16. April 2026 Zelos Ridgeline

April marked a meaningful reversal from March. Global equity markets rebounded strongly, led once again by large-cap technology names. In many cases, this move erased most, if not all, of the prior month’s pullback.On the surface, this looks constructive. Underneath, however, the structure of the rally tells a more nuanced story.Market leadership, which had begun to broaden earlier in the year, has narrowed once again. The top 10 constituents in the S&P 500 now represent over 38% of the index, a level of concentration that continues to climb. While these companies are undeniably high quality, this degree of dominance introduces a different type of risk: outcomes increasingly tied to a small group of names.For investors, this raises an important question: What are you really exposed to when you own “the market”?In this environment, the Zelos model portfolios delivered positive results across all mandates, returning approximately 1.1% to 3.8% in April.While it is easy to anchor on headline index returns, we believe context matters:Equity markets were strong, but leadership was concentratedFixed income remained relatively subduedAlternative asset classes continued to provide differentiated return streamsThe portfolios participated in the recovery, while maintaining a balanced exposure across multiple return drivers. We recognize that this approach is not for everyone.There will always be strategies that outperform in environments where a single factor, sector, or group of stocks dominates returns. But those same environments often carry hidden risks that only become visible over time.For investors who value:Active managementA risk-aware approachInstitutional-style diversificationThere tends to be strong alignment with how we think about capital.