Unfiltered Insights

Welcome to this new edition of Unfiltered Insights — bringing you fresh, uncurated perspectives from boutique asset managers. This month, we dive into Emerging Markets, where opportunities seem to multiply, and look at the High Yield market, where spreads are sitting at historically low levels. We also share a glimpse of innovation out of Zurich, where Bitcoin and Gold are being brought together in a creative new way.

I hope you enjoy the read and find it useful. And as always, if you’d like to go deeper into any of these themes, feel free to DM me.

(Views are my own. This content does not constitute investment advice — please do your own research.)

Tariffs, turbulence, and trade tensions… yet Emerging Markets are proving stronger than many expected. GEM specialist fund manager Sephira shares their latest insights.

"Emerging Markets ended July on a strong note, with the August 1st tariff “deadline” surprisingly turning into a positive catalyst. While the headline numbers looked harsh, carve-outs for sectors like semiconductors and autos shifted the burden away from EM partners and squarely onto US corporates and consumers. For investors, that clarity opened the door to opportunity.

Volatility in India and Brazil, triggered by sudden tariff surprises, created particularly interesting entry points in industries such as aviation and online travel. What at first looked like a punishing sell-off quickly became a chance to add exposure — and both areas have already shown signs of recovery.

Semiconductors remain a powerful theme. Foundries and equipment manufacturers are benefiting from renewed orders, with hyperscalers back in investment mode and signalling confidence in long-term demand. For us, the sector continues to represent one of the most compelling structural growth opportunities across global markets.

China, too, is proving more resilient than many expected. Exports now exceed those of the US, Japan, and Germany combined — and not just through transhipment. High-value industries like autos, solar, engineering equipment, and AI services are stepping onto the world stage. Meanwhile, domestic measures, from family subsidies to campaigns to reduce overcapacity in upstream sectors, are beginning to support consumption. Signs of recovery are appearing in the bond market, the stock market, and even in consumer areas such as leisure and tourism.

Elsewhere, banks in the Middle East modestly raised guidance, Eastern European financials rallied on geopolitical speculation, and European defence companies used share price weakness as a launchpad to strengthen their positions through acquisitions. In Brazil, healthcare names appear to have turned a corner on their litigation challenges, with growth expected to pick up in the second half of 2025.

Looking across the landscape, what stands out is not a lack of opportunity but the opposite. Between the established mega-cap narratives of AI, semiconductors, and China, and the idiosyncratic regional stories unfolding in places like Brazil, South Africa, Argentina, and Korea, we feel spoiled for choice. Over the past quarter, we’ve rotated almost half the portfolio into refreshed ideas that we believe are better positioned for this evolving environment.

It’s rare in Emerging Markets to have this many compelling opportunities at once. But that’s exactly where we are today."

High Yield Spreads at Historic Lows: What Comes Next? Concise Capital, Miami based High Yield specialist, shares how it is positioning in today’s market.

"July proved to be a constructive month for credit markets, and High Yield in particular. Sentiment improved as policy uncertainty eased: U.S. tariff deadlines were pushed back, fresh trade agreements were signed, and a substantial fiscal package was announced. At the same time, the Federal Reserve kept rates steady, even as higher government spending has added pressure for eventual policy easing. Economic data remained mixed, but crucially it reinforced the idea of a slowing — not stalling — economy, which risk assets welcomed.

Against this backdrop, a barbell strategy — combining higher-yielding issues with short duration — continued to prove resilient. The portfolio benefited from progress in select restructurings within financials, industrials pursuing strategic alternatives, and new allocations in areas such as technology, media, payments, and healthcare innovation. We also believe that in an environment of compressed spreads, it is critical to maintain close engagement with issuers — ensuring that capital structures remain robust and investor protections are respected.

Our capital rotation remained deliberate throughout the month: initiating new positions across diverse industries, adding to yield-to-call opportunities where pricing was compelling, and reducing exposure where valuations had run ahead of fundamentals. This ongoing rebalancing reflects the core of our philosophy — dynamic allocation that balances risk with opportunity in real time.

Looking ahead, we note that high yield spreads have tightened to near historically low levels. In our view, this leaves limited margin for error and points to the likelihood of some near-term widening. To position for this, we have increased hedge exposure while maintaining the barbell construct — combining short-duration paper with carefully chosen senior secured bonds. With volatility likely to re-emerge, we believe the coming months will create more attractive entry points for investors who can remain patient and selective."

What's new?

"Bitgold", or when AI Meets Bitcoin and Gold. Innovation out of Zürich.

"Innovation in structured products continues to push boundaries. The latest example is Bitgold, a newly announced tracker certificate created through a partnership between newly established, Zürich based asset manager Eqitron, and Helveteq. The idea? To combine two of the most talked-about assets of the past decade — Bitcoin and gold — under one roof, with a touch of artificial intelligence to guide the way.

The product starts 120% invested: 100% in cryptocurrency and 20% in gold. From there, the AI engine from Eqitron dynamically adjusts the balance between the two assets. If sentiment in gold turns bullish, for instance, the system shifts weight away from crypto and toward the precious metal. The aim is to provide investors with exposure that adapts proactively to market moods, rather than reacting after the fact.

The target audience is clear: those who feel they may have missed the right entry point into Bitcoin, as well as existing holders looking for a partial hedge against volatility. While time will tell whether this concept delivers on its promise, Bitgold reflects an ongoing theme: investors continue to seek innovative ways to blend traditional safe-haven assets with digital disruptors. And in this case, AI provides the balancing act."

Disclaimer: The content of this newsletter is provided for informational purposes only and does not constitute investment advice, an offer, or a recommendation to buy or sell any financial instrument. Opinions expressed reflect the views of the authors at the time of publication and are subject to change without notice. Investors should conduct their own research and consult with professional advisers before making any investment decisions.