Key Takeaways
- • Longchamp Patrimoine won The Hedge Fund Journal's UCITS Hedge award for best 10-year performance in the fund of funds strategy category, with results measured through December 2024.
- • The fund delivered double-digit returns as of November 2025 and is on track for its best year since 2019, driven primarily by gold and metals mining equities, which contributed approximately +560 basis points through end-November.
- • Gold and precious metals mining exposure served as the single largest performance driver, reflecting both sector strength and strategic allocation timing by the fund's investment team.
- • The fund maintains direct equity exposure averaging 22%, combined with structured products bringing total equity delta exposure to approximately 40% on average, with core equity beta forecasted at 0.40 assuming average underlying beta of 1.
- • Tactical trading activity around April 2025 volatility and strategic positioning in Asia equities, bank equities, and blockchain-linked digital asset exposure contributed meaningfully to year-to-date outperformance.
Summary
Longchamp Patrimoine, managed by Sanso Longchamp under Chief Investment Officer David Armstrong, has demonstrated sustained trading performance, securing recognition from The Hedge Fund Journal for best 10-year returns in the fund of funds category through December 2024. The fund's 2025 performance has accelerated, posting double-digit gains through November and positioning itself for the strongest full-year result since 2019.
Performance attribution reveals concentrated exposure to cyclical and commodity-linked equities as the primary driver of returns. Gold and metals mining equities alone contributed approximately 560 basis points through November 2025, reflecting both the underlying sector's strength during the period and the fund's well-timed allocation decisions. This exposure reflects regulatory constraints imposed by the AMF, which prevents direct commodity investment; the fund therefore gains precious metals exposure through equity positions in mining companies. Similarly, blockchain and digital asset exposure has been accessed through equity securities linked to bitcoin and cryptocurrency infrastructure rather than direct holdings.
The fund's portfolio construction employs a dual approach combining direct equity exposure with structured products. Direct equity positions have averaged 22% of the portfolio, while structured products with asymmetric risk-reward profiles bring combined equity delta exposure to approximately 40% on average. This structure produces a core forecasted equity beta of approximately 0.40 relative to an assumed underlying beta of 1, though the fund's use of look-back hedges—which carry negative or risk-reducing profiles—suggests realized net equity beta has run somewhat lower than the core forecast. Geographic diversification toward Asia has been a strategic emphasis, with Armstrong noting that active management can generate meaningful alpha across full market cycles in the region.
Tactical positioning has added value beyond structural allocations. Trading activity around April 2025's market volatility and opportunistic management of equity and structured product positions contributed positively to returns. Bank equity exposure and strategic timing in sector rotation have complemented the core holdings in precious metals and Asia-focused equities, collectively supporting the fund's outperformance trajectory through the first eleven months of 2025.
Performance attribution reveals concentrated exposure to cyclical and commodity-linked equities as the primary driver of returns. Gold and metals mining equities alone contributed approximately 560 basis points through November 2025, reflecting both the underlying sector's strength during the period and the fund's well-timed allocation decisions. This exposure reflects regulatory constraints imposed by the AMF, which prevents direct commodity investment; the fund therefore gains precious metals exposure through equity positions in mining companies. Similarly, blockchain and digital asset exposure has been accessed through equity securities linked to bitcoin and cryptocurrency infrastructure rather than direct holdings.
The fund's portfolio construction employs a dual approach combining direct equity exposure with structured products. Direct equity positions have averaged 22% of the portfolio, while structured products with asymmetric risk-reward profiles bring combined equity delta exposure to approximately 40% on average. This structure produces a core forecasted equity beta of approximately 0.40 relative to an assumed underlying beta of 1, though the fund's use of look-back hedges—which carry negative or risk-reducing profiles—suggests realized net equity beta has run somewhat lower than the core forecast. Geographic diversification toward Asia has been a strategic emphasis, with Armstrong noting that active management can generate meaningful alpha across full market cycles in the region.
Tactical positioning has added value beyond structural allocations. Trading activity around April 2025's market volatility and opportunistic management of equity and structured product positions contributed positively to returns. Bank equity exposure and strategic timing in sector rotation have complemented the core holdings in precious metals and Asia-focused equities, collectively supporting the fund's outperformance trajectory through the first eleven months of 2025.
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