| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.0% | 0.1% | 3.0% |
| 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| 3.0% | 29.6% | 22.1% | -15.7% | 19.3% |
Magellan Global Fund maintains a constructive outlook for equity markets, positioning the portfolio to benefit from a three-pronged US economic tailwind of fiscal policy, monetary policy, and deregulation. The fund expects strong 13-14% earnings growth in 2026, well above historical averages, driven by the AI investment boom and significant fiscal stimulus including tax cuts potentially worth $800 per US taxpayer. The portfolio is positioned at maximum permitted risk levels, 20% below market risk, with exposure to highest-quality AI value chain players, financial stocks benefiting from market strength, and consumer franchises. Key contributors included Alphabet, Amazon, and TSMC, benefiting from AI momentum and cloud growth. However, the managers acknowledge risks including potential AI investment slowdown due to resource constraints, systemic economic dependence on AI growth, and geopolitical uncertainties. The fund maintains strategic defensive allocations to high-quality companies as a hedge against market drawdowns while pursuing the dual objectives of attractive risk-adjusted returns and capital preservation.
Investing in outstanding companies at attractive prices while exercising deep understanding of macroeconomic environment to manage investment risk, focusing on high-quality securities with strong risk-adjusted returns over medium to long term.
Constructive outlook for equity markets with economic growth remaining resilient driving strong corporate earnings growth led by the US. Portfolio positioned to benefit from AI investment boom, fiscal stimulus, and monetary easing while maintaining defensive allocations to high-quality companies.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | AMZN, ASML, CMG, GOOGL, MA, META, MSFT, NESN.SW, NFLX, NVO, PG, RMS.PA, SAP, TSM, UNH, V, YUM | AI, Cloud, global, growth, Luxury, Quality, semiconductors, technology |
TSM GOOG MSFT |
AI investment boom driving strong earnings growth expectations of 13-14% in 2026. Portfolio exposed to highest-quality players in AI value chain including cloud providers benefiting… |
| Oct 16 2025 | 2025 Q3 | CME, CMG, GOOG, TSM | Artificial Intelligence, Defensive Growth, Derivatives, Digital infrastructure, Quality Investing | CME | The Global Fund continues to emphasize quality growth stocks with exposure to secular AI and digital trends, while balancing risk with defensives like Nestlé and… |
| Jun 30 2025 | 2025 Q2 | - | Decoupling, fundamentals, geopolitics, Global Equities, regulation | - | The letter focuses on geopolitical forces shaping global equity markets, particularly US versus Europe dynamics and China decoupling. Management argues that long-term fundamentals continue to… |
| Dec 31 2024 | 2024 Q4 | - | - | - | - |
| Dec 31 2023 | 2023 Q4 | AMZN, DGE LN, NFLX, USB | - | - | - |
| Dec 31 2022 | 2022 Q4 | ASML, MA, V | - | - | - |
| Dec 31 2021 | 2021 Q4 | BABA, MSFT, NFLX | - | - | - |
| Dec 31 2020 | 2020 Q4 | MA, MC FP, MSFT | - | - | - |
| 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 |
CloudAmazon's positioning to benefit from both infrastructure and application layers of AI is highlighted. The company's logistical prowess represents one of the foremost moats in business and will be enhanced with AI through better orchestration of logistics assets and buildout of more sophisticated robotics. |
Infrastructure Logistics Automation Efficiency Coordination | |
LuxuryNew investment in Swatch represents exposure to luxury watch brands including Omega, Longines, Tissot, and others. The investment thesis is based on tangible assets including Swiss real estate and the potential for operating leverage when luxury demand recovers from current structural pressures. |
Watches Swiss Brands Premium Recovery | |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
| 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 |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
| 2025 Q2 |
GeopoliticsTrump Administration is remaking world order with radically reset trade relations, strained alliances replaced by unilateralism, and commercial interests prioritized over strategic interests. This creates heightened uncertainty where unpredictability is seen as virtue. |
Trade Policy Unilateralism Uncertainty Alliances Diplomacy |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 16, 2025 | Fund Letters | Arvid Streimann | CME | CME Group Inc. | Financials | Financial Exchanges & Data | Bull | NASDAQ | compounding, Derivatives, Exchanges, growth, Liquidity, Margins, Monopoly, Volatility | Login |
| Jan 18, 2026 | Fund Letters | Arvid Streimann | TSM | Taiwan Semiconductor Manufacturing Company Limited | Information Technology | Semiconductors | Bull | New York Stock Exchange | AI, Foundry, scale, semiconductors, technology | Login |
| Jan 18, 2026 | Fund Letters | Arvid Streimann | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Monetisation, Search | Login |
| Jan 18, 2026 | Fund Letters | Arvid Streimann | MSFT | Microsoft Corporation | Information Technology | Application Software | Bear | NASDAQ | AI, cloud, enterprise, Platforms, Software | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| ASML | ASML, TSMC, and Arista Networks are key players in the AI build out supply chain. |
| CMG | The top-five detractors from returns were Fiserv, Chipotle, Constellation Software, Roper, and Floor & Décor. In the quarter, we exited Fiserv, Chipotle, and monday.com. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| MA | The enduring appeal of card payments is their universality. Consumers trust that Visa and Mastercard will be accepted globally. After more than 20 years of litigation, Visa and Mastercard agreed to yet another settlement that gives merchants greater flexibility |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| 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. |
| NESN.SW | We see now as an opportune time to own a company that possesses world-leading brands in consumer categories we believe have a favourable growth outlook in the long run. Nestlé's comprehensive pricing architecture through umbrella brands Nescafé and Nespresso means the portfolio should be well-positioned to capture spending shifts up and down the price ladder. In pet foods, Nestlé also possesses category leaders in its Purina line. We see both coffee and pet care as attractive categories that are more experiential and less commoditised relative to other staples. Over recent quarters, Nestlé was able to deliver positive volume growth in coffee despite pushing through high-single-digit percentage price increases. Scale matters as Nestlé is the world's largest provider of packaged coffee and among the top pet food producers globally. |
| NFLX | NFLX was the portfolio's largest detractor in 4Q25 following investor concerns around near-term subscriber growth and rising content spending. While revenue grew approximately 10% year-over-year, management guided to slower net subscriber additions in North America and Europe after recent price increases, and margins were pressured by elevated investment in live sports and international content. |
| NVO | added a new holding in Novo Nordisk, which had seen its share price decline by two thirds since mid-2024 |
| PG | The multiples of technology stocks should be quite a bit lower than the multiples of stocks like Coke and Gillette |
| RMS.PA | Hermès was founded in Paris in 1837 as a maker of harnesses and saddles for Europe's horse-drawn elite. From the outset, the company was defined by functional excellence and craftsmanship rather than fashion. Today, the group is one of the most profitable companies in global luxury, with activities spanning leather goods, ready-to-wear, silk, jewellery, watches and homewares. Despite operating more than 300 stores globally and employing over 20,000 people, Hermès continues to behave less like a conglomerate and more like a craft maison, prioritising long-term brand equity over near-term growth. This mindset underpins why we find Hermès such a compelling business. Its brand equity is built not on seasonal fashion or loud marketing but on function, heritage and longevity. Hermès has delivered exceptional consistency in returns on capital and earnings through cycles, underpinned by disciplined supply, minimal discounting and limited fashion risk. This reduces downside volatility and supports higher through-cycle multiples. The benefits of the Hermès model have been particularly evident through the recent challenging period for the luxury sector. Slowing global demand, softer Chinese consumption and inventory pressure have led to revenue declines and margin contraction for many peers. Hermès has stood apart. Growth has moderated but remained positive, margins have proven resilient, and inventory discipline has been maintained. |
| SAP | We trimmed SAP SE. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| UNH | We also added back a full position in UnitedHealth |
| V | There were companies there such as Visa, which we own, as well as many we do not, and which would not likely be appropriate for this mandate. |
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