Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.2% | 1.6% | 11.8% |
| 2025 | 2024 |
|---|---|
| 11.8% | 16.1% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.2% | 1.6% | 11.8% |
| 2025 | 2024 |
|---|---|
| 11.8% | 16.1% |
The Artisan Global Discovery Fund delivered strong absolute returns in Q4 2025 and for the full year, though trailing the MSCI All Country World Small Mid Index. The portfolio benefited from strong stock selection in healthcare, where several biotech franchises delivered robust results as product launches gained momentum. AI-related investments including Coherent, JFrog and others contributed positively despite broader technology sector weakness late in the year. The team initiated new positions in Texas Roadhouse, TopBuild and SailPoint while exiting Nemetschek and Samsara. Healthcare's return as a source of market strength validated the team's maintained overweight position despite years of sector headwinds. Looking ahead, the managers remain focused on their disciplined investment process emphasizing franchise characteristics, profit cycles and valuation discipline. They believe the portfolio is well-positioned across diverse sectors including healthcare biotechnology, AI infrastructure, defense and industrials to navigate ongoing macro uncertainty while capitalizing on company-specific growth opportunities.
The fund seeks to invest in companies that possess franchise characteristics, are benefiting from an accelerating profit cycle and are trading at a discount to estimated private market value, with a focus on global small and mid-cap opportunities.
We remain focused on executing our investment process by emphasizing high-quality franchises, valuation discipline and identifiable profit cycles. We believe the portfolio is well positioned to navigate volatility as it has across past market cycles. We believe this bodes well for our process, which seeks to source growth opportunities across industries by leveraging our team of sector experts.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 27 2026 | 2025 Q4 | ARGX, ASND.CO, BAB.L, BKR, BLD, CCC, COH, DUOL, FROG, FWONA, INSM, IRTC, LABS, LYV, MOD, MPWR, MTSI, PEN, PSTG, RBC, SAIL, SE, SPOT, TTAN, TXRH, TYL, VRCY, WESCO, WST, WWD | AI, Biotechnology, defense, global, growth, healthcare, SMID Cap, technology |
COHR INSM FROG SE SPOT BAB LN TXRH BLD SAIL TTAN NEM GR IOT IRTC MTSI |
AI-related capital spending remains an area of active debate entering 2026, with investors weighing strong industry momentum against concerns about circular financing dynamics and datacenter… |
| Oct 24 2025 | 2025 Q3 | ASC SJ, BFAM, CWAN, LSEG LN, MOD, PSN, PSTG, TDY, TEAM, WAY, WING | AI, defense, growth, healthcare, semiconductors |
MOD PSTG ASND LSEG LN PRCT WING TDY WAY MOD PSTG ASND LSEG LN PRCT WING WAY |
Equities advanced globally on AI-driven investment, easing tariffs, and broad rate cuts. The fund focuses on innovative growth companies in health care, technology, and defense… |
| Jul 31 2025 | 2025 Q2 | ARIS, BAB LN, GDDY, GXI, III LN, IOT, IRTC, MIPS SS, RBC, SAIA, SPOT, SRT GR, TTD, WING | discovery, Global Growth, inflection points, underfollowed, valuation |
BAB LN IRTC SPOT ARIS SAIA GXI GR RBC WING III LN |
The letter emphasizes uncovering underfollowed global companies with emerging competitive advantages and accelerating fundamentals. Management focuses on identifying inflection points where earnings power is not… |
| Mar 31 2025 | 2025 Q1 | 0669 HK, ARGX, ARIS, ASND, BAB LN, CCCS, COHR, GWRE, ILMN, IRTC, MTSI, PRCT, PSTG, SAIA, SE, SPOT, TWST, TYL, USFD, VEEV, WAB, WST | - | - | - |
| Dec 31 2024 | 2024 Q4 | ANET, GALD SW, GXI GR, MNDY, MPWR, MTSI, NZM GR, ON, PSTG, SGE LN | - | - | - |
| Sep 30 2024 | 2024 Q3 | 0SAN LN, 669 HK, ARGX, CWAN, ESTC, GALD SW, HUBB, NU, NZM GR, RYTM, TCOM, TREX, TTEK, WING | - | - | - |
| Jul 20 2024 | 2024 Q2 | 4684 JP, BSY, ESTC, LM0F GR, LSCC, MRO LN, MTSI, NTBL, ONTO, SAIA, TWST, TYL | - | - | - |
| Apr 15 2024 | 2024 Q1 | 6415 TT, BAB LN, BJ, BSX, CELH, MIPS SS, MKTX, MONC IM, RDC GR, SAIA, SPGI, SPOT, SWAV, TEAM, TYL, VEEV, VRT | - | - | - |
| Dec 31 2023 | 2023 Q4 | 58H GR, AMD, ARGX, BC IM, CNHI, EFX, MELR, MRO LN, ON, TREX, VEEV | - | - | - |
| Apr 10 2023 | 2023 Q3 | ADYE AV, ARGX, SWAV, TEAM | - | - | - |
| Jun 30 2023 | 2023 Q2 | 0ABI LN, 0NIQ LN, 603605 CH, 6415 TT, ASND, BJ, BSY, CTLT, LYV, NOVT, NU, POOL, SWAY | - | - | - |
| Mar 31 2023 | 2023 Q1 | BSY, CNHI, CPR IM, CWAN, GXI GR, HAPVY, HUBS, LSCC, NDAQ, NEF GR, SIVBQ, SMIN LN, WST | - | - | - |
| Jan 20 2023 | 2022 Q4 | 0ABI LN, 0I4Q LN, CNHI, CTLT, GMAB, GXI GR, IR, LSCC, MPWR, PUMA, RYTM, SAIA, SIVB, TEAM, ZS | - | - | - |
| Sep 11 2022 | 2022 Q3 | AZTA, BBVA, BURL, CAE, CTLT, GNRC, ON, SMGKF, TEAM, VEEV, VMI | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
Data CentersComfort Systems USA benefited from robust demand for data centers and AI-related infrastructure, with the company reporting stronger-than-expected revenue driven by this demand. |
Infrastructure Technology Construction AI Revenue | |
DefenseDefense positioning includes exposure to missiles, air defense and space through companies like Lockheed Martin, supported by large order backlogs providing strong long-term visibility amid heightened geopolitical tensions. |
Military Aerospace Geopolitical Security Infrastructure | |
TechnologyThe fund added three technology companies that have each halved over 2025 and hopes to add more. Many tech stocks had become expensive but recent falls present opportunities, though most still aren't cheap enough including Xero. |
Software Valuation Opportunity Selloff | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
| 2025 Q2 |
Discovery |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 24, 2025 | Fund Letters | Jason L. White | WING | Wingstop Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | advertising, Franchising, Loyalty, operational efficiency, ROIC, Unit growth | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | BAB LN | Babcock International Group plc | Industrials | Aerospace & Defense Services | Bull | New York Stock Exchange | Defense, Government, infrastructure, Margins, turnaround | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | WAY | Waystar Holding Corp. | Health Care | Health Care Technology | Bull | NASDAQ | AI, Automation, Healthcare IT, Revenue cycle, Roi, Switching, Workflow | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | TXRH | Texas Roadhouse, Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | Branding, consumer, Margins, Restaurants, Unit growth | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | BAB LN | Babcock International Group PLC | Other | Aerospace & Defense | Bull | NYSE | backlog, Contracts, Defense, Government, Margins, Nuclear, Procurement, services, turnaround | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | BLD | TopBuild Corp. | Industrials | Building Products | Bull | New York Stock Exchange | Acquisitions, Building materials, construction, Cyclicality, data centers | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | MOD | Modine Manufacturing Co. | Consumer Discretionary | Electrical Components & Equipment | Bull | NYSE | AI infrastructure, Capacity growth, hyperscale, margin expansion, secular tailwinds, thermal management | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | IRTC | iRhythm Technologies, Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Cardiology, diagnostics, Digitalhealth, growth, Margins, Medtech, Reimbursement, Wearables | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | SAIL | SailPoint Technologies Holdings, Inc. | Information Technology | Application Software | Bull | NASDAQ | AI, cloud, cybersecurity, Identity, Software | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | PSTG | Pure Storage Inc. | Information Technology | Computer Hardware | Bull | NYSE | All-flash storage, ARR, Cost efficiency, hyperscalers, market share, Subscriptions | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | SPOT | Spotify Technology S.A. | Communication Services | Interactive Media & Services | Bull | NYSE | advertising, antitrust, Audio, Margins, monetization, Regulation, Streaming, Subscriptions | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | TTAN | ServiceTitan, Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | Payments, SaaS, Trades, vertical software, Workflow | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | ASND | Ascendis Pharma A/S | Health Care | Biotechnology | Bull | NASDAQ | Biotech, innovation, Launch uptake, pipeline, platform, Revenue visibility | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | ARIS | Aris Water Solutions, Inc. | Utilities | Oil & Gas Equipment & Services | Bull | NYSE | Basin, Cyclicality, infrastructure, midstream, oil, Pipelines, Recycling, Water | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | NEM GR | Nemetschek SE | Information Technology | Application Software | Bear | Xetra | Aec Software, execution risk, exit, Macro, Subscriptions | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | LSEG LN | London Stock Exchange Group plc | Financials | Financial Exchanges & Data | Bull | NYSE | Ai partnership, financial data, Moat, monetization, Pricing pressure, risk management | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | SAIA | Saia, Inc. | Industrials | Road & Rail | Bear | NASDAQ | Capacity, Cycle, Freight, Margins, Pricing, tariffs, Transportation, Volumes | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | IOT | Samsara Inc. | Information Technology | Application Software | Bear | New York Stock Exchange | exit, growth, IoT, Telematics, valuation | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | PRCT | PROCEPT BioRobotics Corp. | Health Care | Medical Devices | Bull | NASDAQ | BPH, Clinical evidence, growth, leadership, Margins, Medical robotics | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | GXI GR | Gerresheimer AG | Health Care | Life Sciences Tools & Services | Bear | - | biologics, Costs, Cyclicality, Destocking, Margins, Packaging, pharma | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | IRTC | iRhythm Technologies, Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Cardiac, cashflow, FDA, healthcare, Wearables | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | WING | Wingstop Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | advertising, Franchising, Loyalty, operational efficiency, ROIC, Unit growth | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | RBC | RBC Bearings Incorporated | Consumer Discretionary | Industrial Machinery & Supplies & Components | Bull | NASDAQ | Aerospace, Bearings, Industrials, Moats, Pricing, recovery, Supplychain | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | MTSI | MACOM Technology Solutions Holdings, Inc. | Information Technology | Semiconductors | Bull | NASDAQ | Bookings, data infrastructure, Margins, semiconductors, valuation | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | TDY | Teledyne Technologies Inc. | Information Technology | Aerospace & Defense / Electronic Instruments | Bull | NYSE | Automation, Defense, EPS growth, Free Cash Flow, Imaging, M&A, Sensors | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | WING | Wingstop Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | Branding, Digital, expansion, Franchising, growth, Margins, Restaurants, Uniteconomics | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | WAY | Waystar Holding Corp. | Health Care | Health Care Technology | Bull | NASDAQ | AI, Automation, Healthcare IT, Revenue cycle, Roi, Switching, Workflow | Login |
| Jul 31, 2025 | Fund Letters | Jason L. White | III LN | 3i Group plc | Information Technology | Asset Management & Custody Banks | Bull | NYSE | Discounting, growth, NAV, Privateequity, retail, valuation | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | MOD | Modine Manufacturing Co. | Consumer Discretionary | Electrical Components & Equipment | Bull | NYSE | AI infrastructure, Capacity growth, hyperscale, margin expansion, secular tailwinds, thermal management | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | COHR | Coherent Corp. | Information Technology | Optoelectronic Equipment | Bull | New York Stock Exchange | AI, data centers, Margins, Photonics, semiconductors | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | PSTG | Pure Storage Inc. | Information Technology | Computer Hardware | Bull | NYSE | All-flash storage, ARR, Cost efficiency, hyperscalers, market share, Subscriptions | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | INSM | Insmed Incorporated | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, Drug launch, growth, healthcare, Pulmonology | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | ASND | Ascendis Pharma A/S | Health Care | Biotechnology | Bull | NASDAQ | Biotech, innovation, Launch uptake, pipeline, platform, Revenue visibility | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | FROG | JFrog Ltd. | Information Technology | Application Software | Bull | NASDAQ | AI, cloud, Devops, Security, Software | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | LSEG LN | London Stock Exchange Group plc | Financials | Financial Exchanges & Data | Bull | NYSE | Ai partnership, financial data, Moat, monetization, Pricing pressure, risk management | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | SE | Sea Limited | Communication Services | Internet Services & Infrastructure | Bull | New York Stock Exchange | ecommerce, Internet, Margins, Platforms, Southeast Asia | Login |
| Oct 24, 2025 | Fund Letters | Jason L. White | PRCT | PROCEPT BioRobotics Corp. | Health Care | Medical Devices | Bull | NASDAQ | BPH, Clinical evidence, growth, leadership, Margins, Medical robotics | Login |
| Jan 27, 2026 | Fund Letters | Jason L. White | SPOT | Spotify Technology S.A. | Communication Services | Interactive Media & Services | Bull | New York Stock Exchange | Audio, media, monetization, Streaming, Subscriptions | Login |
| TICKER | COMMENTARY |
|---|---|
| ARGX | argenx SE is a global immunology company focused on improving the lives of patients suffering from severe autoimmune diseases. Their stock jumped 14% due to strong progress in its Vyvgart franchise, driven by higher pre-filled syringe sales volumes for both the myasthenia gravis and chronic inflammatory demyelinating polyneuropathy indications. There are multiple catalysts over the next 12 months that could drive additional growth. |
| BAB.L | Babcock is the UK's second-largest defense supplier. The company has been capitalizing on its control of both critical infrastructure and the largest nuclear-capable workforce by expanding internationally and seeking growth opportunities amid rising global defense spending. New leadership has stabilized operations, strengthened the balance sheet and addressed legacy contract issues—setting the stage for potential margin improvement. |
| BKR | Within the commodity sector - where we are positioning for sustained tensions around currency debasement, energy consumption and strategic asset security - we initiated Baker Hughes. Baker Hughes gives us exposure to energy services, a sub-sector of the oil and gas industry that supplies equipment and expertise to upstream, midstream, and LNG operators across the project lifecycle. It is particularly well positioned within LNG infrastructure – an area where the long-term dynamics look very positive. |
| BLD | TopBuild is a leading installer and distributor of insulation and building materials across residential and commercial markets. We believe the company is entering a strong profit cycle, driven by acquisitions that expand its exposure to higher growth, higher margin segments such as commercial roofing, datacenters and large industrial projects. Its duopoly position in residential insulation, enterprise technology platform and proven integration capabilities provide meaningful competitive advantages and support margin expansion. |
| CCC | CCC operates a vertically integrated, mission-critical software platform for the automotive insurance ecosystem. CCC commands a monopoly like position, handling over 80% of U.S. auto claims, and leverages scale, network effects, and high customer retention to maintain its competitive edge. This enables durable high-single-digit organic growth driven by product upsells and new customer wins in a fragmented repair market. The company is also benefiting from the digitalization of more complex auto claims. We own CCC in our SMID portfolio, and we believe the market is discounting a high-quality company amid short term concerns of slower growth from new product rollouts and AI risks. In reality, CCC's AI-powered offerings have helped its core business by enhancing claims automation, accuracy, and speed. CCC implemented an accelerated share repurchase program and insiders have been buying shares in the open market to show conviction in the business. We believe the margin of safety is supported by the business's stability and a management team with a strong track record of innovation. |
| COH | Coherent is a leading supplier of lasers and photonics solutions used across datacenter, industrial and communications applications. Recent earnings were solid, with results exceeding expectations and management highlighting strong demand for high-speed optical components supporting AI-driven datacenter growth, alongside improving margins. Management also expressed increased confidence in Coherent's vertically integrated indium phosphide platform, which provides supply chain flexibility and a competitive advantage amid constrained industry capacity. |
| DUOL | I have followed the company closely since the IPO since my wife was an avid user, not wanting to break her streak in learning Italian. I thought growth would drop off a cliff after COVID as happened with many other companies, and yet, quarter after quarter the company continued to execute. In fact, there are only four companies I can find that have grown revenues greater than 30% for at least the last 20 quarters in a row – MercadoLibre, Axon, Hims, and Duolingo. To have that growth endurance, you've got to be doing something right! Well, the stock was down almost 70% after the valuation got far too rich and management made it very clear they were prioritizing learning over monetization for 2026. That is the right call in my opinion, considering what the core competency of the company is. Duolingo shouldn't be thought of as a language learning app, it's an engagement machine that happens to educate. In service of its mission to make education widely available, it built the data-driven muscle of engaging users. To learn anything, the most difficult part is motivation and that is what Duolingo is good at. In fact, almost 40% of monthly users log into the app every day. For context, Snapchat is at 50%! You're telling me that an app that teaches you Spanish almost has the same level of engagement as the app where teens do all of their communication? As the company broadens its education subjects like math, music, chess, and other areas, retention should increase even more. If you get bored of learning a language, you can hop over to play some chess. And AI will allow the company to create better content for their current subjects and accelerate the broadening of the platform. Paired with the engagement muscle, Duolingo very well could become a must-have app for learning all sorts of things. This vision will take time but it's actually the exact vision of the CEO/founder. The main bear cases are AI translation and that no one actually learns anything. On the latter, it's up to the user. Duolingo can't force you to learn anything. But yes, education apps typically have very high churn. The fact that Duolingo is able to increase paid subs at a rapid rate despite the leaky bucket is incredibly impressive. On the former, language learning isn't all about practicality. For a large portion of users, they're trying to learn English and they actually really want to understand the language rather than use AI translating glasses. And secondly, Duolingo includes a structure for habit formation. The company is already embedding AI into its content program with its Max Tier so as the models improve, so should Duolingo's product. It's easy to say that high engagement, alone, isn't a moat and I'd agree but the company's core competency is A/B testing and therefore, the product improves at a much higher rate than competitors as it scales. We paid ~18x FCF, inclusive of stock-based comp. That's not super cheap but for a company with an exceptional founder and growth endurance rivaling our long-time holdings, MercadoLibre and Axon, we decided to finally start a position. |
| FROG | Lastly was JFrog Ltd., the portfolio's strongest performer this quarter. JFrog manages the software supply chain and enables organizations to securely deliver software updates across their enterprises. Demand for security increased following the recent NPM supply chain attack. JFrog's security add-on—which secures open-source packages before organizations onboard them—has seen significant pipeline growth, driving a 32% rally in its shares. |
| INSM | Insmed Inc., a biopharmaceutical company focused on developing and commercializing therapies for patients with rare diseases, advanced 21% over the quarter. We have been pleased with the launch of Brensocatib, a first-in-class oral medication that treats non-cystic fibrosis bronchiectasis. The reception has been positive from physicians, patients, and payers. |
| IRTC | iRhythm provides the Zio wearable cardiac monitoring devices to assist physicians in diagnosing cardiac arrhythmias that signal elevated stroke risk. The company delivered a strong quarter that included solid growth in its core services and improved cash flow trends. After a strong 2025 driven by company-specific profit-cycle tailwinds and market share gains, we trimmed the position to take profits and right-size the investment. Growth may moderate in 2026, ahead of what we expect to be another compelling product cycle beginning in 2027. |
| LYV | The ticketing operator delivered a mixed but broadly encouraging update, although some divisions saw a slowdown in profit growth. |
| MPWR | During the quarter, we also initiated a position in Monolithic Power Systems, Inc. (MPS), which designs semiconductor chips that control and deliver power inside electronic systems. Its products ensure that processors, memory, and sensors receive the precise power they need, safely and efficiently. MPS has built a leadership position in power management through deep system-level design expertise and highly integrated solutions that combine multiple functions into compact, high-performance devices. MPS is positioned to benefit from two major long-term shifts: the redesign of data centers for AI and the transformation of vehicle electrical architectures. |
| MTSI | At the beginning of the quarter, we added to our position in MACOM Technology, an analog semiconductor solutions provider. Later, the company bested expectations for revenues and earnings, with management increasing its guidance for the next quarter. That lifted its shares by 38%, and we trimmed our position at later peaks. |
| PEN | Penumbra reported strong quarterly financial results in which the company reported 16.9% constant currency revenue growth driven in part by 18.5% U.S. Thrombectomy revenue growth. In early January, the company announced it entered into an agreement to be acquired by Boston Scientific Corporation for approximately $14.5 billion at a 19% premium to the closing price the day prior. |
| PSTG | During the fourth quarter, we found several opportunities to lean back into holdings that we trimmed or sold earlier in the year due to valuation, including Pure Storage (PSTG). In fact, the large swings in PSTG's share price illustrate why dollar-based turnover has been elevated. The all-flash storage array maker enjoyed accelerating sales growth the last few quarters as more enterprises and hyperscalers adopted its superior storage solutions. Fundamentals have been in-line or better than our expectations. Nonetheless, despite consistently solid results, PSTG's share price, as shown below, has taken a wild ride. |
| RBC | RBC designs and manufactures precision bearings and engineered components for aerospace, defense, and industrial markets. The stock outperformed in 4Q25 as aerospace demand remained resilient, defense orders accelerated, and operating leverage drove margin expansion. |
| SAIL | SailPoint provides technology solutions that help organizations manage and protect access to systems and data. Adoption of cloud-based infrastructure and the integration of AI technologies are supporting steady demand for subscription-based offerings. We believe the company's strong governance capabilities and early investments in AI position the company to capitalize on emerging agentic security trends over time. |
| SE | We also exited Sea Limited due to significant adverse investor sentiment following a worse-than-expected earnings report where a capex announcements on logistic networks and fulfilment led to margin compression. Experience suggests that when companies go through capex cycles, sentiment can remain volatile until investors are satisfied that the expenditure will lead to a bigger and better business. |
| SPOT | Spotify is the world's leading audio streaming platform. Third-quarter results showed continued operating progress, with users increasing 11% to 713 million and subscribers growing 12% to 281 million. Meanwhile, operating income expanded to a mid-teens margin, alongside a record quarterly free cash flow. Despite the momentum, the shares weakened as investors reset near-term margin expectations. Spotify has been a top contributor to long-term Fund performance, and we remain confident that pricing, product innovation, advertising efficiency, and an expanding ecosystem can continue to widen margins over time, as reinforced this quarter by the launch of Spotify recommendations within ChatGPT. |
| TTAN | ServiceTitan is a leading provider of vertical software solutions for the trades, including plumbing, HVAC and electrical. Its platform supports the entire workflow from lead generation to payment, generating revenue through subscriptions and usage-based processing. We see meaningful growth opportunities through new customer acquisition, upselling and expansion into additional trades. During the quarter, we increased our position following a pullback amid broader software industry weakness, reflecting our conviction in the durability of its profit cycle. |
| TXRH | Texas Roadhouse is a casual dining company that operates a core steakhouse brand along with two smaller concepts, Bubba's 33 and Jaggers, all focused on high-quality food, strong value and an owner-operator model. We believe the company is very well run with a defensible brand, a growing value advantage versus peers and a long runway for growth driven by new restaurant openings, higher throughput and a return to historical margin levels. |
| TYL | TYL lagged in the quarter as investor preference shifted away from software names. While the company's long-term fundamentals and recurring revenue model remain intact, near-term growth visibility and valuation considerations weighed on relative performance. |
| WWD | Woodward develops and produces control systems and energy conversion solutions and components for the aerospace and industrial end markets. The stock was a steady and strong performer throughout 2025, and once again delivered an impressive quarterly report that was highlighted by particularly strong performance in its aerospace aftermarket vertical. The potential for the long-awaited increased rate of production from the large airframe original equipment manufacturers (OEMs) in 2026 could provide an additional tailwind to growth. Investors also remain optimistic about the company's increasing exposure to newer-generation aircraft that could result in a further step-change in aftermarket growth in the latter half of the decade. |
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