Sequoia

*Data correct as: 04/30/2026

April was dominated by the fragility of the ceasefire in Iran and the persistence of the energy shock. Although a two-week truce allowed for some stabilization following the sharp deterioration in March, the full reopening of the Strait of Hormuz failed to materialize, and Brent crude closed the month still at very elevated levels. This environment put inflation back at the center of the debate, with widespread upticks across major developed economies—particularly in the Eurozone, where CPI reached 3.0% driven by rising energy costs. Both the Fed and the ECB kept rates unchanged, albeit with a more cautious tone, confirming the cooling of rate-cutexpectations. In fixed income, the month saw partial stabilization, with improving credit spreads and a recovery across major indices, although yield curves remained under pressure due to inflation expectations, oil prices, and the influence of more hawkish central banks. Against this backdrop, the portfolio relied on convertibles,emerging market debt (in both Euro and local currency), and investment-grade corporate credit; these, alongside the dollar hedge, were the primary performance drivers, leading Class A to close the month with a return of +1.21%.

Exposure to local and sovereign emerging market debt was bolstered through purchases inHungary, the Czech Republic, and Brazil, while new positions in financial credit and convertibles were added. Concurrently, some sovereign debt positions were reduced to monetize part of the recovery. The main detractor from performance was duration hedging in both EUR and USD, during a month where yield curves continued to move higher.