Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 0% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 0% |
Global equity markets produced another positive quarter with MSCI AC World gaining over 3%, completing a double-digit year driven by Fed rate cuts and strong earnings. Three key themes defined 2025: decoupling from US dominance as non-US markets strengthened on cheap valuations and tariff impacts, AI momentum overcoming valuation concerns despite temporary DeepSeek scare, and market broadening with increased dispersion benefiting active managers. Small cap performance varied regionally with biotech surging 29% in Q4 and precious metals driving Canadian small caps to best year since 2009. Tariffs triggered domestic-oriented rallies including European defense gaining over 100%. Key risks include elevated US valuations, political uncertainty, and AI volatility despite strong fundamentals. Catalysts include continued Fed cuts, regulatory relaxation, and hyperscaler AI CAPEX commitments. The firm expects 2026 to favor specialized active managers as decoupling trends and AI disruption increase stock dispersion while divergent policies create local growth opportunities.
Global markets completed another strong year with decoupling from US dominance, AI momentum overcoming valuation concerns, and market broadening creating opportunities for active managers through increased dispersion and reduced correlation.
The firm expects decoupling and dispersion trends from 2025 to provide compelling opportunities for skilled active managers in 2026 and beyond. AI advancement as disruptive force likely to increase stock dispersion while divergent global policy opens doors for local company growth. Market structure shifts should reward specialized active managers over backwards-looking passive indices.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 22 2026 | 2025 Q4 | 0700.HK, 1810.HK, BABA, GME, HIMS | AI, Biotech, Decoupling, Global Markets, Mining, Rate Cuts, small caps, tariffs | - | Global markets completed another strong year with decoupling from US dominance driving non-US outperformance, AI momentum overcoming valuation concerns, and market broadening creating active manager opportunities. Small caps varied by region with biotech and precious metals leading. Fed cuts and tariff-driven domestic themes provided catalysts while elevated valuations and political uncertainty remain risks. |
| Apr 8 2025 | 2025 Q1 | - | China, emerging markets, geopolitics, Global Growth, Supply Chain, tariffs, Trade Policy | - | US tariffs create stark winners and losers across emerging markets. Mexico benefits from exemptions and nearshoring trends while China demonstrates resilience through domestic focus. India's structural reforms and limited exposure provide buffer. ASEAN faces significant headwinds requiring defensive positioning. Focus shifts to domestic-oriented companies over export-dependent ones, with opportunities from market volatility. |
| Jan 14 2025 | 2024 Q4 | NVDA | AI, China, emerging markets, Geopolitical, semiconductors, technology, Trade Policy, Valuations | - | ABS expects 2025 success to depend on local market expertise as global opportunities emerge from favorable monetary policy and resilient growth, while geopolitical tensions create regional divergence. Key themes include AI commercialization benefiting Asian supply chains, attractive valuations in Korea and Southeast Asia, China policy support offsetting trade headwinds, and transformation stories in Saudi Arabia, South Africa, and Chile. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
DividendsThe Fund invests approximately 50% of its assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks, known as the Dogs of the Dow strategy. This systematic approach focuses on dividend yield as the primary selection criterion for equity investments. |
Dividend Yield Dogs of the Dow Income DJIA Yield |
| 2025 Q1 |
Trade PolicyThe White House unveiled broad-based tariffs with minimum 10% on all countries except Canada and Mexico, with significantly higher rates for 60 nations. These tariffs have potential to materially affect global economy and equity markets, particularly relevant for emerging market investors given deep integration into global trade. Policy responses and market reactions continue to evolve daily. |
Tariffs Trade War Protectionism Global Trade Negotiations |
ChinaChina faces 54% total tariffs and short-term volatility but Beijing signals preparedness for trade war with potential stimulus measures. Domestic-focused internet companies and pharmaceutical sector appear well-positioned. Chinese equities have decoupled from US stocks since 2021, with Hong Kong assets outperforming US markets in 2024 driven by stronger fundamentals and attractive valuations. |
Stimulus Decoupling Domestic Focus Valuations Resilience | |
IndiaIndia's growth should be impacted only marginally with exports to US accounting for just 2.2% of GDP. Country benefits from fifteen years of reforms, digitization efficiency gains, and corporate deleveraging enabling capex spending. India pursues collaborative trade approach seeking bilateral deal with US and has reduced import duties on electronics and steel. |
Reforms Digitization Bilateral Trade Domestic Economy Resilience | |
ASEANSoutheast Asian nations among hardest hit by tariffs, particularly Vietnam, Thailand, and Indonesia which previously benefited from China trade redirection. Countries face considerable headwinds from direct tariff impact and broader global growth shock. Focus remains on domestically oriented consumer companies with opportunities from market dislocations. |
Supply Chain Consumer Volatility Reallocation Fundamentals | |
MexicoMexico exempted from reciprocal tariffs and USMCA compliant goods, providing strong tailwind as US makes nearshoring central to trade strategy. Mexico positioned to become primary US export hub capturing largest share of supply chain realignment, driving substantial foreign direct investment into northern industrial corridor. |
Nearshoring USMCA Supply Chain Industrial FDI | |
EnergyTariff war leads to decline in energy prices benefiting India's external balance and easing inflationary pressures. GCC countries face indirect effects from declining oil revenues due to global slowdown putting downward pressure on oil prices, though domestic transformation programs provide buffer. |
Oil Prices Global Slowdown Transformation Diversification Revenues | |
| 2024 Q4 |
AI2025 is poised to be a breakthrough year for AI applications and commercialization, creating meaningful opportunities across China, Taiwan, and other markets. The emergence of new consumer electronics like AI glasses, AR glasses, AI smartphones, and AI toys is underway, with China's manufacturing capabilities set to benefit. Taiwan's supply chain is positioned to capitalize on NVIDIA's GB200/GB300 servers and AI infrastructure build-out. |
AI Infrastructure Consumer Electronics Manufacturing Supply Chain Commercialization |
ChinaChinese stock market expected to face headwinds from insufficient internal demand and escalating trade tensions, but domestic policy shifts in 2025 should help tackle economic pressures. Despite challenges, opportunities continue to develop in AI applications, consumer electronics manufacturing, and electric vehicle sectors where comprehensive autonomous driving solutions are maturing. |
Trade Tensions Domestic Policy Manufacturing Consumer Demand Economic Stimulus | |
SemiconductorsTaiwan's semiconductor supply chain is well-positioned for robust growth driven by AI server generations, particularly NVIDIA's GB200/GB300 launches. Korean semiconductor companies, especially AI-related stocks, present opportunities as trade tensions between US and China create advantages for Korean firms competing with Chinese companies that rely on government subsidies. |
AI Servers Supply Chain Trade Competition Manufacturing Technology | |
Electric VehiclesThe EV sector represents a key domain for AI applications, with intensified competition among Chinese auto manufacturers as comprehensive autonomous driving solutions mature. India offers opportunities in electronics manufacturing for electric vehicles, while the sector benefits from broader technology integration trends. |
Autonomous Driving Manufacturing Competition Technology Integration Electronics | |
IndiaIndia delivered +11.2% USD returns in 2024 with expected earnings growth of 14-16% supporting similar 2025 performance. New economy, technology, and technology-enabled sectors remain at the forefront, with attractive opportunities in fintech, music streaming, electronics manufacturing for EVs, and digitally driven corporate services. High dispersion and rapid growth dynamics continue to create opportunities. |
Technology Fintech Growth Digitization New Economy | |
Trade PolicyTrade tensions between US and China present significant opportunities for Korean industries competing with China, including semiconductors, shipbuilding, defense equipment, and alternative energy. Trump's announced additional 10% tariff on Chinese imports with possibility of further increases creates both risks and opportunities depending on how negotiations develop. |
Tariffs Competition Geopolitical Export Impact Supply Chain |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 0700.HK | Shinya also visited Shenzhen, where Star Magnolia Capital organized an educational visit for our families to Tencent's headquarters, alongside meetings with several promising early-stage companies. |
| 1810.HK | Shares declined amid inconsistent growth in the smartphone business, with strong competition limiting market share gains, while rising memory chip prices also pressured smartphone margins. In the electric vehicle business, Xiaomi has struggled to scale production to meet order demand. |
| BABA | Alibaba was a detractor during the quarter after the company reported mixed fiscal Q2 results. While cloud revenue growth accelerated and margins remained stable, the core commerce business struggled with slowing growth and significant profit pressure, particularly in the quick commerce segment where heavy investment and intense competition led to a sharp decline in profitability. |
| GME | GameStop (-26%) |
| HIMS | Hims & Hers Health (-43%) |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||