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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Alluvium Global Fund 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Alluvium Global Fund)

Primary Source Intelligence • Q3 2026 Letter Analysis

Alluvium Global Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Alluvium Global Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-3.2%

YTD-6.1%

Annualized+5%

Positioning StanceCONSTRUCTIVE

Market CapAll Cap

GeographyGlobal, US

Digest Analysis

Quick Take

"Concentrated value strategy holding 20 positions, initiating Jack Henry in payment systems while selectively buying beaten-down compounders like Dick's Sporting Goods and avoiding overextended AI infrastructure."

Executive Summary

Conventum - Alluvium Global Fund returned -3.2% net of fees in EUR (-3.8% in USD and -4.2% in AUD) for the third quarter of 2026, bringing year-to-date net performance to -6.1% in EUR terms. The fund trailed the S&P 500 Index, which gained 2.0% on a headline basis but saw more than 60% of constituents decline amid narrow mega-cap tech leadership. Portfolio exposure remained concentrated across 20 positions, with cash ending at a historically low 10.9% compared to 10.0% at the start of the quarter, as the team maintained an unhedged, long-only discipline. The investment team highlighted significant macroeconomic pressure from rising long-term interest rates, noting the US 10-year Treasury yield surged from 4.4% to 5.3%, depressing asset valuations across broad equities. Scepticism remains acute regarding direct AI infrastructure buildouts, citing extreme capital expenditure, unproven return profiles, and circular financing arrangements, while commodity volatility continues following Middle Eastern geopolitical disruptions and Strait of Hormuz closures. Portfolio activity was characterized by initiating a new stake in Jack Henry to expand exposure to payment processing infrastructure alongside trimmed holdings in Visa and Mastercard. The fund selectively added to Dick's Sporting Goods following an earnings-related sell-off, while increasing allocations to HCA Healthcare and Liberty Capital. Group 1 Automotive was fully divested for a 22.0% realized gain, while positions in Charter Communications, Universal Music Group, and Ryanair were held despite near-term headwinds.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

82%

CautiousHigh

High Conviction (82%)

The manager maintains a concentrated portfolio of 20 holdings with the top 10 representing 58.9% of assets, clearly sized names, and explicit willingness to buy into price weakness such as Dick's Sporting Goods. Conviction is tempered slightly by the manager electing not to add further to troubled positions like Charter Communications and Universal Music despite significant valuation discounts.

Growth Outlook

35%

BearishBullish

Bearish (35%)

The manager expresses caution regarding broader equity markets, describing popular capitalization-weighted indices as perversely expensive and overconcentrated in technology. While broad market indices face pressure from 5.3% bond yields, this caution is offset by enthusiasm for specific neglected opportunities outside the mega-cap names.

Risk Appetite

65%

DefensiveAggressive

Balanced (65%)

Capital remains largely deployed with cash held at a historically low 10.9% and equity exposures maintained across cyclical and distressed names. However, risk appetite is kept disciplined by avoiding unproven AI infrastructure players and refraining from deploying more capital into underperforming holdings like Charter Communications.

Capital Deployment

52%

De-riskingDeploying

Net Neutral (52%)

Net portfolio deployment was essentially neutral, with cash ticking up modestly from 10.0% to 10.9%. Capital redeployment into new holding Jack Henry and additions to Dick's Sporting and HCA Healthcare was balanced by the full exit of Group 1 Automotive and regulatory trims in Visa and Mastercard.

Forward Guidance

60%

CautiousExpansionary

Neutral (60%)

The team demonstrates a selective bias toward adding to undervalued franchises, initiating a new holding in Jack Henry and increasing stakes in Dick's Sporting Goods and HCA Healthcare. Nevertheless, they remain patient and held off on buying more Universal Music or Charter Communications despite large discounts.

Language Signal

45%

BearishBullish

Balanced (45%)

Directional language is fairly balanced between opportunities in mispriced businesses and pointed warnings about market froth. Critical terms such as 'quasi ponzi scheme', 'perversely expensive', and 'distressed' are countered by optimistic references to 'attractive pricing' and 'long time horizon' compounding.

Perceived Risk

72%

Low RiskElevated

Elevated Risk (72%)

The team highlights prominent macroeconomic and structural risks, including 10-year Treasury yields reaching 5.3%, Middle Eastern geopolitical strife disrupting oil supply, and potential systemic consequences from an overhyped AI infrastructure buildout. These concerns reflect elevated vigilance regarding overall market fragility.

Opportunity Density

55%

ScarceAbundant

Selective (55%)

Investable opportunities are characterized as highly bifurcated rather than broadly abundant. The team emphasizes record disparity in potential returns, noting that while benchmark giants offer poor prospects, specific neglected market pockets provide strong value.

Time Horizon

85%

Short-TermLong-Term

Decade+ (85%)

The strategy explicitly operates with a multi-year to permanent investment horizon, emphasizing maintainable owner's earnings and dismissing quarterly growth variations as noise. The manager articulates patience across long-term compounders, even expressing disappointment when a position had to be sold after a 20-month holding period.