ORCA Hedge developed slightly negatively over the month, with the fund's total return at -0.22%. The negative contribution came primarily from long equity positions, which weighed on the month's return by -0.78%. This was partly offset by positive contributions from short equity positions of +0.34% and from the bond allocation, which contributed +0.46%.
Over time, the strategy continues to display strong risk-adjusted characteristics, with a Sharpe ratio of 1.38 and a standard deviation of 6.90%. The single month's decline sits well within the fund's normal range of variation.
At the sector level, the largest positive contributions came from consumer cyclicals (+0.65%), pharmaceuticals and healthcare (+0.47%) and energy (+0.29%). Real estate and financials also contributed positively, though to a lesser extent.
The largest negative contribution came from communication services, where positioning weighed on the month by -0.78%. In addition, consumer non-cyclicals, industrials, basic materials and defensive sectors also contributed negatively.
In summary, the month was characterised by a clear dispersion across sectors, where gains in the more cyclical parts of the portfolio and in healthcare were offset by weaker performance in technology and communications.