Lumos Alpha Portfolio Update — October 2025

Quant Portfolio I

In October 2025, Lumos Alpha’s Quant Portfolio I executed two algorithmic trades and delivered a total monthly return of 7.09%. The portfolio has produced a Year-to-date (YTD) return of 43.3%.

Quant Portfolio II

Quant Portfolio II executed three algorithmic trades in October and achieved a monthly return of 10.73%. This portfolio has generated a YTD return of 66.7%.

Flagship Portfolio

The Lumos Alpha Flagship Portfolio returned 2.78% in October 2025, bringing its YTD performance to 18.9%. While its October performance was slightly ahead of the S&P 500 index fund, the overall result remained below our expectations. This is due to two factors:

1. Value vs. Growth Spread

   Over the past several months, value stocks have materially underperformed growth stocks. The Flagship Portfolio currently maintains a little heavy allocation to value stocks, which has been a drag on relative performance.

2. Normal Stock Volatility

   A small number of holdings experienced short-term price weakness. We view this as normal market volatility rather than a reflection of deterioration in the underlying business models or earnings power of those companies. For that reason, our view on these positions remains constructive, and we encourage Flagship Portfolio clients to stay patient.

   
   

In October, we implemented tactical adjustments consistent with our previously communicated plan. The Flagship Portfolio exited one growth position and two value positions. A portion of the released capital was used to add to existing growth holdings. The majority of the freed capital was reallocated to the Quant Portfolio I strategy. As of the end of October, 28% of Flagship Portfolio capital is now being deployed through the Quant Portfolio I strategy.

In November we will continue to reduce select individual equity positions and increase the capital allocated to Quant Portfolio I.