05.06.2025
News
Monthly Recap: May 2025
“Sell in May and go away?” Following that advice would have been expensive this year. US Large Caps just logged their strongest May in decades as tariff truces eased trade tensions and technology leadership re-emerged. Our strategies participated in the upswing while remaining disciplined on risk. The NDT US-Equities Momentum strategy returned +4.3%, delivering similar returns as its benchmark on a risk-adjusted basis, the NDT Global Multi-Asset Momentum strategy returned +3.5%, while outperforming its benchmark on both risk-adjusted and absolute terms.
Market Commentary
The S&P 500 returned +6.2%, which marked the best May since 1990, helped by temporary tariff pauses with China (12 May) and the EU (26 May).
Moody’s cut the U.S. sovereign rating to Aa1 (first downgrade since 1949) on deficit concerns.
Economic Policy Uncertainty Index hit a 35-year high.
The 1,116-page “Big Beautiful Bill” drew scrutiny and controversy around the globe.
Demand for US-Treasuries weakened: the May 20-year auction recorded the lowest bid-to-cover ratio since 2012.
U.S. consumer sentiment fell to its second-lowest reading on record, while 1-year inflation expectations reached their highest level since 1981.
The 90-day tariff reduction deal with China sparked a mid-month risk rebound.
10-year U.S. Treasury yield closed the month at 4.41%, after a volatile range.
The U.S. Dollar Index (DXY) signaled a modestly weaker dollar, as markets expect that the Fed is more likely to ease policy in coming months.
Bitcoin attracted a record $5.9bn in ETF inflows and reached a new all-time high.
Top 3 Performers - May 2025
Several holdings delivered standout returns in April for the NDT US-Equities Momentum strategy:
GE Vernova Inc. (+23.6%)
Investors piled into the spun-off energy unit after Q1 results showed a record order backlog. The management highlighted surging demand for gas turbines to power AI data-centres and renewables projects. Trump’s mid-May visit to Saudi Arabia, where new contracts were teased, added an extra catalyst.Axon Enterprise Inc. (+20.9%)
Q1 revenue rose 31% year-on-year, and the company lifted its full-year sales and profit outlook, underscoring strong demand for its Taser, body-camera and cloud-software platforms.MercadoLibre Inc. (+10.9%)
Latin America’s e-commerce and fintech leader beat earnings estimates by 27%. The company delivered a record quarterly revenue of US $5.9bn, driven by payments, logistics and advertising gains.
Last Month's Strategy Returns
NDT Global Multi Asset Momentum:
A strategy designed for long-term global growth with controlled risk, implemented through cost-effective ETFs.
Factsheet
Live Performance
NDT US-Equities Momentum:
A focused strategy offering a concentrated portfolio of large-cap US stocks with strong momentum, enhancing a portfolio’s performance potential.
Factsheet
Contact us
Momentum-Picks and Exposure in May
US Stock selection added value: If we had been fully invested (equity exposure in May was ~50%), the equity portfolio would have beaten the benchmark by roughly 1.1%, led by GE Vernova (+23.6%) and Axon (+20.9%). Texas Pacific Land (-14%) was the main drag, but the overall hit-rate remained positive.
Risk-adjusted terms: Using daily data for May, the NDT US-Equities Momentum strategy’s Sharpe ratio was broadly in line with the benchmark. The NDT Global Multi Asset Momentum strategy beat its benchmark this month by +0.3%.
Looking ahead: Our rule-based model has signaled an increased exposure for June.
For marketing purposes only. Advertising according to Art. 68 FinSA. All rights reserved.
Photo by Denis Linine
“Sell in May and go away?” Following that advice would have been expensive this year. US Large Caps just logged their strongest May in decades as tariff truces eased trade tensions and technology leadership re-emerged. Our strategies participated in the upswing while remaining disciplined on risk. The NDT US-Equities Momentum strategy returned +4.3%, delivering similar returns as its benchmark on a risk-adjusted basis, the NDT Global Multi-Asset Momentum strategy returned +3.5%, while outperforming its benchmark on both risk-adjusted and absolute terms.
Market Commentary
The S&P 500 returned +6.2%, which marked the best May since 1990, helped by temporary tariff pauses with China (12 May) and the EU (26 May).
Moody’s cut the U.S. sovereign rating to Aa1 (first downgrade since 1949) on deficit concerns.
Economic Policy Uncertainty Index hit a 35-year high.
The 1,116-page “Big Beautiful Bill” drew scrutiny and controversy around the globe.
Demand for US-Treasuries weakened: the May 20-year auction recorded the lowest bid-to-cover ratio since 2012.
U.S. consumer sentiment fell to its second-lowest reading on record, while 1-year inflation expectations reached their highest level since 1981.
The 90-day tariff reduction deal with China sparked a mid-month risk rebound.
10-year U.S. Treasury yield closed the month at 4.41%, after a volatile range.
The U.S. Dollar Index (DXY) signaled a modestly weaker dollar, as markets expect that the Fed is more likely to ease policy in coming months.
Bitcoin attracted a record $5.9bn in ETF inflows and reached a new all-time high.
Top 3 Performers - May 2025
Several holdings delivered standout returns in April for the NDT US-Equities Momentum strategy:
GE Vernova Inc. (+23.6%)
Investors piled into the spun-off energy unit after Q1 results showed a record order backlog. The management highlighted surging demand for gas turbines to power AI data-centres and renewables projects. Trump’s mid-May visit to Saudi Arabia, where new contracts were teased, added an extra catalyst.Axon Enterprise Inc. (+20.9%)
Q1 revenue rose 31% year-on-year, and the company lifted its full-year sales and profit outlook, underscoring strong demand for its Taser, body-camera and cloud-software platforms.MercadoLibre Inc. (+10.9%)
Latin America’s e-commerce and fintech leader beat earnings estimates by 27%. The company delivered a record quarterly revenue of US $5.9bn, driven by payments, logistics and advertising gains.
Last Month's Strategy Returns
NDT Global Multi Asset Momentum:
A strategy designed for long-term global growth with controlled risk, implemented through cost-effective ETFs.
Factsheet
Live Performance
NDT US-Equities Momentum:
A focused strategy offering a concentrated portfolio of large-cap US stocks with strong momentum, enhancing a portfolio’s performance potential.
Factsheet
Contact us
Momentum-Picks and Exposure in May
US Stock selection added value: If we had been fully invested (equity exposure in May was ~50%), the equity portfolio would have beaten the benchmark by roughly 1.1%, led by GE Vernova (+23.6%) and Axon (+20.9%). Texas Pacific Land (-14%) was the main drag, but the overall hit-rate remained positive.
Risk-adjusted terms: Using daily data for May, the NDT US-Equities Momentum strategy’s Sharpe ratio was broadly in line with the benchmark. The NDT Global Multi Asset Momentum strategy beat its benchmark this month by +0.3%.
Looking ahead: Our rule-based model has signaled an increased exposure for June.
For marketing purposes only. Advertising according to Art. 68 FinSA. All rights reserved.
Photo by Denis Linine