Estonian fund manager Sarto Capital Management has launched Sarto Global Systematic Equity Fund, aimed at professional investors. The fund uses a systematic global long/short equity strategy, built to an international institutional standard, and invests in equities across developed markets.

In April 2026, the equity markets entered a state of exception. The broad market indices like the MSCI World and S&P 500 posted eye-watering 10% returns in a single month. But beneath the surface, things get even more interesting. The Philadelphia Semiconductor Index (SOX) posted a +38% monthly return – a rate of increase seen only once before, during the terminal "blow-off top" of February 2000. Simultaneously, an index of unprofitable technology companies rallied +25%.

April 2026 has been a challenging month for quality-oriented portfolios. With the prospect of a ceasefire in the Middle East, stock markets have ripped higher, driven by companies with questionable fundamentals. As geopolitical risk premia evaporate, defensive factors like Quality and Low Volatility have suffered in a classic "junk rally."

The inaugural full year of Sarto Capital Management has drawn to a close. While a year is but a single step in a much longer journey, it serves as a vital milestone for reflection. Since our launch in late March 2025 through the close of March 2026, the strategy has delivered a total return of 14.8%, outperforming the global market by 5.9%. [1]