Aperture Small Cap Innovation - Q2 2025 Manager Commentary
In Short
Aperture Small Cap Innovation Fund: Commentary for Q2 2025
Quarter in review
Global equities proved resilient once again in Q2 2025, but the standout performance came from Europe – driven by currency tailwinds, strong earnings, and a growing anticipation of the upcoming fiscal stimulus supporting the cheap valuations relative to the U.S. The quarter’s defining moment came early: on 2 April, President Trump declared “Liberation Day” with a sweeping 10% tariff on all imports, alongside steep “reciprocal” rates up to 120%. Markets tumbled – S&P 500 and Nasdaq 100 fell ~13 – 14% in days, and the VIX surged into the low 50s, marking one of the ten largest spikes on record.
But the panic was short-lived. As rhetoric cooled, Q1 earnings surprised to the upside, and corporate buybacks hit all-time highs, sentiment swiftly turned. By 7 May, U.S. indices had fully recovered. The S&P ended the quarter up +10.9% in USD (+2.0% in EUR), while the Nasdaq soared +17.9% in USD (+8.3% in EUR) – strong on paper, but flattered by the dollar’s collapse (DXY -8%).
