Hello from Sterling Alpha Group,

This month, I’d like to share a unique experience. While hiking up the Acropole des Draveurs in Quebec, I found myself without mobile reception for a few days. But at the summit, overlooking a stunning valley, I managed to get a signal just in time to execute a trade for Gamma Goblin. It wasn’t the best trade in terms of execution—it was the best feeling. After a challenging four-hour climb, achieving that zen moment on the peak made it all the more memorable. It was a reminder of how, with the right setup and preparation, managing investments can be done from almost anywhere.

Turning to our performance: Gamma Goblin was up 0.39% this month, compared to its benchmark, the QQQ, which gained 1.10%. Despite the slight lag, the strategy remains ahead of its benchmark by 5.1% since inception, thanks to our team’s active trading and market insight.

Credit is due to GVIP, the hedge fund ETF that has performed exceptionally well. After discussions with the manager, we’ve agreed to cut The Sage’s capital allocation by 50% and to diversify the number of positions in the portfolio to between 30 and 50, up from a more concentrated stance. While The Sage hasn’t matched its benchmark recently, it has still made us good returns overall. We believe that increasing diversification will enhance its resilience and performance. August was a challenging month, with some losses incurred, but the market has since rebounded. The strategy was initially allocated to avoid the large, prolonged meltdown that occurred when COVID-19 originally hit, and it succeeded in that regard. We plan to revisit the portfolio next month to assess its performance and make any necessary adjustments. Ultimately, only the long term will truly reveal the system’s effectiveness.

As the weather cools and we move into autumn, it’s a natural time for reflection. At Sterling Alpha Group, we’re using this period to reassess and sharpen our R&D priorities. Our focus remains on innovation and improving our asset allocation models. We’re excited about the developments in this area and believe they will strengthen our future strategies.

On a final note, we strive for efficiency in all aspects of our work, including communication. We utilise large language models (LLMs) to help us craft our updates and streamline our processes. Transparency and efficiency are core to our values, and we believe in leveraging technology to better serve our investors.

Thank you for your continued trust in Sterling Alpha Group. We remain dedicated to achieving the best outcomes for our investors and look forward to sharing more exciting updates with you next month.

Until next time,
Derek,
Sterling Alpha Group