Resources & Investment Updates From Komara Capital Partners

In investing, uncertainty isn’t a bug — it’s a feature.

No matter how much data we gather or how many historical patterns we study, markets have a way of surprising even the most seasoned observers. The challenge isn’t in predicting these surprises; it’s in expecting and preparing for them.

At Komara Capital Partners, we believe the best defense against uncertainty isn’t complexity, but simplicity. Rather than layering on endless rules to account for every possible market twist, we focus on the few relationships that have demonstrated durability over time. One of the most reliable patterns we observe is the clustering of volatility — the idea that extreme moves, both up and down, often come in waves.

April provided a vivid reminder of this phenomenon, as sharp declines and dramatic rallies unfolded within days of each other. Moments like these reinforce why our systematic investing approach emphasizes trend direction, not short-term prediction. It’s not about avoiding every bump; it’s about consistently adapting to the environment, reducing risk when conditions warrant, and positioning for long-term compounding.

In this Investment Update, we explore how April’s market behavior illustrated the power — and necessity — of simplicity, discipline, and flexibility in portfolio management.

But first, here’s a summary of the global asset classes utilized in our portfolios and their exposures for May.

Not all threats are created equal. Two situations might look similar on the surface, but that doesn’t mean they should be treated the same. 

This principle is especially true in markets, where risks can appear familiar but behave very differently based on what came before.

This is where a systematic investing process can show its strength. Rather than treating every downturn the same, it adapts to context — recognizing when a pullback is just noise versus when it might be the start of something more serious. That adaptability is especially relevant now, as recent signals have led our systems to reduce exposure to U.S. equities.

In this month’s Note, we revisit two market corrections that looked nearly identical in speed and magnitude — but triggered opposite portfolio responses. The difference wasn’t in the outcome; it was in the setup. And that distinction is exactly why we follow process over prediction.

But first, here’s a summary of the global asset classes utilized in our portfolios and their exposures for April.