PAM MFSP Weekly Update – 6 November 2026

Performance Overview

For the week ended 6 November 2026, MFSP Class A and B posted weekly performances of -13.80% and -13.94%, respectively. Month-to-date returns stood at -13.80% and -13.94%, while year-to-date return -9.55% and -11.14%.

Sector Analysis

Energy: The energy sector was by far the largest detractor over the week, as long positions in Dutch Ttf natural gas, Brent crude oil, Wti light sweet crude oil, Phelix DE baseload power, Coal Api 2, and Nordic base yearly (enext) all lost ground. Energy prices fell sharply as hopes for U.S.-Iran peace talks and the U.S. midterm election results, in which Democrats won control of Congress, reduced the geopolitical risk premium in oil.

Metals: Metals were the third-largest detractor over the week, as losses elsewhere in the sector outweighed a gain from a long platinum position.

Agriculturals: The agricultural sector detracted over the week, as losses from long soybeans, long sugar No.11, and long European rapeseed positions outweighed gains from short Chicago soft red winter wheat, short Kc hard red winter wheat, short corn, and short lean hogs positions.

Interest Rates: Interest rate positions detracted modestly over the week, as gains from a short Australian 90-day bank bill position and a long Euro-buxl position were more than offset by losses elsewhere in the sector.

Foreign Exchange: Currency positions detracted marginally over the week, as gains from short New Zealand dollar/usd and short Japanese yen/usd positions were outweighed by losses elsewhere in the sector.

Equities: Equities also a significant detracted over the week, led by a loss from longs in U.S. and Taiwan equities.

U.S. and Taiwan Equity Portfolio

The U.S. and Taiwan equity positions experienced a notable pullback over the week. The Nasdaq Composite fell 3.4% and the S&P 500 fell 2.7%, while the Philadelphia Semiconductor Index fell more than 12%, with most of the loss on 5 November, one of the index's worst days on record. The sell-off followed the U.S. midterm elections, as investors began weighing the potential impact of local and state restrictions on new AI data centers on future demand for chips and memory, and reassessed richly valued AI-related stocks. Micron, AMD, and Nvidia fell roughly 22%, 11%, and 9%, respectively. Taiwan equities followed. The TAIEX fell about 12% over the week, from 45,212 to 39,702, with a record intraday point decline on 6 November, amid heavy foreign selling and the unwinding of margin positions.



Outlook

We view the equity pullback as driven largely by policy uncertainty and a valuation reset after a strong run, rather than by a change in the underlying AI investment cycle, which remains in place. Margin deleveraging in Taiwan and the sharp sell-off in leading semiconductor names are helping to clear speculative positioning, and upcoming semiconductor earnings and clarity on data center policy should help the market regain direction. Short-term volatility is likely to persist, and we will continue to monitor these developments closely.