๐ข ๐ผ๐-๐๐ค๐ฌ๐๐ง๐๐ ๐๐ค๐ง๐ฉ๐๐ค๐ก๐๐ค ๐๐๐ฃ๐๐๐๐ข๐๐ฃ๐ฉ ๐ @Sharia-AIGrowth
Global equity markets have been heading downward in light of concerns over a US-led trade war and other policy uncertainties. Starting in mid-February, the ๐ผ๐ง๐๐๐๐จ๐ฆ๐ช๐ ๐ผ๐ ๐๐ฃ๐๐๐ฃ๐ sharply pivoted towards underweighting Technology stocks, which have fared noticeably worse than other sectors during the downturn.
๐ All the Arabesque funds leverage our proprietary AI forecasting engine which produces daily stock-level predictions of price movements, ingesting tens of billions of data points into an extensive pipeline of both supervised and unsupervised machine learning model architectures to learn and capture the complex relationships between companiesโ financial characteristics, prevailing macro conditions, and the effect on security prices.
โก ๐๐๐ ๐ผ๐ ๐๐ฃ๐๐๐ฃ๐ ๐ฌ๐๐จ ๐๐๐ก๐ ๐ฉ๐ค ๐ง๐๐๐ค๐๐ฃ๐๐ฏ๐ ๐ฉ๐๐ ๐๐ฃ๐๐ง๐๐๐จ๐๐ ๐ข๐๐ง๐ ๐๐ฉ turbulence and correctly identify the sectors and defensive characteristics that were likely to outperform in such a potential โrisk-offโ market climate. The most prominent of these sector bets turned out to contribute positively to strong fund performance from February to present day; global technology stocks underperformed broad market indexes while defensive sectors like consumer outperformed.
This favorable sector positioning is very clear in all our funds. In the case of the Islamic funds where Financials are absent, the underweighting of Technology and overweighting of Consumer names impacted performance positively. This โflight to qualityโ phenomenon can also be seen in some of the AIโs country positioning recently, choosing to increase exposure to traditional safe-haven countries like Switzerland, and this too has benefitted performance.
In terms of individual positions, the biggest contributor was the AI choosing to underweight Tesla by an average of -1.5% versus the benchmark. Large underweights in Microsoft, Apple, and TSMC also contributed to the outperformance.
Additionally the flexible allocation funds, which began February with around 10% cash, ๐๐ก๐๐๐ง๐ก๐ฎ ๐ง๐๐จ๐ฅ๐ค๐ฃ๐๐๐ ๐ฉ๐ค ๐ฉ๐๐ ๐๐ฃ๐๐ง๐๐๐จ๐๐ ๐๐ฃ ๐ช๐ฃ๐๐๐ง๐ฉ๐๐๐ฃ๐ฉ๐ฎ ๐๐ฎ ๐๐ง๐๐๐ช๐๐ก๐ก๐ฎ ๐๐ฃ๐๐ง๐๐๐จ๐๐ฃ๐ ๐๐ฉ๐จ ๐๐๐จ๐ ๐ฅ๐ค๐จ๐๐ฉ๐๐ค๐ฃ ๐ฉ๐๐ง๐ค๐ช๐๐ ๐ฉ๐๐ ๐ข๐ค๐ฃ๐ฉ๐ ๐ฉ๐ค ~๐ฎ๐ฌ% ๐๐๐จ๐ ๐๐ช๐ง๐ง๐๐ฃ๐ฉ๐ก๐ฎ.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Thu Oct 15 2026 04:49:56 GMT+0000 (Coordinated Universal Time)
