| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.9% | 3.0% | - |
| 2025 |
|---|
| 3.0% |
The Magellan Global Opportunities Fund delivered a solid 3.0% return in the September quarter, though lagging the benchmark as more speculative companies performed strongly in the risk-on environment. The portfolio benefited from strong performance in Alphabet following favorable antitrust ruling outcomes, Taiwan Semiconductor on AI-related demand sentiment, and Reckitt Benckiser on better-than-expected results. Key detractors included American Tower due to telecom infrastructure concerns, SAP on AI disruption fears, and Universal Music Group on weak results. The fund maintains a cautious stance despite opportunities at individual stock levels, as global equity markets trade at record levels with full valuations where risks are not sufficiently discounted. While expecting reasonable US economic activity aided by interest rate cuts, risks from softening labor markets, inflation, and government deficits introduce downward bias. The portfolio focuses on high-quality companies with sustainable competitive advantages, exemplified by the detailed analysis of Adidas as a compelling long-term opportunity despite recent execution challenges.
The fund invests in outstanding companies at attractive prices while exercising deep understanding of the macroeconomic environment to manage investment risk, focusing on companies with sustainable competitive advantages that translate into returns on capital in excess of their cost of capital.
We continue to expect US economic activity to remain reasonable in the near term, aided by interest rate cuts. Nonetheless, with Global equity markets at record levels and valuations full, we view risks as not sufficiently discounted in equity valuations and maintain a cautious stance while noting opportunities at the individual stock level are present and will be acted upon.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Oct 16 2025 | 2025 Q3 | ADS.DE, AMD, AMT, AMZN, AVGO, DEO, DISH, ES, GOOGL, MA, META, MSFT, NESN.SW, NKE, NVDA, ORCL, PUM.DE, RKT.L, SAP, SATS, T, TSM, UMG.AS, UNH, YUM | AI, consumer, global, Quality, semiconductors, technology | - | The fund emphasizes AI as a dominant market driver, noting speculative enthusiasm around chip and data center deals between OpenAI, Nvidia, and Oracle. Magellan remains constructive on long-term AI monetization potential but highlights valuation risks, preferring high-quality growth companies like Microsoft, TSMC, and Nestlé that can compound sustainably. It also features Adidas as a long-term consumer brand opportunity benefiting from global sports and lifestyle demand. |
| Jun 30 2025 | 2025 Q2 | TSM | cross-border revenue, earnings, Global Growth, multinationals, Scale |
TSM DG AMZN GOOG MSFT SAP NESN SW |
The letter emphasizes global opportunity set expansion driven by cross-border revenue growth and multinational platform companies. Management focuses on businesses that benefit from scale, brand strength, and global distribution networks while navigating geopolitical noise. Long-term returns are expected to be driven by global earnings compounding rather than short-term macro timing. |
| Mar 31 2025 | 2025 Q1 | - | - | - | |
| Dec 31 2024 | 2024 Q4 | NFLX | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 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 |
Athleisure |
||
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 Q2 |
Globalization |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 18, 2026 | Fund Letters | Alan Pullen | DG | Dollar General Corporation | Consumer Staples | Consumer Staples Retailing | Bull | New York Stock Exchange | Discountretail, Execution, Margins, turnaround, Value | Login |
| Jan 18, 2026 | Fund Letters | Alan Pullen | AMZN | Amazon.com, Inc. | Consumer Discretionary | Internet Retail | Bull | NASDAQ | CapEx, cloud, ecommerce, Margins, scale | Login |
| Jan 18, 2026 | Fund Letters | Alan Pullen | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Monetisation, Search | Login |
| Jan 18, 2026 | Fund Letters | Alan Pullen | MSFT | Microsoft Corporation | Information Technology | Application Software | Bear | NASDAQ | AI, cloud, enterprise, Platforms, Software | Login |
| Jan 18, 2026 | Fund Letters | Alan Pullen | SAP | SAP SE | Information Technology | Application Software | Bear | Xetra | AI, cloud, enterprise, ERP, Software | Login |
| Jan 18, 2026 | Fund Letters | Alan Pullen | NESN SW | Nestlé S.A. | Consumer Staples | Packaged Foods | Bull | Swiss Exchange | brands, consumer staples, Defensiveness, Pricingpower, scale | Login |
| Jun 30, 2025 | Fund Letters | Alan Pullen | TSM | TSMC | Information Technology | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | AI, Fabrication, Foundry, innovation, Margins, scale, semiconductors | Login |
| TICKER | COMMENTARY |
|---|---|
| AMD | AMD was mentioned as an example of businesses that already make money, have shown they can do so through cycles and are priced so that we do not need everything to go right. |
| AMT | 3Q beat and raise was overshadowed by DISH (not held) claiming it should be excused from future lease payments and pressure to organic billing growth. REITs also faced pressure as long-term interest rates remained stubbornly high. |
| 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. |
| AVGO | The primary contributors to its performance were our exposures to Broadcom |
| DEO | Examples include Tidewater, Valaris, Constellation Brands, Diageo and Trex. We have discussed TDW and VAL previously, as well as STZ and DEO here. |
| 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. |
| NKE | Notable positive contributions from the Fund's short book in December include National Vision Holdings, Nike, and Starbucks. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| RKT.L | Consider Reckitt Benckiser, the UK-listed maker of Lysol, Mucinex, and Durex. The company recently completed the divestiture of its slower-growth Essential Home business, leaving behind a focused hygiene and health portfolio with a clear path to accelerating organic growth and a large pile of cash recently returned to investors. Yet despite this improved business quality, shares still trade at a 20% discount to the market, as improving fundamentals at the core business are clouded by recent portfolio moves. |
| SAP | We trimmed SAP SE. |
| SATS | December saw the GA-Courtenay Special Situations fund (USD I) appreciate by +6.3%, resulting in a return for 2025 of +6.5%. The positive result was primarily driven by price appreciation in Echostar and Filtronic, the fund's largest two positions, and both publically listed proxies for SpaceX. |
| T | Telecoms lagged on concerns that a new CEO at VZ (not held) will increase the competitive intensity within the industry. |
| 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. |
| UMG.AS | UMG is a high-quality, capital-light, rapidly growing royalty on greater music consumption. 'Streaming 2.0' deals, which incorporate wholesale price increases, should lead to higher subscription revenue growth. New partners and product tiers should allow for better customer segmentation. AI can be a further tailwind to growth. |
| UNH | We also added back a full position in UnitedHealth |
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