| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 14.9% | - | 4.0% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 4.0% | 22.9% | 30.8% | -12.2% | 41.3% | 0.4% |
Aoris International Fund returned 4.0% in 2025, underperforming its 13.7% benchmark amid unusual market conditions favoring AI and large technology companies while neglecting other quality businesses. The manager describes 2025 as characterized by market enthusiasm for AI paired with disdain for much else, creating a stretched elastic band effect where intrinsic values grew around 13% while many share prices stagnated or declined. Top contributors included Amphenol and Halma, both benefiting from AI-driven data center growth, and L'Oréal, which recovered from prior underperformance. Major detractors included Atlas Copco and Copart, which were sold due to fundamental concerns, and Accenture and RELX, which were misperceived as AI losers despite strong fundamentals. The portfolio now trades at an average 25% discount to fair value, creating unusually attractive prospective returns. The manager maintains conviction in the disciplined investment process, expecting patience with quality businesses to be rewarded as valuations normalize over time.
Own durable, resilient, market-leading businesses at attractive prices and focus on long-term rather than short-term results to deliver 8-12% annual returns over market cycles.
The manager feels very positive about prospective returns, believing the portfolio begins 2026 with unusually attractive valuations. With intrinsic value growing at around 10% annually and an average 25% valuation gap, the stretched elastic band effect should contribute meaningfully to returns as share prices converge with fair value over the coming years.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 23 2026 | 2025 Q4 | ACN, AMZN, APH, ATCO-A.ST, CPRT, FAST, GWW, HLMA.L, IHG.L, JKHY, MSCI, OR.PA, RELX.L, SAP.DE | AI, international, long-term, Quality, technology, value | - | AI drove exceptional growth for data center-focused holdings like Amphenol and Halma, while creating market perception challenges for service companies like Accenture and RELX. The manager believes AI will ultimately benefit rather than harm these service businesses, as enterprise AI adoption requires complex change management and enhances rather than replaces proprietary data solutions. The manager emphasizes owning durable, resilient, market-leading businesses with competitive advantages and capable management. The portfolio focuses on companies with consistent earnings growth records, strong market positions, and the ability to gain market share over time through superior execution. The manager describes an unusually wide valuation gap between intrinsic value and share prices, with portfolio holdings trading at an average 25% discount to fair value. This stretched elastic band effect creates attractive prospective returns as valuations normalize over time. |
| Nov 3 2025 | 2025 Q3 | ACN, APH, CPRT, IHG LN, JKNY, REL LN, SAP GR | Accenture, AI, Quality, SAP, valuation |
ACN REL SAP IHG ACN REL SAP |
Aoris International Fund reiterates its disciplined quality focus, favoring durable, high-return companies like RELX, Accenture, and Amphenol amid market concentration in mega-cap tech and speculative bubbles. Management views AI as a long-term productivity enabler, not a threat, highlighting beneficiaries such as Accenture and SAP. The fund emphasizes valuation discipline and rapid exits when confidence erodes to preserve capital and sustain long-term compounding. |
| Aug 11 2025 | 2025 Q2 | ACN, ACO GR, APH, CPRT, DPLM LN, HLMA LN, JKHY, MSFT, OR FP | cash flows, global, moats, Quality, valuation | - | The commentary emphasizes global high-quality companies with strong competitive positions, predictable cash flows, and conservative balance sheets. Management remains cautious on valuations while favoring businesses capable of sustaining returns through economic uncertainty. Long-term quality compounding remains the core investment thesis. |
| Apr 27 2025 | 2025 Q1 | CAN, CPRT, EXPN LN, GWW, MSCI, MSFT, OR FP, REL LN, V | - | - | |
| Jan 28 2025 | 2024 Q4 | APH, CDW, CPG LN, DPLM LN, HLMA LN, MC FP, MSCI, OR FP, RELX, SHW, TSCO, V | - | - | |
| Oct 23 2024 | 2024 Q3 | ACN, APH, CPG LN, CPRT, CTAS, DPLM, ENEL IM, EOAN GR, FAST, MSCI, MSFT | - | - | |
| Jul 20 2024 | 2024 Q2 | CDW, MC FP, MSCI, NVDA | - | - | |
| May 8 2024 | 2024 Q1 | ACO GR, COST, CPG LN, NVDA, TSCO, V | - | - | |
| Jan 26 2024 | 2023 Q4 | ATCOB SW, COST, CPRT, FAST, GGG, MSFT, OR FP | - | - | |
| Nov 10 2023 | 2023 Q3 | - | - | - | |
| Jun 30 2023 | 2023 Q2 | - | - | - | |
| Mar 31 2023 | 2023 Q1 | ACN, CTAS, FAST, GGG, LOR GR, LVMH SW, NKE | - | - | |
| Feb 24 2023 | 2022 Q4 | ACN, CTAS, HLMA LN, NKE | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
| 2025 Q2 |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Nov 3, 2025 | Fund Letters | Stephen Arnold | ACN | Accenture plc | Information Technology | IT Consulting & Outsourcing | Bull | NYSE | AI, buybacks, Consulting, Digital transformation, EPS growth, Outsourcing, productivity, recurring revenue | Login |
| Nov 3, 2025 | Fund Letters | Stephen Arnold | REL | RELX plc | Industrials | Information & Analytics Services | Bull | NYSE | AI, Data Analytics, Europe, Fraud prevention, Legal Tech, Pricing power, recurring revenue, Scalability, Workflow | Login |
| Nov 3, 2025 | Fund Letters | Stephen Arnold | SAP | SAP SE | Information Technology | Enterprise Software | Bull | - | AI, Automation, cloud, Enterprise software, ERP, Free Cash Flow, Margins, Predictive analytics, recurring revenue | Login |
| Nov 3, 2025 | Fund Letters | Stephen Arnold | IHG | InterContinental Hotels Group plc | Consumer Discretionary | Hotels, Resorts & Leisure | Bull | NYSE | asset-light, Brand, cash flow, dividends, franchise, growth, hospitality, Loyalty, pipeline | Login |
| Nov 3, 2025 | Fund Letters | Stephen Arnold | ACN | Accenture plc | Information Technology | IT Consulting & Outsourcing | Bull | NYSE | AI, buybacks, Consulting, Digital transformation, EPS growth, Outsourcing, productivity, recurring revenue | Login |
| Nov 3, 2025 | Fund Letters | Stephen Arnold | REL | RELX plc | Industrials | Information & Analytics Services | Bull | NYSE | AI, Data Analytics, Europe, Fraud prevention, Legal Tech, Pricing power, recurring revenue, Scalability, Workflow | Login |
| Nov 3, 2025 | Fund Letters | Stephen Arnold | SAP | SAP SE | Information Technology | Enterprise Software | Bull | - | AI, Automation, cloud, Enterprise software, ERP, Free Cash Flow, Margins, Predictive analytics, recurring revenue | Login |
| TICKER | COMMENTARY |
|---|---|
| ACN | Accenture is the world's leading IT consultant, with advantages stemming from their depth and breadth across products, geographies, and industries. Over the last four years, Accenture's valuation has roughly halved. They've faced headwinds in IT spending and suffered from the perception that they are an AI loser. We believe that AI will cause deflationary pressure in parts of their business, but that it will be more than offset by the work required for enterprises to adopt AI. This is recently evidenced by partnerships with OpenAI and Anthropic. |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| APH | We trimmed Amphenol Corp. |
| ATCO-A.ST | Atlas Copco supplies industrial products and components, such as vacuum valves, air compressors, filters and pumps, into a wide variety of end markets. We expect the businesses we own to be commercially ambitious and look to grow their revenue faster than the markets they serve – even more so when those markets are challenged. We sold Atlas Copco in May, having become disappointed with its lack of observable self-help initiatives. |
| CPRT | we recently trimmed some of our mega-cap tech holdings and other outperformers and used the proceeds to buy more of our underperforming holdings such as Copart, Inc. |
| FAST | FAST underperformed during the quarter as elevated expectations reset and industrial demand recovered more slowly than expected. Sales growth from new customer sites remained. Strong cash generation, a healthy balance sheet, and disciplined capital allocation continue to provide downside support. |
| GWW | One of the new entrants into the portfolio was W.W. Grainger, a North American distributor of industrial consumables, tools and supplies. We have previously owned this name in the portfolio and followed closely for many years. The driver to re-introduce to the portfolio now is an attractive valuation and view that an up-cycle seems imminent. Our modelling calls for double digit revenue growth and mid-teens EPS CAGR over the next few years, together with good potential for multiple expansion as earnings accelerate. W.W. Grainger has a solid moat allowing for pricing and market share gains on top of the industrial production growth. Its profitability (GPM, OPM, RoCE and cash conversion) is in the top-quintile relative to peers and financial leverage is low, which allows for generous shareholder returns. |
| HLMA.L | Halma consists of over 50 manufacturers operating in global niches within the safety, environmental and healthcare sectors. Halma's diversification, focus on differentiated products and exposure to structurally growing markets have allowed yearly profits to compound at a 15% rate for more than four decades, with low variability. We believe Halma is exceptionally well-managed and expect this growth to continue. Despite Halma's share price rising 32% in 2025, its valuation remains reasonable given the durability and quality of its growth. |
| IHG.L | IHG Group is a brand owner and franchisor of hotel chains globally. The largest hotel brands in the IHG system are Holiday Inn and Holiday Inn Express, followed by InterContinental and Crowne Plaza. IHG today accounts for 4% of global hotel rooms and 10% of the pipeline, which indicates it should increase its share of the hotel market and grow earnings at an attractive rate for many years to come. |
| JKHY | Jack Henry & Associates, Inc. is a leading provider of technology solutions for community banks and credit unions. Shares rose after the company reported better-than-expected quarterly results and raised financial guidance. Adjusted revenue grew 9% and earnings per share increased 21% in the quarter, reflecting a favorable demand environment, market share gains, and strong margin expansion. |
| MSCI | MSCI Inc. 4.3 1.40 (0.02) |
| OR.PA | In 2024, it seemed to us that other investors were unduly focused on a slowdown in consumer spending in China, an important market for L'Oréal yet contributing only 17% of its sales. L'Oréal is a broad, balanced business such that in any given year, faster-growing parts of the world will typically offset the weaker ones. We saw this in 2025, where strength in markets such as Europe, the Middle East and South America offset sluggish markets in China and the US, allowing L'Oréal to deliver a year of solid earnings growth. |
| RELX.L | RELX provides data and software tools to a variety of professional markets, including academic researchers, legal practitioners, risk and compliance teams inside corporates and financial institutions, auto insurers, and fraud mitigation teams within government agencies. RELX's share price declined 15% in 2025. The data at the core of RELX's solutions is proprietary and not available to AI models. Rather than undermining the value of its solutions, technology, including AI, enhances it. |
| SAP.DE | Germany-based global software developer for business applications |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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