Upslope Capital Q3 2026 Investor Letter
Upslope’s objective is to deliver attractive, equity-like returns with significantly reduced market risk and low correlation versus traditional equity strategies.In a challenging environment for defensive, value-oriented strategies, the Fund delivered solid absolute and strong relative performance in Q3, owing largely to the announced acquisition of MarketAxess (MKTX).
Q3 marked the 10-year anniversary of Upslope’s strategy.With returns since inception ahead of its longstanding benchmarks – and just over half the downside volatility of the midcap index – Upslope has met its stated objective.
I am pleased, but not content with the results.
Upslope’score principleshave evolved slowly and deliberately over the past decade.
My commitment to remaining disciplined, regardless of market narratives and fashions, has not.
Note: LPs/clients should always check individual statements for returns, which may vary due to timing, fee schedules and other factors.
Since inception returns, downside deviation, and Sortino are all annualized figures.
I have unusually little to add to the discourse around equity market conditions, which are driven at the index level largely by the fate of the “AI trade.†Mostly, I spent the last quarter trying to reduce this thematic exposure (longandshort) in Upslope’s portfolio.
This was harder than it sounds, given my own biases as well as the breadth of these narratives.
The “AI trade†is not Upslope’s game and the fact it has consumed markets has led to big opportunities in areas Upslope has deep experience navigating.
Like Q2, Upslope’s portfolio remains concentrated in stocks that are cheap, defensive, and executing well.
What’s new: several smaller longs (mostly undisclosed “Startersâ€) that are also cheap and higher quality, but cyclical.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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