February 2026 Commentary

The Series F of the Forge First Conservative Alternative Fund returned 2.27% in February, while the Series F of the Forge First Long Short Alternative Fund returned 2.99% over the same time period, both net of fees. The difference between the two is largely reflected by higher relative exposure levels in the Long Short Alternative Fund, offset by positive performance from credit strategies in the Conservative Alternative Fund. Beta-adjusted net equity exposure was 23% in the Conservative Alternative Fund and 41% in the Long Short Alternative Fund at month-end. Net credit exposure was 30% in the Conservative Alternative Fund and remained at 0% for our Long Short Alternative Fund. Beta-adjusted net equity exposure was approximately 14% and 23% lower in each respective fund since January month-end. The reduction in exposure reflects long sales across equity positions in most sectors. Performance in February was led by attribution from the Consumer, Industrials, Energy, Real Estate and Materials sectors. The Technology sector detracted from performance, as did equity index hedges. Alpha during earnings season was strong in February across long and short equity positions. Long exposure to value and revisions factors, as well as cyclical sectors benefited performance. We discuss updates on key attribution drivers in the month of February below.

Continue Reading…