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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Easterly - Hedged Equity Fund 2026 Q1 Investor Letter | Buyside Digest

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Primary Source Intelligence • Q1 2026 Letter Analysis

Easterly - Hedged Equity Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Easterly - Hedged Equity Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+0%

YTD+0%

Annualized+7.79%

Positioning StanceNEUTRAL

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"Geopolitical tensions and oil price surges drove volatility spikes that the Fund monetized effectively. With equity valuations now more balanced, the strategy remains well-positioned for uncertain markets ahead."

Executive Summary

Easterly's hedged equity strategy delivered strong downside protection in Q1 2026, avoiding 60% of market decline through dynamic beta management and shorter-dated hedging. Geopolitical tensions and oil price surges drove volatility spikes that the Fund monetized effectively. With equity valuations now more balanced, the strategy remains well-positioned for uncertain markets ahead.

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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

65%

CautiousHigh

Moderate (65%)

The manager demonstrates solid conviction in their hedging strategy and dynamic beta management approach, with specific evidence of effective execution during Q1 volatility. However, no individual positions are named or sized, and the strategy is systematic rather than concentrated, limiting the conviction score to the moderate range.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager expresses cautious optimism, noting that U.S. equity valuations have moderated and appear more balanced relative to expected 2026 earnings, though uncertainty remains. The tone is constructive but acknowledges ongoing risks.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The Fund maintains its systematic hedging approach with shorter-dated structures, indicating a defensive but not overly cautious positioning. The strategy allows for market participation while providing downside protection.

Capital Deployment

De-riskingDeploying

De-risking (0%)

No specific information provided about cash level changes or net deployment activity. The letter describes dynamic adjustments and resetting exposures but without quantitative details on net capital deployment direction.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

The manager believes the Fund remains well-positioned for the future, with confidence in their dynamic beta management approach to handle various market conditions, though they acknowledge continued uncertainty.

Language Signal

10%

BearishBullish

Bearish (10%)

Language is balanced with both risk acknowledgment (geopolitical tensions, inflation concerns, uncertainty) and opportunity recognition (effective hedging, balanced valuations, well-positioned). Slightly more constructive than cautious overall.

Perceived Risk

70%

Low RiskElevated

Elevated Risk (70%)

The manager identifies multiple significant risks including Middle East geopolitical tensions, oil supply disruptions, inflation concerns, Federal Reserve policy repricing, and elevated market volatility. These risks are discussed in detail with specific market impacts described.

Opportunity Density

45%

ScarceAbundant

Selective (45%)

The manager notes that equity valuations have moderated and appear more balanced, suggesting some improvement in the opportunity set, but emphasizes that uncertainty remains and doesn't characterize opportunities as abundant.

Time Horizon

60%

Short-TermLong-Term

Multi-Year (60%)

The strategy appears focused on medium-term positioning with systematic hedging structures that adjust to market conditions over time. The 4-5 week hedging timeframe suggests tactical adjustments within a longer-term framework, indicating a medium-term investment horizon.