Zurich-based firm cites narrow market rally and overvaluation of cyclical stocks for underperformance in its Focused Equity Strategy.
Emerald Wealth Partners reduced its position in Shell plc (SHEL) during Q2 2026, as its Focused Equity Strategy posted a 0.8% gross return. The firm attributed underperformance to avoiding low-quality, momentum-driven semiconductor stocks that drove benchmark gains this quarter.
Equity markets rebounded from Q1’s Iran-related volatility, but the rally remained concentrated in cyclical sectors. Emerald warned of late-cycle behavior, citing a US cyclically adjusted P/E ratio near 40 and peak-cycle earnings being treated as durable.
The strategy remains focused on enterprise infrastructure and digital platforms with long-term AI monetization potential, diverging from short-term market trends.