The third quarter of 2025 stood out for a spectacular rebound in global markets, driven by the signing of trade agreements between Washington and its partners, corporate earnings far exceeding expectations, and the first interest rate cut by the U.S. Federal Reserve in over a year.
The S&P 500 rose by 8.8%, boosted by technology stocks, while the Euro Stoxx 50 gained 4.5% and Hong Kong’s Hang Seng surged 12.4%. In this atmosphere of broad-based optimism, Rothschild & Co Asset Management’s funds achieved remarkable performances.
R-co Valor: Selectivity and Strength
The R-co Valor fund recorded a 12% increase over the quarter. Exposure to North American equities was the main performance driver, followed by China and Europe. The technology, mining, and industrial sectors stood out, with notable contributions from Alibaba, Bombardier, CATL, and gold mining stocks.
The management team carried out targeted profit-taking (Citigroup, Morgan Stanley) and opportunistic reinvestments in Biomarin, Thermo Fisher, Capgemini, and Kingdee.
As of the end of September, the fund maintained a 74% equity exposure and 26% in cash, providing flexibility in what the managers describe as an optimistic—if not complacent—market environment.
R-co Valor Balanced: Stability and Discipline
More defensive by design, the R-co Valor Balanced fund advanced 7.1% over the quarter, with 41% in equities and 47% in bonds.
The bond sleeve benefited from the Fed’s monetary easing and the ECB’s decision to keep rates unchanged. Tactical reallocations enhanced the portfolio’s risk/return profile, resulting in an average yield of 3.2% and a duration of 4.2 years.
Cautious Management in an Uncertain World
Despite a widespread sense of confidence, Rothschild & Co Asset Management continues to favor selectivity and investment discipline.
“We maintain a rigorous approach to capture opportunities while remaining mindful of macroeconomic risks,” the managers note.
Both R-co Valor and R-co Valor Balanced embody the firm’s ability to balance conviction and prudence, navigating a still-evolving global landscape.
