WHG Up 19% In 2026 With Gains On These Crypto Shorts

WHG Global LB Fund’s commentary for the month ended February 28, 2026.

Read more hedge fund letters here

Performance

• February: +3.0%
• YTD: +18.8%
• ITD: +159.5%

Monthly Commentary

February was marked by a meaningful shift in leadership and a significant rise in dispersion. The AI trade, which had driven gains since the start of the year, came under pressure as the market grew more cautious on monetization and capex sustainability, with semiconductors, software, and mega-cap tech selling off meaningfully. Volatility rose even as macro sensitivity faded, with idiosyncratic factors increasingly driving returns rather than top-down forces. In contrast, energy held up on escalating US-Iran tensions, while utilities and materials led the defensive rotation toward month-end. Credit showed early signs of stress and the 10-year Treasury pulled back below 4%, reinforcing the more cautious tone into the close. On the policy front, the Supreme Court’s IEEPA ruling was quickly followed by new tariffs under Section 122, adding noise to the trade backdrop. The macro environment offered little relief, with core PCE tracking above 3% and the Fed maintaining a higher-for-longer stance. Overall, February reflected a less complacent market, more sensitive to financial conditions, more selective across themes, and with significantly wider dispersion between sectors and regions than the months prior.