DH Global Investment (hereinafter referred to as DHGI), a sub-fund of DH International Strategies Fund VCC managed by DH Wealth Management, has recently released its latest operational update. As a global multi-asset fund focusing on US equity long-short strategies, DHGI has demonstrated outstanding risk resilience and robust net asset value (NAV) growth amid the recent volatile market conditions.

Risk Control First, Building a Moat for Net Asset Value

At end-February 2026, the fund was in the early stage of strategy transition and position building, when geopolitical risks flared up and triggered sharp swings across global equity markets. Faced with this temporary force majeure, the DHGI team adhered to the core principle of risk control prioritization. By maintaining prudent position sizing and implementing disciplined trading operations, the fund successfully weathered irrational market declines. Its downside risk management outperformed peer strategies substantially, reflecting the prudence and accountability of a professional asset management firm.

Strategy Delivers Results, Pushing NAV to New Highs

• Steady Growth: The fund posted a solid return of 4.75% in April, achieving a rapid recovery and breakthrough in net asset value.

  Strong Surge: Strategy performance peaked in May, delivering an impressive monthly return of 8.30% with long strategies standing out remarkably.

• Back-to-back strong monthly returns fully offset minor fluctuations during the initial position-building phase and drove the fund’s NAV to a record high, bringing the cumulative return to 10.75%.

Favorable Risk-Reward Profile with a Sharpe Ratio of 2.18

High Win Rate & Smooth Holding Experience: Positive return periods accounted for 57.50% of the observation window, with an average daily downside deviation of merely 0.54%. The fund’s features of low volatility and high returns enable investors to hold positions with great ease.

Steady AUM Growth & Long-Term Value Creation

Solid and resilient performance has earned wide recognition and trust from investors. As of end-May 2026, the fund’s Assets Under Management (AUM) has grown steadily to approximately USD 27.11 million.

Trader’s Insights

In May 2026, the market rally followed a clear theme: companies with more predictable earnings outperformed, demand for AI infrastructure continued to be validated, and geopolitical risks eased notably. Major indices posted solid gains: SPY rose 6.3%, QQQ 11.6%, RSP 4.2% and IWM 6.7%. Despite the strong headline index performance, market breadth remained uneven. Technology stocks were the primary driving force, with XLK surging 20.1%. In contrast, energy stocks lagged sharply; XLE fell 4.6% amid sliding oil prices, while USO tumbled 14.3%.

We maintain a cautiously bullish stance on the market and advise against overly aggressive positioning. The rally is underpinned largely by solid earnings from AI infrastructure and software firms, yet it is not driven purely by fundamentals. Short covering, options demand, ETF inflows and momentum trading have all amplified upside moves. While the market may rally rapidly, it also faces heightened risks of sharp pullbacks should AI capital expenditure, enterprise software demand, geopolitical tensions or oil prices deteriorate.

Multiple key factors interacted throughout the month. Sustained momentum in AI infrastructure spending bolstered growth stocks. De-escalation in Iran and lower oil prices eased inflationary and geopolitical concerns. Nevertheless, narrow market breadth indicated the rally was concentrated in a handful of strong sectors, while software and cybersecurity stocks started to catch up. In short, the market continues to assign valuation premiums to growth and AI-related assets. Given the rally’s reliance on a small group of leading stocks, we advise against excessive position exposure.

On the portfolio front, we will retain core outperformers while adopting a prudent approach to new positions. We favour second-tier AI beneficiaries, including memory, storage, networking, data infrastructure, software and cybersecurity names. These segments boast visible demand drivers and do not rely solely on valuation expansion. We also keep an eye on consumer cyclicals benefiting from lower oil prices and opportunities tied to equal-weight indices amid potential market rotation. We will refrain from indiscriminate buying purely on index gains until meaningful improvement in market breadth is seen.

Risk management remains a top priority. Key risks include a slowdown in AI capital expenditure, a rebound in oil prices or geopolitical tensions, hawkish inflation and labour data, and weakening consumption weighing on the broader economy. The VIX dropped 9.8% in May, signalling the market is pricing in a low-volatility environment. We will maintain hedges during this period, particularly against crowded momentum names and semiconductor exposures.