up more than 600% as of May 20. The future looks bright for Micron as the AI revolution shows no signs of slowing just yet. Sandisk's explosive growth Sandisk's stock has, incredibly, surged by over 3,360% in the past 12 months. Sandisk spun off from Western Digital early in 2025 and has since exploded in growth. In the company's Q3 fiscal 2026 report, revenue shot up 97% to $5.95 billion. Sandisk expects fourth-quarter revenue to range from $7.75 billion to $8.25 billion, a significant jump in just one quarter. The stock is obviou...
For some people, retiring with a large balance in a traditional individual retirement account (IRA) or 401(k) can be a bit of a problem. If you don't need the money, too bad -- you'll eventually be forced to start taking required minimum distributions (RMDs), which could drive up your taxes significantly. The good news is that there's a strategy you can use to reduce your tax bill while supporting...
For some people, retiring with a large balance in a traditional individual retirement account (IRA) or 401(k) can be a bit of a problem. If you don't need the money, too bad -- you'll eventually be forced to start taking required minimum distributions (RMDs), which could drive up your taxes significantly. The good news is that there's a strategy you can use to reduce your tax bill while supporting causes you care about. So, it pays to read up on qualified charitable distributions (QCDs) to see how they might fit into your withdrawal strategy. How QCDs work A QCD is a direct transfer of funds from an IRA to an eligible charitable organization. To be clear, QCDs can be made only out of IRAs. If you have your savings in a 401(k) plan, you'll need to roll that money into an IRA to do a QCD. One big advantage of QCDs is that they count toward your RMD each year. However, unlike a typical RMD, QCDs don't count toward your taxable income. That could not only result in big IRS savings but also help you avoid other consequences that can come with having a higher income, like having to pay taxes on your Social Security benefits or being hit with surcharges on your Medicare premiums. Why QCDs trump regular charitable donations You may be thinking, "Why bother with QCDs when I can just take a retirement plan withdrawal and donate the money?" It's true that charitable donations are generally tax-deductible. But you can't benefit from charitable contributions if you don't itemize on your tax return. QCDs are often a better choice because they bypass your adjusted gross income, keeping your overall income lower. There are limits to know about One thing to know about QCDs is that there are limits that can change each year. In 2026, you can donate up to $111,000 via a QCD. For many people, that's more than enough to satisfy an RMD. But if you have a very large retirement savings balance, you may need to come up with additional strategies to avoid a huge tax hit once RMDs begin. All ...
AdrianHancu A sharp rise in global bond yields is reviving comparisons to the period just before the 2008 financial crisis, according to Societe Generale strategist Albert Edwards, who warned that today’s selloff in government debt could eventually destabilize equity markets and the broader economy. In a May 21 report titled “Nothing to see here… just a bond market meltdown,” Edwards pointed to th...
AdrianHancu A sharp rise in global bond yields is reviving comparisons to the period just before the 2008 financial crisis, according to Societe Generale strategist Albert Edwards, who warned that today’s selloff in government debt could eventually destabilize equity markets and the broader economy. In a May 21 report titled “Nothing to see here… just a bond market meltdown,” Edwards pointed to the jump in 30-year U.S. Treasury yields above 5.2%, a level last reached in June 2007, shortly before the Global Financial Crisis began to unfold. Edwards revisited commentary from that period, when analysts warned that surging bond yields could undermine the cheap financing supporting stocks and economic growth. While equities didn’t immediately collapse in 2007, markets peaked weeks later as recession fears intensified and central banks were eventually forced into aggressive quantitative easing programs. Japan emerges as a focal point A central theme of Edwards’ report is that Japan’s bond market has become a growing source of global financial stress. He argued that the unwinding of the Bank of Japan’s ultra-loose monetary policy is pushing yields sharply higher and contributing to a broader global bond bear market. Japanese 10-year yields recently climbed to their highest levels since 1996, while longer-dated yields have risen even more dramatically. Edwards said the move could pressure global equities by tightening financial conditions and reducing liquidity that had supported risk assets for years. He also warned that rising Japanese rates alongside a weakening yen signal deeper concerns about fiscal sustainability and investor confidence in Japan’s debt markets. Inflation fears add to bond market pressure The report said inflation expectations have accelerated in recent months, partly tied to disruptions stemming from the U.S.-Iran conflict, which has contributed to higher energy prices and renewed concern about sticky inflation. Edwards argued that investors may be un...
tadamichi/iStock via Getty Images Highlights The alternative asset categories in which the fund invests performed well as a group in the first quarter. The fund produced a positive return and outpaced its benchmark, the HFRX Global Hedge Fund Index. Despite a challenging market environment, 10 of the fund's 13 individual holdings finished the quarter in positive territory. Market review and outloo...
tadamichi/iStock via Getty Images Highlights The alternative asset categories in which the fund invests performed well as a group in the first quarter. The fund produced a positive return and outpaced its benchmark, the HFRX Global Hedge Fund Index. Despite a challenging market environment, 10 of the fund's 13 individual holdings finished the quarter in positive territory. Market review and outlook The financial markets experienced weak overall performance with elevated volatility in the first three months of the year. Investor risk appetites, which were already muted due to worries about issues in the private credit space and uncertainty about the economic impact of AI, plunged in early March following the start of the conflict in Middle East. The development led to a sharp increase in crude oil prices and shortages of other commodities, fueling worries about the potential for rising inflation and weaker economic growth. Taken together, these factors weighed on the returns of traditional investments. While we believe alternative assets are a key component of portfolio diversification at all times, we think they're particularly important in an inflationary environment. The most recent quarter provides an illustration: while inflation concerns contributed to negative performance for both bonds and broad-based equity indexes, alternative assets in fact gained ground in the aggregate. We think the category can continue to fulfill its role as a source of diversification as the effects of developments in the Middle East reverberate throughout the world economy. Contributors and detractors The fund uses three main strategies: absolute return, designed to have low sensitivity to fluctuations in the broader financial markets; alternative investment approaches, where the underlying managers use opportunistic techniques; and alternative markets, which include asset classes where the drivers of performance are often unrelated to those of traditional investments. The fund's wei...