Sands Capital International Growth Fund

Investor Summary

Sands Capital Management, LLC is a Delaware-registered limited liability company established in 2005, headquartered in Arlington, Virginia. The firm manages $56 billion in client assets as of December 2025 and employs 177 total employees, with 64 performing investment advisory functions. The company maintains international operations with offices in Nevada, Singapore, California, London, New York, and Puerto Rico, serving clients globally with 17% of clients being non-U.S. persons. The firm has been led by CEO Frank Sands Jr. since 2008, with Co-Chief Investment Officers Frank Melville Sands and Thomas Perry Williams. Approximately half of the firm's roughly 200 employees own a stake in the company, aiding key personnel retention.

Fund Strategy

The fund seeks to own the best growth businesses outside of the United States, focusing on companies with durable, above-average earnings growth underpinned by secular change in both developed and emerging markets. The investment philosophy is based on the belief that over time, stock prices will reflect the earnings power and growth of the underlying businesses. The team focuses on companies with sustainable above-average earnings growth, leadership positions, competitive advantages, financial strength, and reasonable valuations. As long-term investors, they don't manage risk through hedges or derivatives but adhere to their six investment criteria and focus on the durability of long-term earnings potential as the best way to mitigate long-term risk as business owners.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
5.6%	-14.8%	-14.8%

Executive Summary

Sands Capital's International Growth strategy underperformed in Q1 2026, declining 14.8% versus the MSCI ACWI ex-USA's -0.7% return, as growth stocks faced broad multiple compression amid geopolitical tensions and AI disruption concerns. The portfolio benefited from strong semiconductor holdings including TSMC, ASML, and new position SK hynix, which capitalized on accelerating AI infrastructure demand. TSMC raised its capex plan to $54 billion and expects 55% annualized AI revenue growth through 2029. Japanese holdings like Ajinomoto performed well supported by corporate governance reforms and political stability. However, software and e-commerce names including Shopify, Sea, and Adyen declined on AI disruption fears and competitive pressures. The portfolio's zero China exposure since 2023 provided relative tailwinds as Chinese benchmark weights underperformed. The strategy's valuation multiple compressed from 26x to 22x, reaching its narrowest premium to the benchmark since inception. Management expects 24% annualized earnings growth over the next five years, positioning the portfolio attractively despite near-term volatility from geopolitical developments including the Iran conflict.

Forward Outlook

Short-term narratives are driving market behavior, but their economic impact will unfold over different time horizons. While advances in AI reinforce the potential for a productivity cycle, they also introduce uncertainty around competitive dynamics. Our expectation for 24 percent annualized earnings growth, coupled with an all-time low relative valuation, presents an attractive setup for the next five years.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 25 2026	2026 Q1	000660 KS, ADYEN.AS, ASML, NU, SE, SHOP.TO, TSM	AI, geopolitics, growth, international, Japan, semiconductors, technology, valuation	-	International Growth declined 14.8% in Q1 2026 as AI disruption concerns weighed on software holdings while semiconductor names like TSMC and ASML benefited from accelerating AI infrastructure demand. The portfolio's Japan overweight and China avoidance provided relative tailwinds. Valuation compression to 22x forward earnings represents the narrowest premium since inception, setting up attractive five-year prospects.
Jan 22 2026	2025 Q4	6861.T, ADDTECH-B.ST, ADYEN.AS, AJINOMOTO.T, ARGX, ASML, BAJFINANCE.NS, DNP.WA, DOL.TO, EL.PA, FLUT, HDFCBANK.NS, HEXA-B.ST, III.L, MELI, NU, PME.AX, PNDORA.CO, RACE, SE, SHOP.TO, SPOT, STVG.MI, TSM, VACN.SW, WEGE3.SA	AI, defense, energy, growth, international, Robotics, Space, technology	GALD SW 2330 TT VACN SW SHOP SE 2802 JP SPOT RACE IM MELI EL FP	International Growth underperformed in Q4 despite strong earnings growth as style headwinds favored value over growth. The portfolio maintains disciplined exposure to AI, defense, robotics, energy transition, and space themes through quality businesses with clear economic models. Historically compressed valuations combined with above-benchmark earnings growth create compelling long-term opportunities despite near-term style challenges.
Oct 20 2025	2025 Q3	2914.T, 6758.T, ADYEN.AS, ARGX, ASML, BAJFINANCE.NS, CSU.TO, DOL.TO, FLUT, HDFCBANK.NS, HEXAB.ST, III.L, MELI, NU, PNDORA.CO, RACE, SE, SHOP.TO, SPOT, TSM	AI, Asia, E-Commerce, Europe, growth, international, semiconductors, technology	-	International Growth underperformed in Q3 2025 due to valuation pressure on growth stocks and style rotation favoring value. Strong AI-driven semiconductor demand benefited TSMC while e-commerce platforms like Shopify showed resilience. Portfolio positioning emphasizes higher-quality businesses with stronger balance sheets, trading at attractive valuations despite near-term growth style headwinds.
Jul 21 2025	2025 Q2	4956.T, 6273.T, 6861.T, ADYEN.AS, ASML, BAJFINANCE.NS, CSU.TO, DNP.WA, DOL.TO, EVT.DE, FLTR, GALDERMA.SW, HDFCBANK.NS, HEXAB.ST, IMCD.AS, MELI, ONON, PME.AX, PNDORA.CO, RACE, SE, SHOP.TO, SPOT, TSM, WEGE3.SA	Asia, Automation, E-Commerce, Entertainment, Europe, growth, international, semiconductors, technology	MELI SPOT 2330 TT SE EVD GR	International Growth delivered 18.1% quarterly returns, outperforming benchmarks through strong security selection in e-commerce leaders MercadoLibre and Sea, streaming giant Spotify, and semiconductor leader Taiwan Semiconductor. The portfolio has been upgraded with higher-quality businesses and stronger balance sheets. Despite market volatility from AI disruption and geopolitical tensions, the strategy maintains conviction in owning the best global growth businesses long-term.
Mar 31 2025	2025 Q1	2914.T, 6098.T, 6861.T, ADYEN.AS, ASML, BAJFINANCE.NS, CSU.TO, FLUT, HDFCBANK.NS, HEXAB.ST, LONZA.SW, MELI, PNDORA.CO, RACE, SE, SHOP.TO, SIKA.SW, SPOT, TSM, WEG.SA	Asia, emerging markets, Europe, growth, international, tariffs, trade war	-	International Growth underperformed in Q1 as growth stocks faced severe headwinds amid trade war concerns. Strong performance from Sea, Spotify, and MercadoLibre was offset by weakness in Taiwan Semiconductor and Flutter Entertainment. The manager remains cautious on escalating U.S.-China trade tensions but believes the portfolio is better positioned for uncertainty with improved diversification and fundamentals.
Dec 31 2024	2024 Q4	2802.T, 6098.T, 6273.T, 6861.T, ADYEN.AS, ASML, BAJFINANCE.NS, CSU.TO, DOL.TO, FERG.L, FLTR, HDFCBANK.NS, HEXAB.ST, LONN.SW, MELI, PNDORA.CO, SE, SHOP.TO, SIK.SW, SPOT, TSM, VACN.SW, WEGE3.SA, ZAL.DE	AI, E-Commerce, Energy Transition, growth, innovation, international, semiconductors, technology	-	Sands Capital's International Growth strategy delivered 8.4% returns in 2024 despite Q4 weakness, maintaining conviction in concentrated growth businesses outside the US. Strong AI demand benefited Taiwan Semiconductor while energy transition and e-commerce themes drive portfolio positioning. The firm sees opportunities in relative value anomalies as business fundamentals improve faster than stock prices, expecting broader market leadership ahead.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 25 2026

2026 Q1

000660 KS, ADYEN.AS, ASML, NU, SE, SHOP.TO, TSM

AI, geopolitics, growth, international, Japan, semiconductors, technology, valuation

International Growth declined 14.8% in Q1 2026 as AI disruption concerns weighed on software holdings while semiconductor names like TSMC and ASML benefited from accelerating AI infrastructure demand. The portfolio's Japan overweight and China avoidance provided relative tailwinds. Valuation compression to 22x forward earnings represents the narrowest premium since inception, setting up attractive five-year prospects.

Jan 22 2026

2025 Q4

6861.T, ADDTECH-B.ST, ADYEN.AS, AJINOMOTO.T, ARGX, ASML, BAJFINANCE.NS, DNP.WA, DOL.TO, EL.PA, FLUT, HDFCBANK.NS, HEXA-B.ST, III.L, MELI, NU, PME.AX, PNDORA.CO, RACE, SE, SHOP.TO, SPOT, STVG.MI, TSM, VACN.SW, WEGE3.SA

AI, defense, energy, growth, international, Robotics, Space, technology

GALD SW
2330 TT
VACN SW
SHOP
SE
2802 JP
SPOT
RACE IM
MELI
EL FP

International Growth underperformed in Q4 despite strong earnings growth as style headwinds favored value over growth. The portfolio maintains disciplined exposure to AI, defense, robotics, energy transition, and space themes through quality businesses with clear economic models. Historically compressed valuations combined with above-benchmark earnings growth create compelling long-term opportunities despite near-term style challenges.

Oct 20 2025

2025 Q3

2914.T, 6758.T, ADYEN.AS, ARGX, ASML, BAJFINANCE.NS, CSU.TO, DOL.TO, FLUT, HDFCBANK.NS, HEXAB.ST, III.L, MELI, NU, PNDORA.CO, RACE, SE, SHOP.TO, SPOT, TSM

AI, Asia, E-Commerce, Europe, growth, international, semiconductors, technology

International Growth underperformed in Q3 2025 due to valuation pressure on growth stocks and style rotation favoring value. Strong AI-driven semiconductor demand benefited TSMC while e-commerce platforms like Shopify showed resilience. Portfolio positioning emphasizes higher-quality businesses with stronger balance sheets, trading at attractive valuations despite near-term growth style headwinds.

Jul 21 2025

2025 Q2

4956.T, 6273.T, 6861.T, ADYEN.AS, ASML, BAJFINANCE.NS, CSU.TO, DNP.WA, DOL.TO, EVT.DE, FLTR, GALDERMA.SW, HDFCBANK.NS, HEXAB.ST, IMCD.AS, MELI, ONON, PME.AX, PNDORA.CO, RACE, SE, SHOP.TO, SPOT, TSM, WEGE3.SA

Asia, Automation, E-Commerce, Entertainment, Europe, growth, international, semiconductors, technology

MELI
SPOT
2330 TT
SE
EVD GR

International Growth delivered 18.1% quarterly returns, outperforming benchmarks through strong security selection in e-commerce leaders MercadoLibre and Sea, streaming giant Spotify, and semiconductor leader Taiwan Semiconductor. The portfolio has been upgraded with higher-quality businesses and stronger balance sheets. Despite market volatility from AI disruption and geopolitical tensions, the strategy maintains conviction in owning the best global growth businesses long-term.

Mar 31 2025

2025 Q1

2914.T, 6098.T, 6861.T, ADYEN.AS, ASML, BAJFINANCE.NS, CSU.TO, FLUT, HDFCBANK.NS, HEXAB.ST, LONZA.SW, MELI, PNDORA.CO, RACE, SE, SHOP.TO, SIKA.SW, SPOT, TSM, WEG.SA

Asia, emerging markets, Europe, growth, international, tariffs, trade war

International Growth underperformed in Q1 as growth stocks faced severe headwinds amid trade war concerns. Strong performance from Sea, Spotify, and MercadoLibre was offset by weakness in Taiwan Semiconductor and Flutter Entertainment. The manager remains cautious on escalating U.S.-China trade tensions but believes the portfolio is better positioned for uncertainty with improved diversification and fundamentals.

Dec 31 2024

2024 Q4

2802.T, 6098.T, 6273.T, 6861.T, ADYEN.AS, ASML, BAJFINANCE.NS, CSU.TO, DOL.TO, FERG.L, FLTR, HDFCBANK.NS, HEXAB.ST, LONN.SW, MELI, PNDORA.CO, SE, SHOP.TO, SIK.SW, SPOT, TSM, VACN.SW, WEGE3.SA, ZAL.DE

AI, E-Commerce, Energy Transition, growth, innovation, international, semiconductors, technology

Sands Capital's International Growth strategy delivered 8.4% returns in 2024 despite Q4 weakness, maintaining conviction in concentrated growth businesses outside the US. Strong AI demand benefited Taiwan Semiconductor while energy transition and e-commerce themes drive portfolio positioning. The firm sees opportunities in relative value anomalies as business fundamentals improve faster than stock prices, expecting broader market leadership ahead.

QUARTER	THEMES	TAGS
2026 Q1	AI AI is driving accelerating demand for semiconductors and infrastructure, with TSMC reporting 55% annualized AI revenue growth through 2029. ASML saw record bookings driven by AI-related demand. However, AI disruption concerns weighed on software and consumer internet holdings early in the quarter.	Semiconductors Infrastructure Software Disruption Demand
	Semiconductors Strong performance from semiconductor holdings including TSMC, ASML, and new position SK hynix. TSMC raised capex to $54 billion to support AI demand, while ASML reported record bookings. SK hynix leads in high-bandwidth memory essential for AI servers.	Memory Equipment Foundries AI Capex
	E-commerce Mixed performance with Shopify declining amid AI disruption concerns despite strong 30% GMV growth, while Sea faced pressure from TikTok competition and AI disintermediation risk. MercadoLibre remains a core holding in Latin American e-commerce.	Software Platforms Competition Growth Disruption
	Japan Strong performance from Japanese holdings including Ajinomoto and Keyence, supported by corporate governance reforms and political stability following the LDP's landslide victory. The portfolio's overweight to Japan created relative tailwinds.	Governance Politics Reform Stability Outperformance
	China Portfolio has zero exposure to China after exiting entirely since 2023 due to governance risks. Major Chinese benchmark weights like Tencent and Alibaba were perceived as AI laggards, creating relative tailwinds for the portfolio.	Governance Risk Avoidance Benchmarks Underperformance
2025 Q4	E-commerce Carvana was the top performer as a vertically integrated e-commerce platform for used cars. The company eliminates traditional dealerships and provides a haggle-free experience with vast nationwide inventory. With less than 2% market share, Carvana appears to have a long runway of profitable growth ahead.	Used Cars Digital Platform Market Share
	Energy Transition Talen Energy was a major contributor for the third consecutive year as an independent power producer owning nuclear facilities. The company expanded its relationship with Amazon Web Services to provide carbon-free energy for data centers and acquired gas-fired power plants for $3.8 billion.	Nuclear Power Data Centers Carbon Free
	Data Centers Talen Energy's expansion of its relationship with Amazon Web Services to provide carbon-free energy for data centers was highlighted as a key development. The manager sees potential benefits from rising electricity demand driven by data center growth.	Electricity Demand AWS Infrastructure
2025 Q3	AI AI-driven demand continues to support semiconductor and technology sectors, particularly in Taiwan and South Korea. TSMC benefits from strong AI-related demand and is expanding CoWoS capacity. However, AI concerns are growing around certain businesses like Constellation Software, with markets conflating AI disruption risks with operational performance.	Semiconductors Technology Disruption Infrastructure Demand
	E-commerce E-commerce platforms showed strong performance with Shopify delivering its largest beat in five quarters and Sea reporting strong GMV growth. MercadoLibre faces competitive pressure in Brazil but benefits from low ecommerce penetration. The sector demonstrates resilience with continued growth momentum and international expansion opportunities.	Platforms GMV Brazil Penetration Competition
	Semiconductors Semiconductor sector led by AI infrastructure buildout with TSMC raising full-year guidance and expanding capacity. The company expects 20% annualized earnings growth through 2029 driven by AI, smartphones, PCs, servers, and automotive chips. Supply-demand gaps in advanced packaging remain a key constraint.	TSMC Capacity CoWoS Foundries Growth
	Biotechnology Galderma's Nemluvio drug for atopic dermatitis generated $131 million in sales, well ahead of consensus estimates. The drug is positioned to capture about 10% of the $20 billion AD market with potential expansion into additional indications. Argenx's Vyvgart is demonstrating pipeline-in-a-product potential across multiple therapeutic areas.	Nemluvio Vyvgart Dermatitis Pipeline Therapeutics
	Payments Adyen's payment platform showed resilience with 18% revenue growth despite FX headwinds and tariff impacts. EBITDA margins expanded 340 basis points to 50% supported by strong cost discipline. The embedded finance business is gaining traction with issuing volumes more than doubling in the first half.	Adyen Margins Embedded Finance Growth
2025 Q2	E-commerce The strategy holds significant positions in leading e-commerce platforms including MercadoLibre in Latin America and Sea in Southeast Asia. MercadoLibre delivered strong quarterly results driven by Argentina's higher contribution margins, while Sea posted strong results with gaming bookings up 51% year-over-year and expanding ecommerce margins.	Marketplaces Fintech Digital Platforms Latin America Southeast Asia
	Streaming Spotify, the world's largest subscription streaming audio service, contributed positively with premium subscriber net additions of five million and premium revenue growing sixteen percent year over year. The company demonstrated strong momentum in paid subscriber growth and operating margin expansion.	Music Subscription Audio Premium Margin Expansion
	Semiconductors Taiwan Semiconductor reported strong quarterly results supported by ongoing AI-related semiconductor demand. Management reiterated mid-20% revenue growth targets and plans to double CoWoS packaging capacity, with AI-related revenue expected to grow at mid-40% compound annual rate through 2029.	AI Chip Manufacturing CoWoS Foundries Technology
	Entertainment CTS Eventim, the leading European event ticketing business, delivered solid results with revenue up 22% year over year. The company highlighted ongoing international expansion with 68% of ticket sales occurring outside Germany, up from 56% in 2023.	Event Ticketing International Expansion Europe Live Events Growth
	Automation SMC Corporation, the global leader in pneumatic motion control equipment crucial for robotics and factory automation, faced tariff concerns but showed improving orders and notable strength in China where the company is no longer losing market share.	Robotics Factory Automation Pneumatic Motion Control Industrial
2025 Q1	E-commerce Portfolio includes leading e-commerce platforms like Sea's Shopee which grew gross merchandise volume 24% year-over-year while delivering positive EBITDA margin, and MercadoLibre which serves 100 million annual unique customers. Shopify continues to execute well with accelerating growth across gross merchandise value, revenue, and margins.	Marketplaces Digital Commerce GMV Growth Platform Economics Cross-border
	AI Taiwan Semiconductor is positioned as a key beneficiary of AI chip demand, with revenue from AI accelerators more than tripling in 2024 to account for 15% of total revenue. Management expects this figure to double again in 2025 and grow at a mid-40% annual rate over the next five years.	Semiconductors AI Accelerators Chip Demand Infrastructure Computing
	Streaming Spotify delivered strong fourth-quarter results with robust revenue and monthly active user growth, along with gross and operating margin expansion. Management is calling 2025 the year of accelerated execution following 2024's year of monetization, signaling continued operating expense discipline and product innovation.	Audio Streaming Subscription Growth Monetization User Engagement Premium Tiers
	Gaming Sea operates leading platforms for video games alongside ecommerce and digital financial services. The company reported its fifth consecutive beat-and-raise quarter with 2025 guidance pointing to inflections across all three business units including gaming expected to generate approximately $1 billion in EBITDA.	Video Games Digital Entertainment Southeast Asia Platform Business EBITDA Growth
	Sports Betting Flutter Entertainment faced volatility in Q4 with unusually customer-friendly sports outcomes affecting margins, but structural U.S. margins still expanded 100 basis points year-over-year to a record 14.5%. The company remains a leading global operator with strong long-term fundamentals despite inherent business volatility.	Online Betting Sports Outcomes Margin Expansion Parlay Bets Regulatory Environment
2024 Q4	AI AI has rapidly evolved from a conceptual novelty to a transformative tool, reshaping industries and redefining how businesses create value. Many portfolio businesses are finding specific use cases to leverage AI, including AppLovin's AI advertising placement platform and ServiceNow's automation capabilities. The firm owns businesses that enable AI at the infrastructure layer, such as NVIDIA.	Infrastructure Automation Advertising Platforms Transformation
	E-commerce Businesses around the world are finding new ways to seize the promise of an ever-expanding digital economy. Examples include Grab Holdings emerging as a leading super app in Southeast Asia and Full Truck Alliance becoming the 'Uber for trucks' in China, streamlining freight logistics through two-sided marketplaces.	Digital Marketplaces Platforms Logistics Apps
	Energy Transition The firm has found criteria-meeting businesses leveraged to secular trends of electrification, sustainable energy and infrastructure. Chinese electric vehicle manufacturer BYD and lithium battery maker CATL are pioneering clean transportation and renewable energy solutions. Companies like Tetra Tech, Sika, and WEG work to create greener and more sustainable solutions.	Electrification Batteries Sustainable Clean Infrastructure
	Semiconductors Taiwan Semiconductor showcased strong continued demand for AI chips with revenue increasing 29% and earnings rising 54% year-over-year. The company's competitive position within leading-edge chip fabrication has improved, with higher demand for next-generation nodes and capacity advantages over competitors like Intel and Samsung.	Foundries Manufacturing Technology Capacity Leadership

QUARTER

THEMES

AI

AI is driving accelerating demand for semiconductors and infrastructure, with TSMC reporting 55% annualized AI revenue growth through 2029. ASML saw record bookings driven by AI-related demand. However, AI disruption concerns weighed on software and consumer internet holdings early in the quarter.

Semiconductors Infrastructure Software Disruption Demand

Semiconductors

Strong performance from semiconductor holdings including TSMC, ASML, and new position SK hynix. TSMC raised capex to $54 billion to support AI demand, while ASML reported record bookings. SK hynix leads in high-bandwidth memory essential for AI servers.

Memory Equipment Foundries AI Capex

E-commerce

Mixed performance with Shopify declining amid AI disruption concerns despite strong 30% GMV growth, while Sea faced pressure from TikTok competition and AI disintermediation risk. MercadoLibre remains a core holding in Latin American e-commerce.

Software Platforms Competition Growth Disruption

Japan

Strong performance from Japanese holdings including Ajinomoto and Keyence, supported by corporate governance reforms and political stability following the LDP's landslide victory. The portfolio's overweight to Japan created relative tailwinds.

Governance Politics Reform Stability Outperformance

China

Portfolio has zero exposure to China after exiting entirely since 2023 due to governance risks. Major Chinese benchmark weights like Tencent and Alibaba were perceived as AI laggards, creating relative tailwinds for the portfolio.

Governance Risk Avoidance Benchmarks Underperformance

2025 Q4

E-commerce

Carvana was the top performer as a vertically integrated e-commerce platform for used cars. The company eliminates traditional dealerships and provides a haggle-free experience with vast nationwide inventory. With less than 2% market share, Carvana appears to have a long runway of profitable growth ahead.

Used Cars Digital Platform Market Share

Energy Transition

Talen Energy was a major contributor for the third consecutive year as an independent power producer owning nuclear facilities. The company expanded its relationship with Amazon Web Services to provide carbon-free energy for data centers and acquired gas-fired power plants for $3.8 billion.

Nuclear Power Data Centers Carbon Free

Data Centers

Talen Energy's expansion of its relationship with Amazon Web Services to provide carbon-free energy for data centers was highlighted as a key development. The manager sees potential benefits from rising electricity demand driven by data center growth.

Electricity Demand AWS Infrastructure

2025 Q3

AI

AI-driven demand continues to support semiconductor and technology sectors, particularly in Taiwan and South Korea. TSMC benefits from strong AI-related demand and is expanding CoWoS capacity. However, AI concerns are growing around certain businesses like Constellation Software, with markets conflating AI disruption risks with operational performance.

Semiconductors Technology Disruption Infrastructure Demand

E-commerce

E-commerce platforms showed strong performance with Shopify delivering its largest beat in five quarters and Sea reporting strong GMV growth. MercadoLibre faces competitive pressure in Brazil but benefits from low ecommerce penetration. The sector demonstrates resilience with continued growth momentum and international expansion opportunities.

Platforms GMV Brazil Penetration Competition

Semiconductors

Semiconductor sector led by AI infrastructure buildout with TSMC raising full-year guidance and expanding capacity. The company expects 20% annualized earnings growth through 2029 driven by AI, smartphones, PCs, servers, and automotive chips. Supply-demand gaps in advanced packaging remain a key constraint.

TSMC Capacity CoWoS Foundries Growth

Biotechnology

Galderma's Nemluvio drug for atopic dermatitis generated $131 million in sales, well ahead of consensus estimates. The drug is positioned to capture about 10% of the $20 billion AD market with potential expansion into additional indications. Argenx's Vyvgart is demonstrating pipeline-in-a-product potential across multiple therapeutic areas.

Nemluvio Vyvgart Dermatitis Pipeline Therapeutics

Payments

Adyen's payment platform showed resilience with 18% revenue growth despite FX headwinds and tariff impacts. EBITDA margins expanded 340 basis points to 50% supported by strong cost discipline. The embedded finance business is gaining traction with issuing volumes more than doubling in the first half.

Adyen Margins Embedded Finance Growth

2025 Q2

E-commerce

The strategy holds significant positions in leading e-commerce platforms including MercadoLibre in Latin America and Sea in Southeast Asia. MercadoLibre delivered strong quarterly results driven by Argentina's higher contribution margins, while Sea posted strong results with gaming bookings up 51% year-over-year and expanding ecommerce margins.

Marketplaces Fintech Digital Platforms Latin America Southeast Asia

Streaming

Spotify, the world's largest subscription streaming audio service, contributed positively with premium subscriber net additions of five million and premium revenue growing sixteen percent year over year. The company demonstrated strong momentum in paid subscriber growth and operating margin expansion.

Music Subscription Audio Premium Margin Expansion

Semiconductors

Taiwan Semiconductor reported strong quarterly results supported by ongoing AI-related semiconductor demand. Management reiterated mid-20% revenue growth targets and plans to double CoWoS packaging capacity, with AI-related revenue expected to grow at mid-40% compound annual rate through 2029.

AI Chip Manufacturing CoWoS Foundries Technology

Entertainment

CTS Eventim, the leading European event ticketing business, delivered solid results with revenue up 22% year over year. The company highlighted ongoing international expansion with 68% of ticket sales occurring outside Germany, up from 56% in 2023.

Event Ticketing International Expansion Europe Live Events Growth

Automation

SMC Corporation, the global leader in pneumatic motion control equipment crucial for robotics and factory automation, faced tariff concerns but showed improving orders and notable strength in China where the company is no longer losing market share.

Robotics Factory Automation Pneumatic Motion Control Industrial

2025 Q1

E-commerce

Portfolio includes leading e-commerce platforms like Sea's Shopee which grew gross merchandise volume 24% year-over-year while delivering positive EBITDA margin, and MercadoLibre which serves 100 million annual unique customers. Shopify continues to execute well with accelerating growth across gross merchandise value, revenue, and margins.

Marketplaces Digital Commerce GMV Growth Platform Economics Cross-border

AI

Taiwan Semiconductor is positioned as a key beneficiary of AI chip demand, with revenue from AI accelerators more than tripling in 2024 to account for 15% of total revenue. Management expects this figure to double again in 2025 and grow at a mid-40% annual rate over the next five years.

Semiconductors AI Accelerators Chip Demand Infrastructure Computing

Streaming

Spotify delivered strong fourth-quarter results with robust revenue and monthly active user growth, along with gross and operating margin expansion. Management is calling 2025 the year of accelerated execution following 2024's year of monetization, signaling continued operating expense discipline and product innovation.

Audio Streaming Subscription Growth Monetization User Engagement Premium Tiers

Gaming

Sea operates leading platforms for video games alongside ecommerce and digital financial services. The company reported its fifth consecutive beat-and-raise quarter with 2025 guidance pointing to inflections across all three business units including gaming expected to generate approximately $1 billion in EBITDA.

Video Games Digital Entertainment Southeast Asia Platform Business EBITDA Growth

Sports Betting

Flutter Entertainment faced volatility in Q4 with unusually customer-friendly sports outcomes affecting margins, but structural U.S. margins still expanded 100 basis points year-over-year to a record 14.5%. The company remains a leading global operator with strong long-term fundamentals despite inherent business volatility.

Online Betting Sports Outcomes Margin Expansion Parlay Bets Regulatory Environment

2024 Q4

AI

AI has rapidly evolved from a conceptual novelty to a transformative tool, reshaping industries and redefining how businesses create value. Many portfolio businesses are finding specific use cases to leverage AI, including AppLovin's AI advertising placement platform and ServiceNow's automation capabilities. The firm owns businesses that enable AI at the infrastructure layer, such as NVIDIA.

Infrastructure Automation Advertising Platforms Transformation

E-commerce

Businesses around the world are finding new ways to seize the promise of an ever-expanding digital economy. Examples include Grab Holdings emerging as a leading super app in Southeast Asia and Full Truck Alliance becoming the 'Uber for trucks' in China, streamlining freight logistics through two-sided marketplaces.

Digital Marketplaces Platforms Logistics Apps

Energy Transition

The firm has found criteria-meeting businesses leveraged to secular trends of electrification, sustainable energy and infrastructure. Chinese electric vehicle manufacturer BYD and lithium battery maker CATL are pioneering clean transportation and renewable energy solutions. Companies like Tetra Tech, Sika, and WEG work to create greener and more sustainable solutions.

Electrification Batteries Sustainable Clean Infrastructure

Semiconductors

Taiwan Semiconductor showcased strong continued demand for AI chips with revenue increasing 29% and earnings rising 54% year-over-year. The company's competitive position within leading-edge chip fabrication has improved, with higher demand for next-generation nodes and capacity advantages over competitors like Intel and Samsung.

Foundries Manufacturing Technology Capacity Leadership

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jan 22, 2026	Fund Letters	David E. Levanson	2802 JP	Ajinomoto Co Inc	Consumer Staples	Food Products	Bull	New York Stock Exchange	Amino-Acids, cashflow, healthcare, turnaround	Login
Jan 22, 2026	Fund Letters	David E. Levanson	SPOT	Spotify Technology SA	Communication Services	Entertainment	Bull	New York Stock Exchange	AI, Margins, Pricing, Streaming	Login
Jan 22, 2026	Fund Letters	David E. Levanson	RACE IM	Ferrari NV	Consumer Discretionary	Automobiles	Bull	Borsa Istanbul	Brand, Electrification, Luxury, Pricing	Login
Jan 22, 2026	Fund Letters	David E. Levanson	MELI	MercadoLibre Inc	Consumer Discretionary	Broadline Retail	Bull	NASDAQ	ecommerce, Fintech, Logistics, valuation	Login
Jan 22, 2026	Fund Letters	David E. Levanson	EL FP	EssilorLuxottica SA	Health Care	Health Care Equipment & Supplies	Bull	Euronext Stock Exchange	AI, Eyewear, Integration, Pricing, Wearables	Login
Jan 22, 2026	Fund Letters	David E. Levanson	GALD SW	Galderma Group AG	Health Care	Pharmaceuticals	Bull	Swiss Exchange	Aesthetics, biologics, dermatology, Prescriptions, Pricing	Login
Jan 22, 2026	Fund Letters	David E. Levanson	2330 TT	Taiwan Semiconductor Manufacturing Co Ltd	Information Technology	Semiconductors	Bull	New York Stock Exchange	AI, CapEx, Foundry, Pricing, semiconductors	Login
Jan 22, 2026	Fund Letters	David E. Levanson	VACN SW	VAT Group AG	Industrials	Machinery	Bull	Swiss Exchange	AI, Cyclicality, Margins, semiconductor equipment, Valves	Login
Jan 22, 2026	Fund Letters	David E. Levanson	SHOP	Shopify Inc	Information Technology	IT Services	Bull	New York Stock Exchange	AI, ecommerce, GMV, Payments, platform	Login
Jan 22, 2026	Fund Letters	David E. Levanson	SE	Sea Ltd	Consumer Discretionary	Broadline Retail	Bull	New York Stock Exchange	ecommerce, Fintech, Margins, Reinvestment, Southeast Asia	Login
Jul 21, 2025	Fund Letters	David E. Levanson	SE	Sea Limited	Communication Services	Entertainment	Bull	New York Stock Exchange	ecommerce, Fintech, Gaming, growth, Margins	Login
Jul 21, 2025	Fund Letters	David E. Levanson	EVD GR	CTS Eventim AG & Co. KGaA	Communication Services	Entertainment	Bull	XETRA	Demand, entertainment, expansion, Margins, Ticketing	Login
Jul 21, 2025	Fund Letters	David E. Levanson	MELI	MercadoLibre, Inc.	Consumer Discretionary	Broadline Retail	Bull	NASDAQ	ecommerce, Ecosystem, Fintech, Logistics, Penetration	Login
Jul 21, 2025	Fund Letters	David E. Levanson	SPOT	Spotify Technology S.A.	Communication Services	Entertainment	Bull	New York Stock Exchange	advertising, Margins, monetization, Streaming, Subscriptions	Login
Jul 21, 2025	Fund Letters	David E. Levanson	2330 TT	Taiwan Semiconductor Manufacturing Co., Ltd.	Information Technology	Semiconductors & Semiconductor Equipment	Bull	Taiwan Stock Exchange	Advancedpackaging, AI, Capacity, Foundry, semiconductors	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jan 22, 2026

Fund Letters

David E. Levanson

2802 JP

Ajinomoto Co Inc

Consumer Staples

Food Products

Bull

New York Stock Exchange

Amino-Acids, cashflow, healthcare, turnaround

Jan 22, 2026

Fund Letters

David E. Levanson

SPOT

Spotify Technology SA

Communication Services

Entertainment

Bull

New York Stock Exchange

AI, Margins, Pricing, Streaming

Jan 22, 2026

Fund Letters

David E. Levanson

RACE IM

Ferrari NV

Consumer Discretionary

Automobiles

Bull

Borsa Istanbul

Brand, Electrification, Luxury, Pricing

Jan 22, 2026

Fund Letters

David E. Levanson

MELI

MercadoLibre Inc

Consumer Discretionary

Broadline Retail

Bull

NASDAQ

ecommerce, Fintech, Logistics, valuation

Jan 22, 2026

Fund Letters

David E. Levanson

EL FP

EssilorLuxottica SA

Health Care

Health Care Equipment & Supplies

Bull

Euronext Stock Exchange

AI, Eyewear, Integration, Pricing, Wearables

Jan 22, 2026

Fund Letters

David E. Levanson

GALD SW

Galderma Group AG

Health Care

Pharmaceuticals

Bull

Swiss Exchange

Aesthetics, biologics, dermatology, Prescriptions, Pricing

Jan 22, 2026

Fund Letters

David E. Levanson

2330 TT

Taiwan Semiconductor Manufacturing Co Ltd

Information Technology

Semiconductors

Bull

New York Stock Exchange

AI, CapEx, Foundry, Pricing, semiconductors

Jan 22, 2026

Fund Letters

David E. Levanson

VACN SW

VAT Group AG

Industrials

Machinery

Bull

Swiss Exchange

AI, Cyclicality, Margins, semiconductor equipment, Valves

Jan 22, 2026

Fund Letters

David E. Levanson

SHOP

Shopify Inc

Information Technology

IT Services

Bull

New York Stock Exchange

AI, ecommerce, GMV, Payments, platform

Jan 22, 2026

Fund Letters

David E. Levanson

Sea Ltd

Consumer Discretionary

Broadline Retail

Bull

New York Stock Exchange

ecommerce, Fintech, Margins, Reinvestment, Southeast Asia

Jul 21, 2025

Fund Letters

David E. Levanson

Sea Limited

Communication Services

Entertainment

Bull

New York Stock Exchange

ecommerce, Fintech, Gaming, growth, Margins

Jul 21, 2025

Fund Letters

David E. Levanson

EVD GR

CTS Eventim AG & Co. KGaA

Communication Services

Entertainment

Bull

XETRA

Demand, entertainment, expansion, Margins, Ticketing

Jul 21, 2025

Fund Letters

David E. Levanson

MELI

MercadoLibre, Inc.

Consumer Discretionary

Broadline Retail

Bull

NASDAQ

ecommerce, Ecosystem, Fintech, Logistics, Penetration

Jul 21, 2025

Fund Letters

David E. Levanson

SPOT

Spotify Technology S.A.

Communication Services

Entertainment

Bull

New York Stock Exchange

advertising, Margins, monetization, Streaming, Subscriptions

Jul 21, 2025

Fund Letters

David E. Levanson

2330 TT

Taiwan Semiconductor Manufacturing Co., Ltd.

Information Technology

Semiconductors & Semiconductor Equipment

Bull

Taiwan Stock Exchange

Advancedpackaging, AI, Capacity, Foundry, semiconductors

TICKER	COMMENTARY
TSM	TSMC is the world's largest producer of leading-edge logic chips by market share. TSMC's latest results highlighted accelerating AI demand and reinforced the company's position as a primary beneficiary of that trend. The update included two new datapoints that strengthened our outlook for AI accelerator demand. First, TSMC Chairman C.C. Wei said he personally spoke with the company's largest hyperscaler AI customers and concluded that their requests for additional capacity were supported by end demand. Given TSMC's historically conservative posture, we view this as a meaningful signal. Second, the company reinforced that confidence with a materially higher capital expenditure plan of $54 billion for 2026, well above consensus estimates of $47.8 billion, to support expected AI-driven demand. TSMC also reported results and issued guidance that exceeded our expectations and those of consensus. Management now expects AI-related revenue to grow at a 55 percent annualized rate through 2029, up from 45 percent previously, driven by both higher volumes and improved pricing.
ASML	ASML Holding is the world's leading provider of semiconductor lithography equipment by market share. Shares rose alongside AI infrastructure businesses, reflecting strong demand for AI compute and the critical role ASML's tools play in enabling leading-edge chip fabrication, including advanced memory and logic production. Strong bookings underscored this demand. The company reported a record €13.2 billion in fourth-quarter 2025 bookings, well ahead of expectations, including €7.4 billion from extreme ultraviolet (EUV) systems tied to AI-driven demand. These results reinforce ASML's position as a key bottleneck in advanced chip production.
SHOP.TO	Shopify is an ecommerce software platform that enables merchants to build, manage, and scale their businesses. Shares declined alongside software stocks amid investor concerns about AI-related disruption. While AI is reshaping the software landscape, we believe Shopify is better positioned than most horizontal vendors. As a vertical application tailored to ecommerce, it is less likely to be displaced by agentic workflows. Instead, generative tools such as ChatGPT may act as incremental demand channels. Shopify has already enabled an integration with ChatGPT and created a universal protocol for AI shopping alongside Google, which applies third-party payment fees to transactions originating there, consistent with its platform model. Strong operating momentum supports this view. Shopify has delivered three consecutive quarters of roughly 30 percent year-over-year gross merchandise volume growth, with 2025 marking its fastest calendar year growth since 2021.
SE	Sea is an internet business in Southeast Asia that operates leading platforms in video games (Garena), ecommerce (Shopee), and digital financial services (Monee). Shares have come under pressure in recent months due to earnings revisions tied to incremental investment in the ecosystem, competition concerns with TikTok, and perceived AI disintermediation risk. We believe Shopee's ongoing investments reflect a proactive effort to strengthen competitive advantages. These initiatives, costing roughly 70 basis points of gross merchandise value, focus on logistics, fulfillment, and loyalty programs. We believe TikTok's threat is overblown and that competitive intensity remains stable, as evidenced by both platforms' continued commission rate hikes throughout 2025.
000660.KS	SK hynix is the world's largest dedicated producer of memory chips. The business benefits from the increasing demand for computational power and data storage, driven by the rise of artificial intelligence (AI) and high-performance computing. The memory chip industry has consolidated into an oligopoly led by three companies. While SK hynix isn't the overall market-share leader, it is the only company with an exclusive focus on memory chips, and we believe it stands to benefit most from the growth of high-bandwidth memory (HBM). HBM is essential for AI servers and graphical processing units (GPUs). SK hynix is the world's leading HBM designer in terms of market share, and our research indicates that the business' chips outperform competitors in terms of yield, data speed, and heat dissipation.
ADYEN.AS	Adyen operates a worldwide payment platform that is a novel piece of commerce infrastructure powering the global internet economy. Adyen shares declined sharply following results, driven more by guidance and communication than underlying fundamentals, in our view. The company reported second-half 2025 results that were modestly below expectations, with growth impacted by temporary headwinds such as foreign exchange, APAC-related pressures, and prior-year comparisons. The primary driver of the sell-off was softer-than-expected 2026 guidance. Management narrowed its revenue outlook to 20 percent to 22 percent growth and guided to broadly flat margins as it steps up hiring, particularly in North America and newer initiatives.

TICKER

COMMENTARY

TSM

TSMC is the world's largest producer of leading-edge logic chips by market share. TSMC's latest results highlighted accelerating AI demand and reinforced the company's position as a primary beneficiary of that trend. The update included two new datapoints that strengthened our outlook for AI accelerator demand. First, TSMC Chairman C.C. Wei said he personally spoke with the company's largest hyperscaler AI customers and concluded that their requests for additional capacity were supported by end demand. Given TSMC's historically conservative posture, we view this as a meaningful signal. Second, the company reinforced that confidence with a materially higher capital expenditure plan of $54 billion for 2026, well above consensus estimates of $47.8 billion, to support expected AI-driven demand. TSMC also reported results and issued guidance that exceeded our expectations and those of consensus. Management now expects AI-related revenue to grow at a 55 percent annualized rate through 2029, up from 45 percent previously, driven by both higher volumes and improved pricing.

ASML

ASML Holding is the world's leading provider of semiconductor lithography equipment by market share. Shares rose alongside AI infrastructure businesses, reflecting strong demand for AI compute and the critical role ASML's tools play in enabling leading-edge chip fabrication, including advanced memory and logic production. Strong bookings underscored this demand. The company reported a record €13.2 billion in fourth-quarter 2025 bookings, well ahead of expectations, including €7.4 billion from extreme ultraviolet (EUV) systems tied to AI-driven demand. These results reinforce ASML's position as a key bottleneck in advanced chip production.

SHOP.TO

Shopify is an ecommerce software platform that enables merchants to build, manage, and scale their businesses. Shares declined alongside software stocks amid investor concerns about AI-related disruption. While AI is reshaping the software landscape, we believe Shopify is better positioned than most horizontal vendors. As a vertical application tailored to ecommerce, it is less likely to be displaced by agentic workflows. Instead, generative tools such as ChatGPT may act as incremental demand channels. Shopify has already enabled an integration with ChatGPT and created a universal protocol for AI shopping alongside Google, which applies third-party payment fees to transactions originating there, consistent with its platform model. Strong operating momentum supports this view. Shopify has delivered three consecutive quarters of roughly 30 percent year-over-year gross merchandise volume growth, with 2025 marking its fastest calendar year growth since 2021.

Sea is an internet business in Southeast Asia that operates leading platforms in video games (Garena), ecommerce (Shopee), and digital financial services (Monee). Shares have come under pressure in recent months due to earnings revisions tied to incremental investment in the ecosystem, competition concerns with TikTok, and perceived AI disintermediation risk. We believe Shopee's ongoing investments reflect a proactive effort to strengthen competitive advantages. These initiatives, costing roughly 70 basis points of gross merchandise value, focus on logistics, fulfillment, and loyalty programs. We believe TikTok's threat is overblown and that competitive intensity remains stable, as evidenced by both platforms' continued commission rate hikes throughout 2025.

000660.KS

SK hynix is the world's largest dedicated producer of memory chips. The business benefits from the increasing demand for computational power and data storage, driven by the rise of artificial intelligence (AI) and high-performance computing. The memory chip industry has consolidated into an oligopoly led by three companies. While SK hynix isn't the overall market-share leader, it is the only company with an exclusive focus on memory chips, and we believe it stands to benefit most from the growth of high-bandwidth memory (HBM). HBM is essential for AI servers and graphical processing units (GPUs). SK hynix is the world's leading HBM designer in terms of market share, and our research indicates that the business' chips outperform competitors in terms of yield, data speed, and heat dissipation.

ADYEN.AS

Adyen operates a worldwide payment platform that is a novel piece of commerce infrastructure powering the global internet economy. Adyen shares declined sharply following results, driven more by guidance and communication than underlying fundamentals, in our view. The company reported second-half 2025 results that were modestly below expectations, with growth impacted by temporary headwinds such as foreign exchange, APAC-related pressures, and prior-year comparisons. The primary driver of the sell-off was softer-than-expected 2026 guidance. Management narrowed its revenue outlook to 20 percent to 22 percent growth and guided to broadly flat margins as it steps up hiring, particularly in North America and newer initiatives.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Semiconductors

E-commerce

Japan

China

E-commerce

Energy Transition

Data Centers

AI

E-commerce

Semiconductors

Biotechnology

Payments

E-commerce

Streaming

Semiconductors

Entertainment

Automation

E-commerce

AI

Streaming

Gaming

Sports Betting

AI

E-commerce

Energy Transition

Semiconductors

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

David E. Levanson Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Sands Capital International Growth Fund