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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Trojan Fund from Troy Asset Management 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Trojan Fund from Troy Asset Management)

Primary Source Intelligence • Q3 2026 Letter Analysis

Trojan Fund from Troy Asset Management Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Trojan Fund from Troy Asset Management. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+6.6%

Positioning StanceCAUTIOUS

Market CapAll Cap

GeographyGlobal, US

Digest Analysis

Quick Take

"Elevated index concentration and debt-fueled technology capex face severe headwinds from normalizing cycle-average bond yields, favoring multi-asset diversification, short-duration inflation-linked debt, and neglected compounders undergoing valuation de-ratings."

Executive Summary

Troy Asset Management's Multi-Asset Strategy maintains an equity exposure of approximately 40%, aligning closely with its long-term historical average, while shunning conventional fixed income of material duration in favor of short-dated index-linked bonds with a duration of 3.3 years and real yields up to 3%. The portfolio continues to hold gold as a key diversifier, retains tactical exposure to an undervalued Japanese yen, and maintains liquidity to avoid becoming a forced seller during market downturns. Fund-level quarterly and year-to-date return figures are not disclosed in the report. The managers argue that global financial markets are caught between an AI-driven capital expenditure boom and a secular bear market in sovereign bonds driven by sticky inflation, de-globalization, and heavy government debt issuance. With US Treasuries and UK gilts trading at yields not seen since before the 2008 financial crisis, the team stresses that the 2010–2021 era of zero interest rates was an aberration and that policy rates must remain above inflation. Furthermore, extreme index concentration masks severe valuation compression across non-AI equities as discount rates normalize. Portfolio activity has focused on identifying high-quality companies whose valuation multiples have compressed materially despite resilient earnings growth. Drawing historical parallels to the de-rating of Nifty 50 stocks in the 1970s and historical purchases of Microsoft and Coca-Cola following extended valuation contractions, the team has added several new equity holdings over the past year. Capital remains positioned defensively according to Troy's 'protect first' mandate.

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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

45%

CautiousHigh

Moderate (45%)

Positioning reflects high macro conviction in managing inflation and interest rate duration, but the letter details no single-stock position weightings or high-concentration bets. The multi-asset mandate deliberately spreads risk across equities, index-linked debt, gold, and currencies rather than concentrating in individual names.

Growth Outlook

35%

BearishBullish

Bearish (35%)

The managers express persistent caution regarding elevated market concentration, sovereign debt issuance, and debt-fueled hyperscaler capital expenditures. While seeing bottom-up value in neglected de-rated equities, they anticipate eventual cyclical earnings and equity declines led by tightening financial conditions.

Risk Appetite

35%

DefensiveAggressive

Defensive (35%)

Equity exposure is kept restrained at ~40%, conventional duration is completely shunned in favor of 3.3-year index-linked paper, and gold is held for defense. Ample liquidity is deliberately preserved to prevent forced selling during equity drawdowns.

Capital Deployment

50%

De-riskingDeploying

Net Neutral (50%)

Net equity exposure remains unchanged at ~40%, exactly near the strategy's long-term historical baseline. Incremental equity purchases in de-rated names have been offset by disciplined capital allocation elsewhere.

Forward Guidance

60%

CautiousExpansionary

Neutral (60%)

Management actively screens and deploys capital into de-rated compounders beneath the surface of the market while keeping equity exposure around long-term averages. They plan continued selective deployment without chasing momentum or high-multiple index leaders.

Language Signal

35%

BearishBullish

Bearish (35%)

The prose heavily features risk-centric terminology such as value destruction, certificates of confiscation, distressed yields, and bubble de-ratings. Counterbalancing bullish language is focused strictly on selective de-rated individual stocks and 3% real yields on index-linked bonds.

Perceived Risk

80%

Low RiskElevated

Elevated Risk (80%)

Significant systemic threats are articulated, spanning $40tn in US national debt, escalating interest burdens, hedge fund Treasury concentration, and climate threats to global food supplies. Unprecedented hyperscaler bond issuance is singled out as an acute structural risk.

Opportunity Density

55%

ScarceAbundant

Selective (55%)

Broad index-level opportunities are considered scarce and overpriced, yet beneath the surface the past year has been productive for finding discounted high-quality franchises. Multiple de-ratings have created an attractive subset of resilient businesses.

Time Horizon

85%

Short-TermLong-Term

Decade+ (85%)

The strategy operates with a multi-year to decade-long orientation, explicitly citing multi-decade bond bear market dynamics and historical 10-year equity de-rating cycles. The managers explicitly eschew short-term trading in favor of long-term capital preservation.