Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.9% | 3.9% | 8.7% |
| 2025 | 2024 |
|---|---|
| 8.7% | 9.1% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.9% | 3.9% | 8.7% |
| 2025 | 2024 |
|---|---|
| 8.7% | 9.1% |
Bristol Gate Capital Partners focuses on high dividend growth companies with robust free cash flows and disciplined capital allocation, believing these businesses deliver superior risk-adjusted returns through sustainable dividend policies. Since ChatGPT's launch in late 2022, the market has concentrated heavily in AI leaders, creating narrow breadth that has challenged the firm's diversified approach and led to underperformance. However, Bristol Gate continues investing in data science and machine learning while maintaining focus on proven dividend growers rather than over-concentrating in nascent AI themes. The firm's portfolio companies grew dividends by 14.3% versus 5.6% for the S&P 500, with all 22 holdings beating Q3 earnings consensus. Key contributors included Eli Lilly benefiting from GLP-1 franchise strength, Applied Materials riding AI-driven semiconductor demand, and Thermo Fisher Scientific gaining from pharma client confidence. Looking forward, Bristol Gate expects market breadth to improve driven by moderating inflation, potential Fed accommodation, fiscal stimulus from the OBBBA Act, and AI productivity benefits spreading across sectors. The firm views current conditions as an ideal entry point for their dividend growth strategy.
Bristol Gate believes companies with robust free cash flows, disciplined capital allocation, and a track record of high dividend growth are uniquely positioned to deliver superior risk-adjusted returns through resilient operating performance and sustainable dividend policies.
Bristol Gate believes their strategy presents a positive entry point, particularly for clients focused on preserving wealth or wanting to lower high growth exposures. Market breadth tailwinds and conviction in improvements being made by their Data Science team give them confidence that it's an ideal time to buy the strategy and represents a way for investors to reduce risk relative to exposure to the current concentrated market.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 20 2026 | 2025 Q4 | ACN, AMAT, AVGO, CARR, CTAS, GE, IBKR, LLY, MSFT, ODFL, TMO, UNH, ZTS | AI, dividends, healthcare, Quality, semiconductors, technology, value |
LLY AMAT TMO ZTS IBKR |
Bristol Gate focuses on companies with robust free cash flows and disciplined capital allocation that deliver superior risk-adjusted returns through sustainable dividend policies. Portfolio companies grew dividends by 14.3% over the last twelve months compared to 5.6% for the S&P 500. The firm believes dividend growth rates are powerful predictors of total return and fastest dividend growers often outperform the broader dividend universe. Since ChatGPT's launch in late 2022, the market has experienced a seismic shift with investor capital concentrating heavily in AI leaders, creating narrow market breadth. Bristol Gate devotes significant resources to data science and machine learning in their investment approach, believing in AI's transformative power. However, their focus remains on identifying high dividend growth companies rather than over-concentrating in AI themes. Eli Lilly continues to benefit from the strength of its incretin portfolio, commanding 58% of the US incretin market and exiting Q3 with 71% of new prescriptions. The company raised annual guidance for the third time in 2025, with strength expected to continue into 2026 when its oral GLP-1 drug orforglipron hits the market in Spring. The oral alternative is expected to significantly expand the market globally due to ease of use, simpler supply chain, and lower cost. Applied Materials rose despite mixed results due to AI-driven demand optimism, specifically around advanced logic and high bandwidth memory chips. Management issued cautiously optimistic Q1 2026 outlook and forecast significant uplift in second half of calendar 2026 as spending shifts back toward AMAT's strengths. Analog semiconductor companies have been reporting improving results, signaling a shift in real-world manufacturing and consumer spending. |
| Oct 24 2025 | 2025 Q3 | ACN, APH, AVGO, CARR, INTU, MMC, TMO | AI, cash flow, dividends, earnings, Quality |
AVGO TMO GE CARR AVGO TMO GE CARR ACN INTU APH MMC UNH |
Bristol Gate lagged the S&P 500 as defensive dividend growers trailed AI-linked momentum stocks. Managers highlight Broadcom, GE Aerospace, and Thermo Fisher as key contributors, while Accenture and Intuit detracted. The team remains confident that dividend growth and cash flow quality will outperform over the long term as fundamentals reassert themselves. |
| Jul 21 2025 | 2025 Q2 | ACN, ATD CN, AVGO, CIGI, EFN CN, ENGH CN, GE, JWEL CN, MCHP, MCK, MMC, TMO, TVK CN, UNH, WCN CN, ZTS | dividends, free cash flow, income growth, Quality, Resilience |
AVGO MCK ACN |
The letter focuses on quality U.S. equities with rising dividends and strong free cash flow generation. Management positions dividend growth as a stabilizing factor amid policy uncertainty and market concentration. AI-led growth is acknowledged but balanced with income discipline. |
| Apr 16 2025 | 2025 Q1 | AVGO, DPZ, JWEL, LLY, TFII CN, WAB | - | - | |
| Jan 21 2025 | 2024 Q4 | AMAT, AVGO, BN CN, MCHP, MCK, SJ CN, TFII CN, UNH, ZTS | - | - | |
| Oct 18 2024 | 2024 Q3 | MCK, SHW | - | - | |
| Jul 16 2024 | 2024 Q2 | AMAT, AVGO, CNR, DOL CN, IIP-U CN, ODFL, OTEX, SHW | - | - | |
| Apr 18 2024 | 2024 Q1 | AMAT, AMT, AVGO, CTVA, MCK, MMC, UNH, ZTS | - | - | |
| Jan 19 2024 | 2023 Q4 | - | - | - |
| 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 |
DividendsJapanese companies paid record dividends of ¥18 trillion for fiscal year ending March 2025, a 13.8% year-over-year increase. Many major firms have adopted progressive dividend policies guaranteeing dividends will never be cut, only maintained or increased. |
Progressive Dividend Record Payouts Shareholder Returns Yield Growth | |
GLP1Eli Lilly represents the fund's exposure to the GLP-1 obesity and diabetes treatment market, which continues to show exceptional growth. Mounjaro and Zepbound sales more than doubled year-over-year, with demand continuing to outpace supply. The fund sees this as a multi-decade growth opportunity with expanding indications and sustained competitive advantages. |
Obesity Diabetes Pharmaceuticals Growth Innovation | |
Semiconductor CycleThe portfolio's underweight to South Korean semiconductor companies, including Samsung Electronics and SK Hynix, was a key driver of relative underperformance. These stocks continued to benefit from strong AI-related memory demand and elevated investor enthusiasm. Memory chips are largely a commoditized product with weak pricing power, extreme capital intensity and pronounced boom-bust cycles that lead to volatile earnings. |
Memory South Korea Cyclical Commoditized Volatility | |
| 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 |
DividendsJapanese companies paid record dividends of ¥18 trillion for fiscal year ending March 2025, a 13.8% year-over-year increase. Many major firms have adopted progressive dividend policies guaranteeing dividends will never be cut, only maintained or increased. |
Progressive Dividend Record Payouts Shareholder Returns Yield Growth | |
| 2025 Q2 |
DividendsJapanese companies paid record dividends of ¥18 trillion for fiscal year ending March 2025, a 13.8% year-over-year increase. Many major firms have adopted progressive dividend policies guaranteeing dividends will never be cut, only maintained or increased. |
Progressive Dividend Record Payouts Shareholder Returns Yield Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | CARR | Carrier Global Corporation | Industrials | Building Products | Bear | NYSE | Building, Cyclicality, Demand, Housing, HVAC, Interest rates, Margins, recovery | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | ACN | Accenture plc | Information Technology | IT Services | Bull | NYSE | AI, Consulting, Digital, dividends, enterprise, FCF, growth, technology, transformation | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | INTU | Intuit Inc. | Information Technology | Application Software | Bull | NASDAQ | Accounting, growth, guidance, Margins, SaaS, Software, TAX, valuation | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | APH | Amphenol Corporation | Information Technology | Electronic Components | Bull | NYSE | Connectivity, data centers, Dividend Growth, innovation, Margins, Sensors, technology | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | MMC | Marsh & McLennan Companies Inc. | Financials | Insurance Brokers | Bear | NYSE | Brokerage, Consulting, Cycle, dividends, exit, Insurance, Pricing | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | UNH | UnitedHealth Group | Health Care | Managed Health Care | Bull | NASDAQ | dividends, efficiency, growth, healthcare, Insurance, Optum, scale, value-based care | Login |
| Jul 21, 2025 | Fund Letters | Achilleas Taxildaris | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI, datacenters, hyperscalers, Margins, Networking, semiconductors, Software | Login |
| Jul 21, 2025 | Fund Letters | Achilleas Taxildaris | MCK | McKesson Corporation | Health Care | Health Care Distributors | Bull | New York Stock Exchange | Acquisitions, cashflow, Distribution, efficiency, Glp1, healthcare | Login |
| Jul 21, 2025 | Fund Letters | Achilleas Taxildaris | ACN | Accenture plc | Information Technology | IT Consulting & Services | Bull | New York Stock Exchange | — | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI, backlog, data centers, growth, hyperscalers, Margins, Networking, semiconductors | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | LLY | Eli Lilly and Company | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | Diabetes, Glp1, Incretins, Obesity, pipeline | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | TMO | Thermo Fisher Scientific | Health Care | Life Sciences Tools & Services | Bull | NYSE | diagnostics, FCF, innovation, life sciences, Margins, Pricing, recurring revenue | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | AMAT | Applied Materials, Inc. | Information Technology | Semiconductor Equipment | Bull | NASDAQ | AI, CapEx, Equipment, HBM, semiconductors | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | GE | GE Aerospace | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, backlog, cashflow, Defense, Engines, growth, services | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | TMO | Thermo Fisher Scientific Inc. | Health Care | Life Sciences Tools & Services | Bull | New York Stock Exchange | CapEx, CDMO, lifesciences, pharma, recovery | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | CARR | Carrier Global Corporation | Industrials | Building Products | Bear | NYSE | Building, Cyclicality, Demand, Housing, HVAC, Interest rates, Margins, recovery | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | ZTS | Zoetis, Inc. | Health Care | Pharmaceuticals | Bear | New York Stock Exchange | Animalhealth, Competition, dividends, exit, Margins | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI, backlog, data centers, growth, hyperscalers, Margins, Networking, semiconductors | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | IBKR | Interactive Brokers Group, Inc. | Financials | Investment Banking & Brokerage Services | Bull | NASDAQ | Automation, Brokerage, dividends, Margins, scale | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | TMO | Thermo Fisher Scientific | Health Care | Life Sciences Tools & Services | Bull | NYSE | diagnostics, FCF, innovation, life sciences, Margins, Pricing, recurring revenue | Login |
| Oct 24, 2025 | Fund Letters | Achilleas Taxildaris | GE | GE Aerospace | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, backlog, cashflow, Defense, Engines, growth, services | 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. |
| AMAT | Top gainers in the Fund this quarter included Applied Materials (+26%). During the quarter, we trimmed the Fund's holding in Applied Materials as it rallied |
| AVGO | The primary contributors to its performance were our exposures to Broadcom |
| CARR | Carrier Global fell after lowering their 2025 guidance during the Q3 results. Residential sales volumes continue to be weak in the Americas region as higher interest rates and distributor destocking weighed on the segment. In early December the board of directors announced a 6.7% increase which was below our expectations. We added to Carrier Global as part of our rebalancing process. |
| CTAS | During the quarter, we initiated new positions in two companies – Cintas Corp (CTAS) and Marvell Technology Inc. (MRVL). Cintas is the nation's largest uniform rental and facility services provider serving around 1 million customers. We are attracted to the company's strong execution, potential for continued growth in the future, return profile, and current valuation leading us to initiate a new position in the stock. |
| GE | For insight into the real economy operating beneath this AI and data center boom, we must look elsewhere within the S&P 500, including bellwethers like General Electric |
| IBKR | Interactive Brokers saw weakness amid interest-rate uncertainty. |
| LLY | Eli Lilly shares were a top performer in 4Q25 after delivering strong Q3 2025 earnings in October. Revenue rose 54% year-over-year to $17.6 billion, and adjusted EPS of $7.02 beat consensus of $6.02. Growth was driven by its GLP-1 franchises, Mounjaro and Zepbound, where sales more than doubled year-over-year, alongside strength in other therapeutic areas. Management raised full-year guidance for both revenue and earnings, reinforcing investor confidence in the company's growth outlook. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| ODFL | Rotated exposure from Old Dominion Freight Line, a leading less-than-truckload (LTL) carrier. |
| TMO | Thermo Fisher Scientific was a strong contributor with 8.69% ending weight and 1.47% contribution. |
| UNH | We also added back a full position in UnitedHealth |
| ZTS | ZTS: $6B authorized August 2024; $1.5B used as of September 2025 |
| 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 | |||