Prosper Stars & Stripes Fund

Investment rationale

This sub-fund is intended to increase the value of an investment over the long term and has a recommended holding period of at least 4 years. It provides exposure to North American small- and mid-cap equities through a long/short approach, with a stated focus on U.S. mid and small caps under $10 billion market capitalisation. It is available to retail investors with basic financial knowledge and professional investors who meet the criteria for the share class, and is intended for investors seeking growth, exposure to developed equity markets, and who can tolerate substantial loss. In June 2026, the fund was not approved by FINMA for public retail distribution in Switzerland. Its use as a long/short small- and mid-cap equity vehicle makes it a distinct choice for investors wanting targeted exposure rather than a broad market-only allocation.

2026-06-30

How the strategy works

The objective is to increase the value of the investment over the long term, and the strategy seeks compelling annualised returns with low volatility through disciplined risk management and a fundamental long/short equity approach. Under normal market conditions, the sub-fund invests primarily in small- and mid-cap company shares in North America, with a focus on U.S. mid and small cap equities. It may use derivatives to hedge against market fluctuations, reduce costs or generate additional revenue, and the share class is an accumulation share in USD. The fund is managed without reference to an index, although the Russell 2000 and a 40% Russell 2000 proxy have been used indicatively for comparison since Roubaix Capital took over management on 7 May 2015.

2026-06-30

Investment philosophy

• The investment universe is primarily North American small- and mid-cap equities, with a focus on U.S. mid and small caps with market capitalisation under $10 billion.

• The sub-fund is actively managed, and the manager uses market analysis to select securities believed to have above-market growth potential within a fundamental long/short equity approach.

• Risk management is explicitly part of the stated philosophy, and derivatives may be used to hedge market fluctuations, reduce costs, or generate additional revenue.

• At the end of June 2026 the portfolio held 50 long positions and 61 short positions, with gross exposure of 138.9% and net exposure of 46.1%; long exposure was 92.5% and short exposure was -46.4%.

• Positioning at 30 June 2026 was concentrated in Industrials, Health Care and Information Technology on the long side, and the largest disclosed long holdings were Sensient Technologies, Alpha Teknova, BioLife Solutions, Agilysys and Dorman Products; the largest aggregate short-sector exposures were Information Technology, Industrials and Consumer Discretionary.

2026-06-30

Management team

The fund manager is Roubaix Capital, and the strategy is led by portfolio manager Christopher Hillary. Roubaix Capital has 7 professionals, with 3 analysts dedicated to the Roubaix sole strategy. PROSPER Stars & Stripes has replicated the Roubaix Capital strategy under the UCITS format since 7 May 2015.

2026-06-30

Distinctive features

The fund combines a UCITS structure with a specialised long/short strategy focused on U.S. mid- and small-cap equities. The portfolio is built with both long and short books and broad sector participation, rather than a long-only market exposure. Daily dealing is available on Luxembourg business days, with CACEIS Bank Luxembourg Branch as custodian.

2026-06-30

Risks

The fund has a risk indicator of 4 out of 7, and poor market conditions are very likely to reduce the value of the investment. Equity investments have higher volatility and risk than bonds and money market instruments, and the strategy invests primarily in small- and mid-cap equities while also using a long/short structure and derivatives. Additional risks include currency risk when the investor's currency differs from the share class currency, as well as counterparty, liquidity and operational risks that may be magnified in unusual market conditions or unforeseeable events. Heavy redemption activity can delay processing of sell orders. The manager does not systematically integrate ESG factors and may invest in issuers with a low ESG profile; the product is classified as SFDR Article 6.

2026-06-30

Asset manager

The fund is a sub-fund of PROSPER FUNDS SICAV, with CA Indosuez Fund Solutions S.A. as management company and product manufacturer; this firm is a subsidiary of CA Indosuez Wealth (Europe). The investment manager is Roubaix Capital LLC. In June 2026, Roubaix Capital was based in Denver, Colorado, and had 7 professionals, of whom 3 analysts were dedicated to the Roubaix sole strategy. Fund assets at 30 June 2026 were USD 181 million, and the vehicle is a Luxembourg SICAV UCITS V registered in Luxembourg.

2026-06-30

Performance commentary

The manager comments that June 2026 featured mixed U.S. equity markets, with tension between the AI trade and the rest of the market. Semiconductors were especially strong, while the equal-weighted S&P 500 outpaced the cap-weighted index, which the manager described as market broadening. The portfolio's monthly drivers were gains from the long book partly offset by losses in the short book, with Industrials and Information Technology as the best-performing sectors and Real Estate as the laggard.

2026-06-30