Crescat’s year-to-date performance through September across all our funds reflects the strength of our investment themes and the conviction behind them.
Rankings are versus all 1,985 hedge funds in the Preqin database and YTD performance updated through September 2025 as of 10/28/2025. Past performance does not guarantee future results. Investing involves risk including risk of loss. *See additional disclosures below.
We believe the opportunity ahead of us remains substantial, with the current environment favoring our two largest themes firmwide:
- Activist Precious and Critical Metals Mining – A strategy we express on the long side across all five Crescat funds via a portfolio of undervalued, high-growth, predominantly exploration-and-development-stage miners.
- The US Stock Market Historic Valuation Bubble – A Black Swan-style put option strategy, which we are currently expressing in our Global Macro, Long/Short, and Institutional Macro funds, alongside the long metals’ exposure. We believe broad retail investor mania over artificial intelligence, mega-cap tech, and cryptocurrencies poses extraordinary risk to investors. Now, more than ever, we think it is a prudent time to employ this put option strategy.
Our activist metals strategy has been the primary driver of performance across all Crescat funds year-to-date. For those who have been watching from the sidelines and missing out, the sharp but likely temporary pullback in October month-to-date across the metals complex is creating what we think is an attractive setup for new investors looking to get exposure to Crescat’s highly differentiated funds for the current monthly investment window ending October 31. We continue to view turbulence as an opportunity rather than a threat to the core themes across our funds.
Crescat Precious Metals and Institutional Commodity Funds
Crescat’s in-depth bottom-up valuation model, combined with our macroeconomic analysis, gives us high conviction that it is still early in a long and powerful multi-year cycle for precious and critical metals miners.
The Crescat Precious Metals and Institutional Commodity Funds are fully dedicated to capitalizing on this theme. Our activist metals strategy has been focused on helping to create some of the largest and most commercially viable gold, silver, and copper discoveries worldwide. We believe we have built an expertly crafted, deeply undervalued, high-growth portfolio tailored for the current macro environment.
In more than five years since its inception in August 2020 through September 30, 2025, the Crescat Precious Metals Fund has significantly outperformed all the major mining and metals benchmarks, as we show in the chart below. It is also the second-best-performing sector-focused hedge fund among all 131 such funds across all sectors in the Preqin database over that time frame.
*See important disclosures below. Past performance does not guarantee future results. Investing involves risk including risk of loss.
Crescat’s Macro and Long-Short Funds
In our Global Macro, Institutional Macro, and Long Short funds, we are also strategically positioned on the short side for a megacap-led market meltdown caused by overcrowding, excessive leverage, and record-high valuations. Aggressive insider selling and market divergences are signaling a potential near-term S&P 500 and Nasdaq 100 market top. We encourage prospective investors in our macro and long-short funds to consider these funds’ downside capture ratios, a measure of performance in down markets, which are among the top in the hedge fund industry.
High Absolute Return and Negative Downside Capture
Crescat Global Macro Fund will have a 20-year track record at the end of this year. This fund has both the highest absolute return and top downside capture ratio among all discretionary global macro funds in the eVestment database since its inception.
We encourage you to reach out to Marek Iwahashi, Head of Investor Relations, via email at miwahashi@crescat.net or by phone at (720) 323-2995 if you are interested in getting positioned in our funds for the current monthly window.
Sincerely,
Kevin C. Smith, CFA
Founding Member & Chief Investment Officer
Tavi Costa
Member & Macro Strategist
Quinton T. Hennigh, PhD
Member & Geologic and Technical Advisor
For more information, including how to invest, please contact:
Marek Iwahashi
Head of Investor Relations
miwahashi@crescat.net
(720) 323-2995
Linda Carleu Smith, CPA
Co-Founding Member & Chief Operating Officer
lsmith@crescat.net
(303) 228-7371
© 2025 Crescat Capital LLC
Important Disclosures
Discussion and details provided are for informational purposes only. This letter is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy any security, services of Crescat, or its Funds. The information provided in this letter is not intended as investment advice or recommendation to buy or sell any type of investment, or as an opinion on, or a suggestion of, the merits of any particular investment strategy. This letter may contain certain forward-looking statements, opinions and projections that are based on the assumptions and judgments of Crescat with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Crescat. Because of the significant uncertainties inherent in these assumptions and judgments, you should not place undue reliance on these forward looking statements, nor should you regard the inclusion of these statements as a representation by Crescat that these objectives will be achieved.
CPM has not sought or obtained consent from any third party to use any statements or information indicated herein that have been obtained or derived from statements made or published by such third parties.
All content posted on CPM’s letters including graphics, logos, articles, and other materials, is the property of CPM or others and is protected by copyright and other laws.
Ranking data shown is generated by Preqin, a leading provider of data and intelligence for the alternative assets industry. Fund managers, including Crescat, report their performance information to Preqin. Crescat pays an annual fee to Preqin to have access to the database, which gives us the ability to generate this report. No award or ranking should be construed as a guarantee that you will experience a certain level of results, nor should it be construed as a current or past endorsement of Crescat. Additional performance information can be found on Crescat’s website here: https://www.crescat.net/performance/
Performance
Performance data represents past performance, and past performance does not guarantee future results. Performance data, including Estimated Performance, is subject to revision following each monthly reconciliation and/or annual audit. Individual performance may be lower or higher than the performance data presented. The currency used to express performance is U.S. dollars. Before January 1, 2003, the results reflect accounts managed at a predecessor firm. Crescat was not responsible for the management of the assets during the period reflected in those predecessor performance results. We have determined the management of these accounts was sufficiently similar and provides relevant performance information.
*Performance figures presented represent the fund’s net returns calculated without the impact of the San Cristobal Mining, Inc. (SCM) Side Pocket that was designated on July 1st, 2024. The SCM Side Pocket includes a private equity asset that is not available to new investors in the funds on or after July 1, 2024. This asset was included in the fund performance prior to that date. Excluding the SCM Side Pocket after that date provides a clearer view of the performance to investors coming into the funds after July 1, 2024. New investors cannot participate in the SCM Side Pocket and will not share in its potential gains or losses. Investors should consider both the overall performance and the performance excluding the side pocket when evaluating the fund’s returns.
Benchmarks
PHILADELPHIA STOCK EXCHANGE GOLD AND SILVER INDEX. The PHLX Gold/Silver Sector Index (XAU) is a capitalization-weighted index composed of companies involved in the gold or silver mining industry. The Index began on January 19, 1979.
S&P 500 INDEX. The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization.
S&P Select Industry Indices are designed to measure the performance of narrow GICS® sub-industries. The Metals and Mining Select Industry Index comprises stocks in the S&P Total Market Index that are classified in the GICS Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Mining, Silver and Steel sub-industries.
References to indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only. Reference to an index does not imply that the fund or separately managed account will achieve returns, volatility or other results similar to that index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking.
Hedge Fund disclosures: Only accredited investors and qualified clients will be admitted as limited partners to a CPM hedge fund. For natural persons, investors must meet SEC requirements including minimum annual income or net worth thresholds. CPM’s hedge funds are being offered in reliance on an exemption from the registration requirements of the Securities Act of 1933 and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. The SEC has not passed upon the merits of or given its approval to CPM’s hedge funds, the terms of the offering, or the accuracy or completeness of any offering materials. A registration statement has not been filed for any CPM hedge fund with the SEC. Limited partner interests in the CPM hedge funds are subject to legal restrictions on transfer and resale. Investors should not assume they will be able to resell their securities. Investing in securities involves risk. Investors should be able to bear the loss of their investment. Investments in CPM’s hedge funds are not subject to the protections of the Investment Company Act of 1940.
Those who are considering an investment in the Funds should carefully review the relevant Fund’s offering memorandum and the information concerning CPM. For additional disclosures including important risk disclosures and Crescat’s ADV please see our website: https://www.crescat.net/due-diligence/disclosures/