Executive summary
Equities drifted through the third quarter while bonds did the damage. The S&P 500 added 2.0% and Euro Stoxx gave back 0.9%, both modest moves. U.S. and European sovereign bonds sold off more sharply as yields reset higher, and gold’s 10.1% August surge gave back two thirds of itself in a single September move. Fenyx Capital finished the quarter down 2.4%, with the bond side of the basket doing most of the damage and gold’s reversal removing what partial offset it had provided.
Q3 results
Monthly breakdown
| Asset | Jul | Aug | Sep | Q3 |
|---|---|---|---|---|
| S&P 500 | -0.1% | +2.6% | -0.5% | +2.0% |
| Euro Stoxx | +0.5% | +1.0% | -2.4% | -0.9% |
| 10-Year Treasury | -0.1% | -2.8% | -0.6% | -3.5% |
| Euro Bund | -0.9% | -2.0% | 0.0% | -2.9% |
| Gold | +0.9% | +10.1% | -6.7% | +3.7% |
| Fenyx Capital | -0.9% | +2.7% | -4.1% | -2.4% |
Key takeaways
- Sovereign bonds led the quarter’s losses. U.S. 10-Year notes fell 3.5% and Euro Bunds fell 2.9% as yields on both sides of the Atlantic reset higher.
- Gold’s quarter was a round trip. A 10.1% August surge gave back two thirds of itself in a single September move, the sharpest reversal of any asset this quarter.
- Equities were comparatively calm. The S&P 500 added 2.0%; Euro Stoxx gave back 0.9%.
- Rising yields look like the common thread. Bond prices fell directly, and gold’s appeal as a non-yielding asset faded as real rates moved higher into September.
- Year to date, equities remain the clear leader. Both sovereign bond legs and gold are now negative for 2026, while the S&P 500 and Euro Stoxx are still comfortably ahead.
What this meant for Fenyx Capital
The strategy’s five components split three against two this quarter. The two bond legs, 10-Year Treasuries and Euro Bunds, posted the basket’s steepest losses and did most of the damage. Gold’s 3.7% quarterly gain offered only a partial offset, most of it earned in August and given back before quarter end. Equities were closer to neutral, with the S&P 500’s modest gain only partly compensating for Euro Stoxx’s decline. The combination left Fenyx Capital down 2.4% for the quarter and negative 2.5% for the year to date.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult with a financial advisor before making any investment decisions. Read our full disclaimer.
Photo by Kyle Glenn on Unsplash.
