AugurMax Asset Allocation Changes 2026-08-31
Equity exposure was raised quite a bit at the end of August as stocks around the globe continued their ascent — the equity adds were broad. VIX exposure moved down complimenting the upward move in the stock exposures. Stocks outperformed the other broad asset classes except commodities. Current stock exposures are well above their longer-term average. Bond exposures dropped precipitously and are well below their long-term average weighting. The prescribed Currency exposure fell marginally after a generally good showing in August. Commodity exposure was raised from a negative stance at the end of July and is above its longer term weighting.
Equity additions were widespread as US Large Cap, Canada, and the UK got the biggest raises. Japan and US Small caps were the only markets cut. The negative VIX exposure represents a positive bet on US equities. Interest sensitive US REITs were bumped up.
Withing the big push down in bonds, all but US Junk were reduced with TenYr Treasuries and JGBs being cut the most. Cash exposure was essentially unchanged.
There were quite a few shifts within commodities where Oil was brought down as Gold, NatGas, and Corn were pushed up.
Currency returns were up across the board in August as money continued to flow out of the US Dollar. The Canadian Dollar was cut big time while raises happened in the Euro and the Mexican Peso.
August’s global stock continued apace with strong showings in Japan and Emerging Markets. Growth stocks outperformed value after taking a beating in July as once again tech stocks took the lead. Bonds returns were mixed around the globe with US Junk the relative outperformer. Euro Bonds and JGBs fared the worst. US Treasuries performed in line with US Tips hinting at a less worrisome inflation situation (see breakeven inflation rates). US Large Caps are now more than 53% above their April 2025 lows (see worst drawdowns) and hedge funds reported mostly positive August returns. The prescribed changes herein are largely influenced by our ECO methodology. Performance results (on a stand-alone basis) for assets like Gold and others using our ECO metrics are shown here.
