Reports
Funds' Commentaries
July 2025
VAM US Micro Cap Growth Fund*
Holdings in the industrials and consumer discretionary sectors were the largest source of positive relative returns. The Fund’s holdings assigned to the financials and materials sectors detracted from relative returns. At month end, the Fund was overweight the industrials and consumer discretionary sectors and underweight the information technology and health care sectors.
The holding that contributed the most from the Fund’s relative returns during the month was Rush Street Interactive, Inc. (Ticker: RSI-US). Rush Street Interactive, Inc. engages in developing, supplying, and operating regulated online gaming sites. RSI was a top contributor after reporting second quarter 2025 earnings well above expectations with 2025 revenue and EBITDA guidance being increased. We maintained the position as estimates remain conservatively set.
The holding that detracted most to the Fund’s relative returns during the month was Celcuity Inc. (Ticker: CELC-US). Celcuity, Inc. is a clinical stage biopharmaceutical company developing novel treatments for cancer. In July, CELC released Phase 3 randomized controlled data that showed that its intravenous PI3K/AKT/mTOR inhibitor meaningfully improved survival in women with PIK3CA wild type HR+/HER2- breast cancer with a stronger-than-expected safety profile. We did not hold CELC in the portfolio, and it was a large weighting in the benchmark. Consequently, it was a larger detractor.
VAM US Small Cap Growth Fund
Holdings in the information technology and financials sectors were the largest source of positive relative returns. The Fund’s holdings assigned to the health care and industrials sectors detracted from relative returns. At month end, the Fund was overweight the industrials and consumer discretionary sectors and underweight the health care and financials sectors.
The holding that contributed most to the Fund’s relative returns during the month was Astera Labs, Inc. (Ticker: ALAB-US). Astera Labs, Inc. designs semiconductors used in high-speed connectivity applications in data centers, such as PCIe retimers, switches. ALAB was a top contributor as supply chain checks pointed to a meaningful 2H2025 dollar content increase from its Scorpio switch, used in Amazon’s Trainium AI deployments to support scalable architecture.
The holding that detracted the most from the Fund’s relative returns during the month was Natera, Inc. (Ticker: NTRA-US). Natera, Inc. is a commercial stage diagnostics company selling multiple products, chief of which is its personalized cancer recurrence assay. NTRA is the market leader in this category and has increasingly generated clinical data to support deepening and broadening penetration into various solid tumor markets, driving dramatic growth over the past many years. In July, increasing speculation regarding a competitor’s new product in development led to weaker investor sentiment and caused the stock to detract from performance.
VAM US Mid Cap Growth Fund
The Fund’s holdings assigned to the health care and industrials sectors detracted from relative returns. Holdings in the information technology and financials sectors were the largest source of positive relative returns. At month end, the Fund was underweight the financials and health care sectors and overweight the industrials and energy sectors.
The holding that detracted the most from the Fund’s relative returns during the month was Natera, Inc. (Ticker: NTRA-US). Natera, Inc. is a commercial stage diagnostics company selling multiple products, chief of which is its personalized cancer recurrence assay. NTRA is the market leader in this category and has increasingly generated clinical data to support deepening and broadening penetration into various solid tumor markets, driving dramatic growth over the past many years. In July, increasing speculation regarding a competitor’s new product in development led to weaker investor sentiment and caused the stock to detract from performance.
The holding that contributed most to the Fund’s relative returns during the month was Astera Labs, Inc. (Ticker: ALAB-US). Astera Labs, Inc. designs semiconductors used in high-speed connectivity applications in data centers, such as PCIe retimers, switches. ALAB was a top contributor as supply chain checks pointed to a meaningful 2H2025 dollar content increase from its Scorpio switch, used in Amazon’s Trainium AI deployments to support scalable architecture.
VAM World Growth Fund
Exposures to the materials and communication services sectors, as well as in Japan and Germany detracted from relative returns. Performance was aided by holdings assigned to the information technology and financials sectors, as well as in the United States and India. At month end, the Fund was underweight the United States and Canada and overweight the United Kingdom and Germany.
The holding that detracted most from the Fund’s relative returns during the month was Spotify Technology SA (Ticker: SPOT-US). Spotify Technology SA engages in the provision of digital music services and operates through Premium (subscription) and Ad-Supported segments. The stock corrected in July after a strong run, mostly due to a correction in stocks that are well-held with exposure to the momentum factor.
The holding that contributed most to the Fund’s relative returns during the month was Astera Labs, Inc. (Ticker: ALAB-US). Astera Labs, Inc. designs semiconductors used in high-speed connectivity applications in data centers, such as PCIe retimers, switches. ALAB was a top contributor as supply chain checks pointed to a meaningful 2H2025 dollar content increase from its Scorpio switch, used in Amazon’s Trainium AI deployments to support scalable architecture.
VAM Fund
In July, global equity markets rose, with emerging markets outperforming developed peers as progress on trade tariffs, robust corporate earnings, and ongoing enthusiasm for artificial intelligence (AI) lifted sentiment. Performance was positive with the exception of India.
US equities advanced on technology sector gains, improved tariff clarity, and the approval of major tax and spending plans, alongside a Q2 economic rebound of 3% growth and rising inflation at 2.7%. Eurozone stocks also moved higher, helped by tariff relief and strong results in healthcare and financials, while a compromise trade deal with the US eased concerns over steeper tariffs. UK markets posted gains, led by the FTSE 100, supported by strong performance in energy, healthcare, and consumer staples, although real estate and technology lagged.
Emerging markets delivered notable results, outperforming most global peers except the US and Asia ex-Japan. Taiwan, China, and Korea led gains, driven by AI optimism, foreign inflows, and positive trade developments, while Thailand topped performance overall.
VAM Cautious Fund
Markets wrapped up July on a positive note, buoyed by improving clarity around US trade policy and encouraging corporate earnings, particularly in tech. Equities rallied across most regions, while fixed income markets saw rising government bond yields (meaning prices fell) as shifting economic data produced varied regional outcomes.
Global equities performed well in July, supported by easing trade tensions and solid corporate earnings. Emerging markets performed strongly in constant currency terms, as easing inflation, supportive monetary policy, and improving sentiment across the region boosted asset prices. The UK outperformed the US and other developed market counterparts as strong earnings growth in energy, healthcare, and materials drove the market up. In the US, Trump’s administration announced tariff deals with a number of major trading partners ahead of the August deadline, giving investors greater near-term certainty. Tech stocks, primarily the Magnificent Seven, continued to drive markets, with most of them delivering levels of growth considerably above the rest of the market.
Global government bond yields rose over the month, with the market focused on trade negotiations and renewed fiscal discipline concerns. Corporate bonds outperformed, with improved investor sentiment buoyed by strong labour market data in the US as well as the EU-US trade agreement. High yield bonds were the top performer, as tightening credit spreads caused prices to rise. The UK gilt market was a bit choppy, with the government’s concessions on welfare cuts raising doubts over fiscal discipline. In the US, investors revised down rate cut expectations, following strong job numbers and signs of rising prices.
Currency was a key component of returns in July for Sterling investors, with the Pound shedding c. 40% of its YTD gains versus the dollar. This was the biggest monthly decline since the mini-budget crisis of September 2022. The biggest catalyst driving the pound down has been the deterioration in UK economic data, which saw the likelihood of Bank of England rate cuts increase. Strong economic data in the US also lifted the dollar, supported by firm messaging from Fed Chair Jerome Powell around rate cuts.
VAM Balanced Fund
Markets wrapped up July on a positive note, buoyed by improving clarity around US trade policy and encouraging corporate earnings, particularly in tech. Equities rallied across most regions, while fixed income markets saw rising government bond yields (meaning prices fell) as shifting economic data produced varied regional outcomes.
Global equities performed well in July, supported by easing trade tensions and solid corporate earnings. Emerging markets performed strongly in constant currency terms, as easing inflation, supportive monetary policy, and improving sentiment across the region boosted asset prices. The UK outperformed the US and other developed market counterparts as strong earnings growth in energy, healthcare, and materials drove the market up. In the US, Trump’s administration announced tariff deals with a number of major trading partners ahead of the August deadline, giving investors greater near-term certainty. Tech stocks, primarily the Magnificent Seven, continued to drive markets, with most of them delivering levels of growth considerably above the rest of the market.
Global government bond yields rose over the month, with the market focused on trade negotiations and renewed fiscal discipline concerns. Corporate bonds outperformed, with improved investor sentiment buoyed by strong labour market data in the US as well as the EU-US trade agreement. High yield bonds were the top performer, as tightening credit spreads caused prices to rise. The UK gilt market was a bit choppy, with the government’s concessions on welfare cuts raising doubts over fiscal discipline. In the US, investors revised down rate cut expectations, following strong job numbers and signs of rising prices.
Currency was a key component of returns in July for Sterling investors, with the Pound shedding c. 40% of its YTD gains versus the dollar. This was the biggest monthly decline since the mini-budget crisis of September 2022. The biggest catalyst driving the pound down has been the deterioration in UK economic data, which saw the likelihood of Bank of England rate cuts increase. Strong economic data in the US also lifted the dollar, supported by firm messaging from Fed Chair Jerome Powell around rate cuts.
VAM Growth Fund
Markets wrapped up July on a positive note, buoyed by improving clarity around US trade policy and encouraging corporate earnings, particularly in tech. Equities rallied across most regions, while fixed income markets saw rising government bond yields (meaning prices fell) as shifting economic data produced varied regional outcomes.
Global equities performed well in July, supported by easing trade tensions and solid corporate earnings. Emerging markets performed strongly in constant currency terms, as easing inflation, supportive monetary policy, and improving sentiment across the region boosted asset prices. The UK outperformed the US and other developed market counterparts as strong earnings growth in energy, healthcare, and materials drove the market up. In the US, Trump’s administration announced tariff deals with a number of major trading partners ahead of the August deadline, giving investors greater near-term certainty. Tech stocks, primarily the Magnificent Seven, continued to drive markets, with most of them delivering levels of growth considerably above the rest of the market.
Global government bond yields rose over the month, with the market focused on trade negotiations and renewed fiscal discipline concerns. Corporate bonds outperformed, with improved investor sentiment buoyed by strong labour market data in the US as well as the EU-US trade agreement. High yield bonds were the top performer, as tightening credit spreads caused prices to rise. The UK gilt market was a bit choppy, with the government’s concessions on welfare cuts raising doubts over fiscal discipline. In the US, investors revised down rate cut expectations, following strong job numbers and signs of rising prices.
Currency was a key component of returns in July for Sterling investors, with the Pound shedding c. 40% of its YTD gains versus the dollar. This was the biggest monthly decline since the mini-budget crisis of September 2022. The biggest catalyst driving the pound down has been the deterioration in UK economic data, which saw the likelihood of Bank of England rate cuts increase. Strong economic data in the US also lifted the dollar, supported by firm messaging from Fed Chair Jerome Powell around rate cuts.
*Fund is currently closed to new subscriptions.
Sources: atomos, Driehaus Capital Management LLC, FactSet Research Systems, Inc., Reuters, Yahoo Finance and Bloomberg.
Featured securities were the top contributor to or detractor from return and were held by the Fund at some point during the month of July 2025. The performance numbers for the Funds are provided by ALQUITY SICAV. The performance discussed above represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance quoted.
The information presented is intended for the sole and exclusive use of VAM Funds and contains confidential information that should only be relied on by the intended recipient.
South African Investors: This is a Section 65 approved fund under the Collective Investment Schemes Control Act 45, 2002 (CISCA). Boutique Collective Investments (RF) (Pty) Ltd is the South African Representative Office for this Fund. Boutique Collective Investments (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002).
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