| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
RGA Investment Advisors capitalized on one of the most extreme market environments in their professional careers during Q2 2026, when AI infrastructure stocks experienced unprecedented volatility and concentration. The AI Bottleneck 40 stocks reached nearly 60% realized volatility while going parabolic, creating market distortions reminiscent of 1999 that sucked oxygen out of the rest of the market. The manager actively exploited these dislocations by purchasing four new positions across their three-bucket framework: AI beneficiaries, AI losers, and companies far removed from AI. GitLab was bought as a covert AI beneficiary at sub-4x EV/sales despite per-seat pricing headwinds. Adobe was purchased at sub-10x P/E as an AI loser so cheap it will win, with the manager believing it will prove resilient and become a critical AI workflow layer. Adyen was added at mid-teens EV/EBITDA after shares fell on a 1% growth guidance miss, with competitive intensity waning in payments. Mips AB was bought at high-teens P/E with 30% growth, benefiting from e-bike tailwinds. These purchases were funded by selling Lattice Semiconductor, Disney, Workday, and trimming Alphabet. Roku was acquired by Fox Corp, with the manager likely holding FOXA shares for revenue synergies.
The manager is exploiting extreme market distortions created by AI infrastructure mania to purchase high-quality software and payments companies at compelling valuations, betting that fears around AI disruption are overblown and that these businesses will prove resilient while trading at depressed multiples.
The manager sees compelling opportunities created by AI-driven market distortions and valuation dislocations. They are optimistic about their recent purchases proving resilient and delivering strong returns as companies like Adobe demonstrate AI-era relevance and companies like Adyen benefit from reduced competitive intensity. The manager remains uncertain whether the extreme market tensions around AI concentration will reemerge but plans to revisit these themes over time.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 18 2026 | 2026 Q2 | ADBE, ADYEY, DIS, FOXA, GOOGL, GTLB, LSCC, MIPS-B.ST, ROKU, WDAY | AI, Market Concentration, payments, software, technology, valuation, volatility |
GTLB ADBE ADYEN.AS MIPS.ST |
RGA exploited extreme AI-driven market distortions in Q2 2026 to buy four mispriced companies at compelling valuations. GitLab, Adobe, Adyen, and Mips were purchased at depressed multiples as the AI Bottleneck 40 stocks went parabolic with 60% volatility, creating 1999-like conditions. The manager believes these high-quality businesses will prove resilient to AI disruption while trading at valuations pricing in permanent impairment. |
| Jun 10 2026 | 2026 Q1 | AMZN, GOOGL | AI, AWS, Cloud, Research Process, SaaS, software, technology | AMZN | RGA rebuilt its research process around AI tools in Q1 2026, expanding monitoring capacity without diluting attention quality. The manager is increasingly bullish on AWS as a beneficiary of AI workflow adoption, focusing on profit pools and platforms rather than infrastructure suppliers. They built a SaaS Risk Tracker that identified two new purchases while helping avoid value traps, and see meaningful opportunities in disciplined active management amid market dispersion. |
| Dec 9 2025 | 2025 Q3 | AAPL, AXP, COF, DFS, GOOGL, MA, NVDA, PLTR, V | AI, Banking, Concentration, healthcare, Networks, payments, Search, technology | - | Historic market concentration in mega-caps creates opportunities for active managers. Google evolved from AI threat to dominant integrated leader following regulatory clarity. Capital One's Discover acquisition transforms it into a major payments player with $1B+ synergies. Healthcare remains mispriced. Current environment rewards disciplined active management over passive approaches. |
| Aug 7 2025 | 2025 Q2 | AVGO, AWE.L, CRSP, FEVR.L, MTN, PTON, PYPL, ROKU, WDAY | Biotechnology, conviction, Enterprise Software, Fitness, Streaming, Trade Policy, volatility |
CRSP PTON WDAY ROKU FEVR PYPL AWE MTN |
RGAIA actively deployed capital during Q2 2025 volatility, adding three new positions in gene therapy leader CRISPR, fitness platform Peloton, and enterprise software provider Workday. Portfolio balances value and growth with asymmetric opportunities trading at attractive valuations. Life sciences momentum emerging while maintaining disciplined focus on businesses with durable advantages and strong balance sheets. |
| May 27 2025 | 2025 Q1 | AMZN, BRKR, DHR, ENTG, GOOGL, IAC, LULU, META, NKE, NVDA, TMO, TSM | AI, Athleisure, Biotechnology, Life Science, semiconductors, Taiwan, Trade Policy, uncertainty |
TSM BRKR LULU |
RGA capitalized on Q1 2025's historic policy uncertainty to invest in enduring themes: AI infrastructure through TSMC, life science innovation via Bruker, and global brand expansion with Lululemon. The firm's conviction-driven approach during market volatility reflects focus on businesses with competitive moats and secular growth drivers that persist regardless of short-term chaos. |
| Jan 27 2025 | 2024 Q4 | AMZN, AVGO, COST, DBX, DEO, GEV, NVDA, PLTR, TSLA, UBER, VST, WMT | AI, large cap, market breadth, rates, technology, valuation | - | RGA added Amazon, Diageo, and Uber at compelling valuations while market concentration reached Dot-Com levels. Amazon offers 4.5% free cash flow yield with e-commerce essentially free, Diageo trades at crisis-era multiples as growth reaccelerates, and Uber generates massive cash flow despite autonomous vehicle fears. Market imbalances create opportunity. |
| Sep 16 2024 | 2024 Q2 | MTN, PLAY | Biotechnology, consumer, Entertainment, large cap, small caps, value |
PLAY MTN |
RGA added Dave & Busters and Vail Resorts at attractive valuations despite consumer headwinds, viewing both as high-quality assets with compelling long-term prospects. The fund maintains biotech exposure through Sartorius while positioning for consumer normalization as rate cuts and lower oil prices provide relief to discretionary spending patterns. |
| May 23 2025 | 2024 Q1 | DHR, META, MRVI, MXCT, SRT3.DE | Biotechnology, Life Sciences, Portfolio Management, small caps, valuation |
META MRVI SRT3.DE |
RGA trimmed their large Meta position to fund substantial increases in life sciences small caps Maravai and Sartorius. Both companies offer exceptional margins and growth potential in mRNA technology and bioprocessing. The managers remain enthusiastic about small caps despite recent underperformance, positioning for clinical trial advancement and bioprocessing recovery over the next 2-3 years. |
| May 23 2024 | 2023 Q4 | META, MRVI, MXCT, SRT3.DE | Bioprocessing, Biotechnology, Life Sciences, mRNA, Portfolio Management, small caps, value |
ADI|BDX|FI|FND|HAS|META|MSFT|MSI|ORCL|TMO SRT3.DE |
RGA trimmed Meta to fund substantial increases in life sciences positions, particularly Maravai LifeSciences and new position Sartorius AG. Both companies offer critical bioprocessing infrastructure with exceptional margins and growth potential as mRNA therapies advance to clinical trials in 2025-2026. The fund maintains focus on small caps and life sciences with increasingly nimble position management. |
| May 25 2023 | 2023 Q1 | CTKB | Banking, Biotechnology, growth, small caps, value | - | Small caps offer exceptional value after five years of underperformance, with Russell 2000 generating zero returns while large caps soared. RGA built positions in quality names like Cytek Biosciences, a flow cytometry leader trading below intrinsic value despite technological advantages and strong fundamentals. Banking sector stress creates opportunities for selective small cap investors. |
| Jan 25 2023 | 2022 Q4 | AZO, FEVR LN, GOOG, MTCH, PYPL | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIThe manager discusses AI infrastructure bottleneck mania, where 40 stocks selling critical data center infrastructure experienced extreme volatility and decoupled from the broader market. The AI Bottleneck 40 reached nearly 60% realized volatility while going parabolic from April through July 2026, creating market distortions reminiscent of 1999. The manager is using AI tools like Claude to enhance their investment process and sees both opportunities and risks across AI beneficiaries, AI losers, and companies far removed from AI. |
Data Centers Semiconductors Infrastructure Volatility Software |
SoftwareThe manager made significant investments in software companies including GitLab and Adobe, viewing them as mispriced due to AI-related concerns. GitLab faces headwinds from per-seat pricing models as AI reduces technical headcount, but the manager sees compelling valuation at sub-4x EV/sales with high-teens growth. Adobe is viewed as an AI loser trading at sub-10x P/E with 10% FCF yield, but the manager believes it will prove resilient and become a critical layer for AI workflows given its data and context advantages. |
SaaS DevSecOps Enterprise Software Valuation Pricing Models | |
PaymentsThe manager purchased Adyen after shares declined precipitously over a 1% delta in growth guidance from 21-23% to 20-22%. The manager views Adyen as more than just software, highlighting its role as merchant acquirer and bank enabling swifter payouts, better authorization rates, and unified global analytics. Trading at mid-teens EV/EBITDA and P/E just north of 20x while growing upwards of 20%, the manager sees compelling value with competitive intensity waning in the payments space. |
Merchant Acquiring FinTech Payment Processing Growth Valuation | |
MediaRoku was acquired by Fox Corp on June 15th at $96 cash plus 0.9693 shares of FOXA per Roku share. The manager first bought Roku in late 2018 and describes it as a wild ride with solid overall returns but bittersweet feelings. The manager applauds Roku's execution in right-sizing costs, building ARPU strategy, and commencing share repurchases. The manager is likely to hold FOXA shares upon closing given enthusiasm around acceleration in Roku's growth and revenue synergies between the two assets. |
Streaming M&A ARPU Synergies | |
| 2026 Q1 |
AIThe manager describes Q1 2026 as Year Zero for their research process, rebuilding tools with and around Claude Code. AI has fundamentally changed the surface area of what they can monitor, test, and revisit, allowing them to track more companies and inputs without diluting attention quality. They emphasize AI as a force multiplier for human thought, not a replacement, and have built proprietary workflows integrating multiple LLMs for different tasks. |
Claude Code LLMs Workflow Automation Research Process Token Efficiency |
CloudThe manager is increasingly enthusiastic about AWS as a beneficiary of where AI workflows are heading, focusing on profit pools and platforms built on AI rather than infrastructure picks and shovels. AWS is uniquely positioned to benefit from a shift toward token efficiency and model-agnostic orchestration at scale. Amazon Bedrock can run multiple leading AI models, and AWS scale and cost per unit advantages position them to win as AI workflows mature. |
AWS Amazon Bedrock Model Orchestration Trainium Infrastructure | |
SaaSThe manager built a comprehensive SaaS Risk Tracker to identify software companies relatively inoculated from AI risk. The tracker combines quantitative and qualitative factors to score AI displacement risk, analyzes free cash flow quality, and mines transcripts for AI-related commentary. Since quarter-end, they purchased two companies where this tracker helped understand relevant risks, and it has prevented them from acting on other watchlist names. |
AI Risk Free Cash Flow Software Displacement Resilience | |
SemiconductorsThe manager believes the market is misplacing focus on companies seeing a surge in sales as hyperscalers build AI infrastructure. When capex inevitably levels off, growth will evaporate and margins will compress at suppliers, particularly Tier 2 suppliers. Companies building recurring revenues receive little attention amidst the hype, but these revenues compound at high incremental margins and will generate soaring free cash flow as growth slows. |
Hyperscalers Capex Infrastructure Nvidia Trainium | |
| 2025 Q3 |
AIAI is dominating market performance and sucking the air out of everything else. Google has evolved from facing an AI threat to becoming a dominant AI player with vertical integration advantages across semiconductors, hardware, models, consumer, and enterprise. The company's proprietary TPU chips and integration of AI into search positions it as a low-cost provider in the AI ecosystem. |
Artificial Intelligence Machine Learning Search TPU Gemini |
PaymentsCapital One's acquisition of Discover transforms it from a card issuer to a vertically integrated payments entity. The deal provides network ownership that allows COF to avoid Durbin Amendment constraints on debit interchange fees, potentially generating over $1 billion in network synergies by 2027. This positions COF as a major domestic payments player with American Express-like economics. |
Network Effects Interchange Debit Cards Financial Services | |
Market ConcentrationThe S&P 500 is experiencing historic concentration with the top 10 companies accounting for over 40% of the index weight. This creates performance challenges for active strategies and makes historical P/E comparisons less relevant. The equal-weighted S&P 500 provides a more accurate proxy for median stock performance than the cap-weighted index. |
Index Concentration Mega Cap Active Management Market Structure | |
| 2025 Q2 |
Gene TherapyCRISPR Therapeutics represents a first-mover advantage in cell and gene therapy with commercial approval of Casgevy. The company trades at a significant discount with strong cash position and pipeline optionality. Management has balanced capital discipline with R&D ambition, positioning the company to lean into its pipeline while competitors retrench. |
CRISPR Casgevy FDA Pipeline Cash |
FitnessPeloton has evolved into a cash-generative recurring revenue business with opportunities in strength training and nutrition expansion. The company can cut its way to success with improved marketing efficiency and potential for modest pricing power. Digital fitness platform with cult-like following and trusted instructor relationships. |
Digital Subscription Strength Nutrition Pricing | |
Enterprise SoftwareWorkday offers mission-critical HR software to Fortune 500 companies with expanding finance functions. New CEO Carl Eschenbach focuses on margin improvement and operational streamlining. Double-digit revenue growth with potential for significant earnings acceleration as margins expand. |
SaaS HR Finance Margins Fortune | |
StreamingRoku has increased device and household share covering over half of US households but faced ARPU challenges. Company abandoned walled garden strategy and opened to programmatic advertising, sharing data for better economics. Platform revenue growth accelerating with commitment to GAAP operating profit in 2026. |
CTV ARPU Advertising Programmatic Platform | |
| 2025 Q1 |
AIAI's march forward is relentless with strong value in companies enabling AI infrastructure buildout, particularly hardware. This momentum is insulated from macro and policy noise making it a true constant. Capital is flowing into this ecosystem at unprecedented speed with focus on firms having pricing power, mission-critical positioning, and scale to benefit from accelerating AI workloads globally. |
Infrastructure Hardware Workloads Datacenter Chips |
BiotechnologyLife Science is contending with severe COVID hangover compounded by concerns around NIH funding, FDA staffing, and drug pricing under Trump's policies. Despite this, the foundational importance remains unshaken as no sector is as mission-critical to life itself as healthcare. The sector stands to benefit enormously from AI through protein structure breakthroughs and next-gen CRISPR targeting. |
Healthcare NIH FDA Drug Pricing CRISPR | |
SemiconductorsTSMC demonstrates resilience in a challenged semiconductor landscape where AI segment flourishes while broader chip markets endure one of the worst recessions in industry history. The industry bifurcation creates opportunity as non-AI markets are near cyclical lows, positioning for recovery while AI datacenter buildouts continue unabated. |
Cyclical Foundries Advanced Nodes Datacenter Manufacturing | |
Trade PolicyTrump-era policy constants include uncertainty, change, and transactional lens applied to nearly every decision. Markets braced for global tariff regime with unclear scope and implementation. Economic Policy Uncertainty reached historic highs, weighing heavily on markets through March and culminating in worst 3-day stretch since 1987 crash. |
Tariffs Uncertainty Negotiations Policy Volatility | |
AthleisureLululemon maintains relevance despite increased competition from upstarts like Vuori, Alo and Fabletics who have won share with faster fashion and cheaper prices, predominantly from Nike. Lulu's core performance segment remains unquestioned with demonstrable quality advantage in proprietary fabrics, while expanding geographically to China and Europe. |
Competition Fashion Performance China Expansion | |
| 2024 Q4 |
AIAI enthusiasm drove significant gains in 2024, with AI names like Nvidia, Broadcom, and Palantir among the top performers. AI fueled gains extended to companies like Vistra Corp and GE Vernova on expectations that datacenter investments will require acceleration of power supply development. AWS is investing aggressively to adapt its infrastructure from CPU-optimized to GPU-dominant for AI demands. |
Data Centers Semiconductors Cloud Infrastructure |
E-commerceAmazon's e-commerce segment invested aggressively in fulfillment center capacity during COVID ahead of demand, consuming cash-generating potential but creating the most defensible business in the world. The timing of waning e-commerce investment intensity coinciding with AWS's need for further CAPEX investment is remarkably fortuitous for Amazon. Amazon's e-commerce segment is arguably the most moated business in the world. |
Logistics Fulfillment Marketplaces | |
AlcoholCOVID was a bonanza for spirits companies, but the aftermath proved challenging with over-inventoried retail channels and tough comparables. Diageo serves as the bellwether for the spirits industry, facing narratives about GLP-1 drugs, Gen Z drinking less, and economic struggles in emerging markets. Tequila remains the one spirit category driving growth for the entire industry, with Diageo having the greatest exposure among large spirits companies. |
Beverages Tequila Spirits | |
Autonomous VehiclesHype surrounding fully autonomous vehicles became pervasive, with the narrative taking on a life of its own in markets. AVs are currently operational only in specific climates and geographies under certain conditions, making it nearly impossible to replace large-scale networks of human drivers. Uber's stock reflects draconian assumptions about AV disruption, despite the company being uniquely positioned to manage AV capacity alongside demand peaks and troughs. |
Electric Vehicles Technology Disruption | |
| 2024 Q2 |
EntertainmentThe fund initiated a position in Dave & Busters, viewing it as an affordable entertainment option for families despite near-term weakness from low-income consumer retrenchment. They also repurchased Vail Resorts, seeing value in irreplaceable ski mountain assets at decade-low valuations. |
Entertainment Consumer Leisure Family |
ConsumerConsumer-facing companies have been under pressure due to macro headwinds affecting low-income consumers, driven by high inflation and aggressive monetary tightening. The managers see relief coming from lower oil prices and forthcoming rate cuts that should benefit discretionary spending. |
Consumer Discretionary Inflation Rates Spending | |
BiotechnologyThe fund continues to hold Sartorius despite management communication issues and challenging guidance. They believe the bioprocessing industry has established a post-COVID bottom with an inflection point beginning, maintaining confidence in structural growth despite debate over recovery timing. |
Biotechnology Bioprocessing Recovery Growth | |
| 2024 Q1 |
BiotechnologyThe fund significantly increased positions in life sciences companies including Maravai LifeSciences and Sartorius AG. Maravai offers critical mRNA capabilities through TriLink and quality control through Cygnus, with exceptional margins and growth potential as mRNA therapies advance to clinical trials. The biotech sector represents a key focus area with multiple investments across the value chain. |
mRNA Bioprocessing Quality Control Clinical Trials Vaccines |
Small CapsThe managers emphasized their enthusiasm for small caps and made strategic moves to sell large cap positions like Meta to fund smaller-cap life science investments. They view the current environment as favorable for small cap opportunities despite recent underperformance relative to large caps. |
Small Cap Positioning Opportunity Valuation Allocation | |
| 2023 Q4 |
BiotechnologyThe fund significantly increased positions in life sciences companies including Maravai LifeSciences and initiated a position in Sartorius AG. Maravai offers critical mRNA manufacturing capabilities through TriLink and quality control testing through Cygnus, with exceptional margins and growth potential as mRNA therapies advance to clinical trials. The fund sees substantial opportunity in bioprocessing infrastructure as the industry scales. |
mRNA Bioprocessing Quality Control Clinical Trials Manufacturing |
Life Science ToolsThe fund emphasized investments in companies providing essential tools and services to the biotech industry. Sartorius dominates single-use bioreactors and offers comprehensive bioprocessing solutions with superior customer relationships. These companies benefit from the growing demand for biologics manufacturing and the shift from traditional steel bioreactors to single-use systems. |
Bioreactors Single-use Manufacturing Bioprocessing Equipment | |
| 2023 Q1 |
Small CapsSmall caps have dramatically underperformed large caps, with the Russell 2000 generating no return for five years while sitting at 2018 levels. The institutionalization of investment and indexation has led to fewer dollars in small cap space, creating opportunities for selective investors. |
Russell 2000 Underperformance Indexation Institutionalization |
BiotechnologyCytek Biosciences represents a leader in full spectrum flow cytometry, a transformative technology for cell analysis used across pharmaceutical, biotech, and research institutions. The company offers superior technology at lower costs than traditional competitors. |
Flow Cytometry Life Science Tools Research Instruments | |
Credit StressRegional bank failures including Silicon Valley Bank and First Republic highlighted fragility in the banking system, driven by concentrated deposit bases and interest rate risk from held-to-maturity portfolios. These failures demonstrated herding behaviors around emerging risks. |
Regional Banks Bank Failures Interest Rate Risk |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 18, 2026 | Fund Letters | RGA Investment Advisors | GTLB | GitLab | Other | Application Software | Bull | - | AI infrastructure, Application Software, Consumption-based Pricing, DevSecOps, Enterprise software, Free Cash Flow, High-teens Growth, SaaS, Value | Login |
| Aug 18, 2026 | Fund Letters | RGA Investment Advisors | ADBE | Adobe | Other | Application Software | Bull | - | AI Workflows, Application Software, creative software, deep value, Free Cash Flow, SaaS, share repurchase, turnaround, Value | Login |
| Aug 18, 2026 | Fund Letters | RGA Investment Advisors | ADYEN.AS | Adyen | Other | Data Processing & Outsourced Services | Bull | - | Europe, Fintech, growth, infrastructure, Merchant Acquirer, net cash, payment processing, Payments, Value | Login |
| Aug 18, 2026 | Fund Letters | RGA Investment Advisors | MIPS.ST | Mips AB | Other | Leisure Products | Bull | - | Consumer Discretionary, E-bikes, growth, Ingredient Brand, IP Licensing, Oem Partnerships, Safety Technology, Sporting goods, Sweden | Login |
| Jun 10, 2026 | Fund Letters | RGA Investment Advisors | AMZN | Amazon.com, Inc. | Internet Retail | Internet & Direct Marketing Retail | Bull | NASDAQ | AI platform, Amazon Bedrock, AWS, cloud infrastructure, custom chips, Enterprise Migration, Equity, high-margin, hyperscaler, Model Orchestration, recurring revenue, Token Efficiency, Trainium | Login |
| Aug 7, 2025 | Fund Letters | Jason Gilbert | CRSP | CRISPR Therapeutics AG | Health Care | Biotechnology | Bull | NASDAQ | Asymmetric, Biotech, cash-rich, Gene Editing, pipeline | Login |
| Aug 7, 2025 | Fund Letters | Jason Gilbert | PTON | Peloton Interactive Inc. | Consumer Discretionary | Leisure Facilities | Bull | NASDAQ | Connected-Fitness, Margins, Pricing power, Subscription, turnaround | Login |
| Aug 7, 2025 | Fund Letters | Jason Gilbert | WDAY | Workday Inc. | Information Technology | Application Software | Bull | NASDAQ | Enterprise software, HCM, Margins, SaaS, valuation | Login |
| Aug 7, 2025 | Fund Letters | Jason Gilbert | ROKU | Roku Inc. | Communication Services | Advertising-Based Video on Demand | Bull | NASDAQ | advertising, ARPU, CTV, platform, Programmatic | Login |
| Aug 7, 2025 | Fund Letters | Jason Gilbert | FEVR | Fevertree Drinks Plc | Consumer Staples | Beverages | Bull | New York Stock Exchange | Beverages, Brand, consumer staples, margin expansion, Partnerships | Login |
| Aug 7, 2025 | Fund Letters | Jason Gilbert | PYPL | PayPal Holdings Inc. | Information Technology | Transaction & Payment Processing Services | Bear | NASDAQ | digital payments, Fintech, Moat-Erosion, Security | Login |
| Aug 7, 2025 | Fund Letters | Jason Gilbert | AWE | Alphawave Semi | Information Technology | Semiconductor Design | Bull | New York Stock Exchange | Governance, IP-Cores, M&A, semiconductors, Volatility | Login |
| Aug 7, 2025 | Fund Letters | Jason Gilbert | MTN | Vail Resorts Inc. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bear | New York Stock Exchange | Brand, Leisure, Pricing, Travel, turnaround | Login |
| May 27, 2025 | Fund Letters | RGA Investment Advisors | TSM | Taiwan Semiconductor Manufacturing Company Limited | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NYSE | advanced nodes, AI infrastructure, Cyclical Recovery, Foundry, geopolitical risk, hyperscalers, NVIDIA, Pricing power, semiconductors, Taiwan | Login |
| May 27, 2025 | Fund Letters | RGA Investment Advisors | BRKR | Bruker Corporation | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Academic Research, duopoly, insider buying, Life Sciences Tools, margin expansion, Mass Spectrometry, NMR Spectroscopy, Pan-Omics, recurring revenue, Spatial Biology | Login |
| May 27, 2025 | Fund Letters | RGA Investment Advisors | LULU | Lululemon Athletica Inc. | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bull | NASDAQ | athleisure, Brand, China, competitive moat, fashion, international expansion, Men's Growth, Performance Apparel, Proprietary Fabrics, share repurchases | Login |
| Sep 16, 2024 | Fund Letters | RGA Investment Advisors | PLAY | Dave & Buster's Entertainment Inc | Consumer Discretionary | Restaurants | Bull | NASDAQ | Consumer Discretionary, digital marketing, Eatertainment, EBITDA multiple, entertainment, Family Entertainment, food and beverage, Management Change, Pricing power, Restaurants, share repurchases, Special Events, turnaround, Value | Login |
| Sep 16, 2024 | Fund Letters | RGA Investment Advisors | MTN | Vail Resorts Inc | Consumer Discretionary | Hotels, Resorts & Cruise Lines | Bull | NYSE | defensive, dividend yield, Epic Pass, Geographic Diversification, Irreplaceable Assets, Pricing power, Recreational Activities, Scarcity Value, seasonal business, share repurchases, Ski Resorts, subscription model, Tourism, Value | Login |
| May 23, 2024 | Fund Letters | RGA Investment Advisors | META | Meta Platforms Inc | Communication Services | Interactive Media & Services | Bull | NASDAQ | digital advertising, growth, large-cap, Metaverse, social media, technology, virtual reality | Login |
| May 23, 2024 | Fund Letters | RGA Investment Advisors | MRVI | Maravai LifeSciences Holdings Inc | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Biotech, cancer treatment, CDMO, gene therapy, growth, high margins, Life Sciences Tools, mRNA Technology, small-cap | Login |
| May 23, 2024 | Fund Letters | RGA Investment Advisors | SRT3.DE | Sartorius AG | Health Care | Life Sciences Tools & Services | Bull | XETRA | Bioprocessing, cell therapy, European, gene therapy, Life Sciences Tools, market share gains, Pure-Play, Single-use Bioreactors | Login |
| May 23, 2024 | Fund Letters | RGA Investment Advisors | ADI|BDX|FI|FND|HAS|META|MSFT|MSI|ORCL|TMO | Meta Platforms Inc | Communication Services | Interactive Media & Services | Bull | NASDAQ | digital advertising, growth, large-cap, Metaverse, operating leverage, social media, technology, virtual reality | Login |
| May 23, 2024 | Fund Letters | RGA Investment Advisors | SRT3.DE | Sartorius AG | Health Care | Life Sciences Tools & Services | Bull | XETRA | Bioprocessing, Bioreactors, cell therapy, Europe, gene therapy, Life Sciences Tools, market share gains, Pure-Play, Single-Use, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| GTLB | We bought shares in GitLab. GitLab is a software company offering DevSecOps and git management for enterprises, serving as an essential orchestrating layer for companies to securely manage their codebase and IP. AI is unquestionably driving demand for GitLab's offerings, but there is concern around its traditional per-seat pricing model versus a consumption-based model. If AI reduces the number of employees in technical roles at large enterprises, this presents a headwind to growth. This headwind has slowed top-line growth faster than GitLab's budding consumption-based models for AI agents have been able to replace the lost revenue. As it stands today, AI-based revenues are a small piece of the pie, but we expect substantial growth over time. At sub-4x EV/sales, around 20x EV/EBITDA and a free cash flow yield over 5%, we think the valuation is compelling for a business still growing its top line in the high teens and playing an increasingly important role in enterprise AI workflows. |
| ADBE | We had watched and studied Adobe with admiration for many years following their evolution from selling licensed software to subscription software. Adobe became the template by which numerous other software companies pivoted to SaaS and the rest, as they say, is history. Or so we all thought. Over the past several years, Adobe's shares have dropped dramatically. At first, the concern was competition from Figma and Canva. Then Adobe became Exhibit 1 in the AI losers basket. We think Adobe is far more resilient than fears suggest. Similar to GitLab, there is seat-based pricing risk; however, in many industries, Adobe's offerings are irreplaceable, even with AI. Moreover, Adobe is in a great position to become the layer on top of which key AI workflows are built. Data and context are critical to these workflows, and Adobe has considerable advantages in both. We acknowledge some of the risks Adobe faces, but at a P/E of sub-10x and a FCF yield north of 10%, the market is pricing the stock as a melting ice cube while growth is still right around 10%. The company is using its healthy balance sheet and robust free cash flow to repurchase shares at a healthy clip. We think this is a potent setup as the company proves its resilience for the AI era. |
| ADYEY | Adyen is a company we admired from afar for years, thinking its gaudy valuation would forever preclude us from owning shares. In 2022, we came close to buying shares after intense competition led to a slowdown in growth. Today, the shares trade at a similar price, while the company has more than doubled both its top and bottom lines. Stated another way, you get twice as much value for each share today versus 2022. Meanwhile, the competitive intensity in the space has been waning following the consequences of uneconomic behavior at some competitors as well as further industry consolidation. Earlier this year, shares declined precipitously when growth was guided to 20–22% instead of 21–23%. No, this is not a typo. Investors abandoned ship over a 1% delta in the growth outlook. We think this was exacerbated by Adyen's prowess as a unified software stack, leading to the perception that Adyen is software. We do think the software is part of Adyen's differentiation, but beyond software, we think Adyen's role as a merchant acquirer and bank in many of its key geographies allows swifter payout to customers, better auth rates than most, and one unified global analytics platform for customers. We have spoken to numerous payments customers through the years and the glowing remarks about Adyen stand out over time. We bought Adyen at a mid-teens EV/EBITDA and a P/E just north of 20x, while growing upwards of 20%. The company holds a considerable net cash position, equating to a high-teens percent of market cap. |
| MIPS-B.ST | You might recognize Mips as the little yellow dot on your ski/snowboard or bike helmet. The company has risen to prominence for their ubiquitous rotational impact protection insert across all key helmet manufacturers. Mips is an ingredient company that sells some know-how (IP) and a small insert that the manufacturer buys and integrates for a small piece of their overall cost of goods sold. The company has been growing by signing new helmet OEMs, expanding its share with existing OEMs and innovating, all of which opens doors to more performant helmets and new verticals like safety and moto. Shares had suffered as the company disclosed a considerable portion of their net income would be spent in order to defend one of their OEMs from a patent troll lawsuit. At the time of our purchase, Mips was trading at a high-teens P/E when adjusted for these legal expenses, while growing upwards of 30% FX-adjusted. We had identified the case, followed it closely and felt good about Mips' range of possible outcomes. Since purchasing shares, the litigation settled for a nominal sum, which we think is a strong deterrent for other potential IP trolls. We like the outlook for Mips over the coming years and think the rise of e-bikes creates an incredible opportunity to take the fairly mature cycling vertical into a whole new growth wave. |
| ROKU | On June 15th, Roku announced that it would be acquired by Fox Corp (FOXA). We first bought shares in Roku in late 2018 and what a wild ride it has been. We sold shares several times along the way and bought meaningfully more when the remaining position almost fully round-tripped to our basis. Had you told us the outcome ex ante in 2018, we would have been excited. Yet it all feels bittersweet, with solid overall returns accompanied by a half-dozen impactful lessons that continue to shape how we approach underwriting stocks, portfolio management and the tax consequences of selling. As with many companies and investors, COVID led to some behavioral changes that were costly. Roku was distinctly on the right track toward correcting those errors by right-sizing the cost structure, building a robust strategy to drive ARPU and commencing a share repurchase program to capitalize on a cheap stock and healthy balance sheet. We applaud Roku's execution following their course correction. In the end, each share of Roku will receive $96 of cash and 0.9693 shares of FOXA. We are likely to hold the FOXA shares upon closing of this transaction, given our enthusiasm around the acceleration in growth at Roku itself and the revenue synergies between the two assets. |
| FOXA | On June 15th, Roku announced that it would be acquired by Fox Corp (FOXA). In the end, each share of Roku will receive $96 of cash and 0.9693 shares of FOXA. We are likely to hold the FOXA shares upon closing of this transaction, given our enthusiasm around the acceleration in growth at Roku itself and the revenue synergies between the two assets. |
| LSCC | In aggregate, we funded these acquisitions with the sale of Lattice Semiconductor, Disney and Workday, as well as a modest trim from our Alphabet position. |
| DIS | In aggregate, we funded these acquisitions with the sale of Lattice Semiconductor, Disney and Workday, as well as a modest trim from our Alphabet position. |
| WDAY | In aggregate, we funded these acquisitions with the sale of Lattice Semiconductor, Disney and Workday, as well as a modest trim from our Alphabet position. |
| GOOGL | In aggregate, we funded these acquisitions with the sale of Lattice Semiconductor, Disney and Workday, as well as a modest trim from our Alphabet position. |
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