North American
Portfolio

The North American Portfolio returned +0.3% (AUD) in May 2026, broadly flat in both AUD and USD terms, following a strong April and a powerful multi-month advance across many core holdings. The S&P 500 returned +5.4% (AUD), driven largely by a narrow group of mega-cap AI and technology stocks. While this created a short-term performance gap, we view May as a disciplined risk-management month rather than a change in the portfolio’s long-term return profile.

After capturing significant upside in prior months, we positioned the portfolio more defensively through a higher hedge ratio, greater downside convexity and a more cautious net exposure profile. This reflected higher inflation expectations, rising long-end yields, geopolitical risk and narrow market leadership. The anticipated pullback did not occur, and index hedges detracted as headline benchmarks continued higher despite limited breadth beneath the surface.

This is an important distinction for investors. The short-term cost of hedging reflects our willingness to protect capital after strong gains, rather than simply maximise beta exposure into an extended market. The portfolio remains focused on structural beneficiaries of AI infrastructure, electrification, grid investment, nuclear power and critical materials, while retaining flexibility to reduce risk when market conditions appear asymmetric.

Longer-term performance remains strong. The portfolio is up +37.1% over twelve months versus +14.8% for the S&P 500 and remains materially ahead since inception. We continue to favour differentiated exposure to the physical build-out of power and infrastructure — including generation, grid capacity, nuclear fuel, thermal management and electrification — where we believe the durability of earnings growth remains compelling.

Performance Summary — AUD Returns to 31 May 2026

Returns are net of fees for the North American SMA strategy composite. Benchmark is the S&P 500. Two- and multi-year figures are annualised where indicated. Past performance is not a reliable indicator of future performance.

Top 5 positions by portfolio weight. Click any row to expand the investment thesis and Atlas conviction level. Data as at 31 May 2026.

Return shown is the individual security’s total return for the month; contribution is its contribution to the equity sleeve. Portfolio-level return reflects all positions, offsets and the options overlay.

The Emit Capital Atlas Trading System (ECATS) is Emit Capital’s proprietary decision-support framework for portfolio monitoring, risk assessment and tactical positioning. It monitors four independent signal families — momentum, macro regime, volatility structure and AI infrastructure narrative strength — to help determine whether portfolio risk should be increased, maintained, narrowed or hedged.

Interactive breakdown of the North American Portfolio by sector and market capitalisation as at May 2026.