Summary
- US equities started 2025 strong but reversed as bond yields rose, policy uncertainty increased, and trade tensions escalated, driving a risk-off environment.
- The Goldman Sachs U.S. Equity Insights Fund underperformed the S&P 500 in Q1 2025, with all investment pillars detracting from excess returns.
- High-Quality Business Models, Themes & Trends, Sentiment Analysis, and Fundamental Mispricings strategies all struggled, particularly during earnings season and in select sectors.
- Despite long-term investment beliefs in quality, trends, and sentiment, recent quantitative signals failed to deliver, highlighting risks and style headwinds for the fund.
Market Review
US large cap equities (S&P 500) started the year down 4.27%. In early 2025, US equities initially surged in January as positive economic data and strong corporate earnings were released. However, February saw a shift in optimism. Bond yields rose, policy uncertainty grew, and volatility
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