| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.83% | 8.8% | - |
The Fairtree Global Equity Fund returned 8.8% in Q2 2026, underperforming its benchmark by 6.1% as global markets staged a powerful but highly concentrated recovery. The quarter was defined by two themes: unwinding of the US-Iran geopolitical risk premium following an April ceasefire, which drove Brent crude down 38.4%, and an exceptional AI and semiconductor rally that pushed the sector from 5% to 20% of the S&P 500. South Korea and Taiwan surged 64.1% and 48.9% respectively on semiconductor strength. The momentum factor posted record outperformance, fueled by leveraged ETFs exceeding $200bn and same-day options trading surpassing 50%, creating a narrow market where only 30% of stocks outperformed benchmarks. The fund's structural tilt toward value, growth, and quality rather than momentum drove relative underperformance. Portfolio activity focused on adding technology and AI exposure through TSMC, Meta, and semiconductor equipment maker Shibaura Mechatronics, while broadening into US financials. The manager maintains conviction that narrow leadership periods historically precede broader market participation as fundamentals reassert themselves, with current valuations presenting compelling opportunities.
The fund maintains a valuation-disciplined, style-agnostic approach with structural overweights to value, growth, and quality factors, while accepting underperformance during periods of extreme momentum concentration in the belief that fundamentals will eventually reassert themselves and drive broader market participation.
The manager believes current conditions continue to present a compelling opportunity set, with valuations across several holdings remaining attractive relative to underlying business fundamentals. The approach remains valuation disciplined, style-agnostic and highly active, with continued adjustment of positioning as opportunities evolve, focusing on situations where the risk-reward profile has improved meaningfully. The manager expects periods of narrow leadership to be followed by broadening of returns as fundamentals reassert themselves.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 5 2026 | 2026 Q2 | 6590.T, 6762.T, 6902.T, 9202.T, 9433.T, ACN, BHP, CFR SW, EDEN.PA, GFI, GOOGL, HOOD, MC.PA, MELI, META, QCOM, SCHW, SOL.JO, TSM | AI, emerging markets, Geopolitical, momentum, semiconductors, technology, value | - | Fairtree Global Equity underperformed by 6.1% in Q2 2026 as extreme momentum concentration in AI and semiconductors drove benchmarks higher. The fund's value-oriented positioning clashed with record momentum factor outperformance fueled by leveraged ETFs and options flows. Management added semiconductor and AI exposure while maintaining conviction that narrow leadership will give way to fundamental-driven broadening, viewing current valuations as compelling despite near-term style headwinds. |
| May 6 2026 | 2026 Q1 | 000660 KS, 005930 KS, 0700.HK, IMP.JO, KSPI.L, NPN.JO, PRX.AS, SOL.JO, TCOM, TSM | active management, emerging markets, energy, Geopolitical, technology, valuation | - | Fairtree Global Equity Fund fell 8.35% in Q1 2026 amid tech rotation and geopolitical shock from US-Iran war. Manager used weakness to add to high-conviction holdings at attractive valuations, initiating new positions in Prosus and oil-linked Sasol. Current market dislocation creates compelling opportunity set with valuations derating faster than fundamentals suggest. |
| Feb 10 2026 | 2025 Q4 | 6723.T, AAPL, ADP, AMAT, AMZN, BABA, ELV, EVO.ST, FI, GOOGL, HAR.JO, IMP.JO, MC.PA, META, MSFT, NPN.JO, NVDA, PDD, PM, TSM | AI, emerging markets, global, rates, semiconductors, technology | - | Fairtree Global Equity Fund underperformed in Q4 2025 despite strong technology positioning, with Alphabet and TSMC contributing while Fiserv and Evolution detracted. The manager rotated from Chinese names into Naspers and added to mega-cap tech positions. The fund maintains technology overweight and emerging market bias, outperforming for the full year despite challenging market concentration dynamics. |
| Nov 3 2025 | 2025 Q3 | 005930.KS, AAPL, AMZN, BABA, BRK-B, CNC, CROX, DHI, EVO.ST, FI, GOOGL, JD, KO, ORCL, V, WKL, ZTS | AI, China, Dollar, emerging markets, global, policy, semiconductors, technology |
GOOG BABA AAPL CNC CROX FISV |
Strong Q3 performance driven by emerging market outperformance, particularly China's 20.7% gain on technology policy support. Fund's overweight China and EM technology positioning proved beneficial while underweight US exposure was a headwind. Portfolio actions focused on quality additions and profit-taking in strong performers, maintaining strategic positioning for continued EM and technology themes. |
| Aug 11 2025 | 2025 Q2 | 000660.KS, 005930.KS, AMAT, AVGO, BP, FI, GFI, GLEN.L, GOOGL, JD, KASPI.L, LOW, MSFT, NVDA, PDD, PGR, ROST, SYY, UNH, VRT | AI, emerging markets, Europe, Global Equity, semiconductors, tariffs, technology, Trade Policy | - | Fairtree Global Equity returned 10.9% amid tariff volatility and EM strength. Technology overweight helped performance while Chinese e-commerce holdings detracted. Fund rotated EM tech exposure, added US tech positions, and initiated new holdings across sectors. Maintains underweight cyclical/defensive positioning with geographic overweight to China tech and Kazakhstan financials despite trade uncertainties. |
| May 21 2025 | 2025 Q1 | ABT, AMZN, AVGO, BABA, BID.JO, BP, EVO.ST, GFI, GOOGL, JD, JPM, KO, KSPI.L, MSFT, NVDA, ORCL, PDD, SHEL, TTE | AI, China, E-Commerce, energy, Global Equity, Recession, tariffs, technology | - | Fairtree Global Equity outperformed by 281bps in Q1 2025 despite tariff-driven market volatility. Chinese e-commerce holdings drove strong returns while AI competition intensified. Manager maintains defensive positioning with cyclical underweights due to US recession risks, higher cash levels, and selective China/Kazakhstan overweights. Energy positions sold as risk-reward deteriorated. |
| Feb 5 2025 | 2024 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI-related capital expenditure drove an exceptionally powerful but highly concentrated rally in semiconductors and infrastructure plays during the quarter. The AI capex boom benefited picks-and-shovels plays including semiconductor equipment makers, power, and infrastructure, while hyperscalers and software companies served as funders. The fund added exposure through positions in TSMC, Shibaura Mechatronics, and maintained holdings in related names. |
Semiconductors Infrastructure Capex Equipment |
SemiconductorsSemiconductors grew from around 5% of the S&P 500 a couple of years ago to around 20%, driven by AI demand and momentum flows. South Korea and Taiwan surged 64.1% and 48.9% respectively on exceptional rallies in semiconductor and memory stocks including Samsung, SK Hynix, and TSMC. The rally paused in June following profit-taking after a sharp single-day sell-off. |
Memory Taiwan South Korea Equipment | |
MomentumThe momentum factor posted record outperformance versus the market and other factors, fueled by growth in leveraged ETFs crossing $200bn and same-day expiry option trading exceeding 50%. This created a narrow market where only around 30% of stocks outperformed benchmarks over the past three-and-a-half years. The fund's traditionally marginal exposure to momentum was not conducive to performance in this environment. |
ETFs Concentration Factor | |
ValueThe fund maintains structural positioning overweight in value, growth, and quality on an absolute and relative basis. However, the extreme concentration in momentum-driven mega-cap names and the fund's value tilt was the primary driver of underperformance relative to benchmark. The manager believes periods of narrow leadership are historically followed by broadening of returns as fundamentals reassert themselves. |
Factor Fundamentals Valuation | |
GeopoliticalThe quarter was defined by a sharp rebound from the March US-Iran shock as geopolitical risk premium unwound following a ceasefire announcement on April 7. Brent crude fell 38.4% as the conflict de-escalated and supply returned to the market. The Middle East conflict added to inflationary pressures in Europe, contributing to the ECB's first rate hike since 2023. |
Iran Oil Risk Premium | |
Emerging MarketsEmerging markets delivered the strongest regional returns with the MSCI EM Index rising 24.05%, more than reversing the March decline. Performance diverged sharply by country, with South Korea and Taiwan leading on semiconductor strength, while Indonesia fell 27% on currency weakness and fiscal concerns, Brazil declined 8.2% on inflation pressures, and China fell 6.6% on technology sell-off and weak property market. |
Asia Divergence Semiconductors | |
| 2026 Q1 |
AITechnology and AI-linked equities experienced broad-based rotation driven by valuation concerns and competitive uncertainty. Advances in AI increased uncertainty around long-term growth expectations, competitive dynamics and valuation assumptions, leading to rapid and correlated de-risking across technology-related holdings. |
Technology Valuation Competition Growth |
OilThe US-Iran war resulted in closure of the Strait of Hormuz, lifting oil prices materially and adding to concerns around inflation, growth and financial conditions. The fund initiated a new position in Sasol to capture the improving outlook for oil-linked producers following the sharp rise in energy prices. |
Energy Geopolitical Inflation Producers | |
SemiconductorsSemiconductor strength drove emerging market performance in January and February, with South Korea and Thailand benefiting from semiconductor strength. Notable contributors included TSMC, Samsung, and SK Hynix, though the fund maintains structural underweight to TSMC due to position limits. |
Technology Asia Performance Concentration | |
ChinaChina was the largest detractor to relative performance, driven primarily by stock selection. Weakness in Prosus and negative sentiment toward Tencent, alongside broader derating across Chinese technology stocks, weighed on performance. The fund remains underweight China. |
Technology Underweight Sentiment Derating | |
South KoreaSouth Korea was a source of relative weakness despite the MSCI Korea Index rising 26.5% over the quarter. The market came under pressure in March from the war-driven rise in energy prices, given Korea's sensitivity as a large oil-importing economy. |
Energy Sensitivity Volatility Import | |
| 2025 Q4 |
ValuationsUS share markets are trading nearly as expensively as they ever have relative to history. High market valuations are very good at predicting poor long-run investment returns. The manager presents detailed analysis showing negative correlation between P/E ratios and subsequent 10-year returns, with current forward P/E of 25.6 suggesting future returns could be negative. |
P/E Ratios Market Multiples Forward Earnings Historical Analysis |
AIContinued investor excitement around the future potential of Artificial Intelligence dominated the news cycle and contributed to market gains. US company earnings are forecast to grow by 44% over the next three years, driven in large part by investors' expectations for AI companies to start delivering on their lofty targets. |
Artificial Intelligence Earnings Growth Technology Investment Expectations | |
Trade PolicyEarly studies show that roughly 90% of the costs of tariffs are being borne by US consumers and companies, contrary to Trump administration narrative. Tariffs alone added 0.7% to US inflation in 2025 and made the typical US household $600 poorer. This presents a longer-term headwind to the US economy as domestic industries become less competitive over time. |
Tariffs Inflation Consumer Costs Economic Policy | |
EarningsOver calendar year 2025, the US share market delivered earnings per share growth of 12.8%, more than twice the earnings growth seen in 2024 and well above long-run average growth figures. This earnings growth has been largely broad based with many different business sectors doing well, not just an AI story. |
EPS Growth Corporate Performance Broad Based Fundamentals | |
| 2025 Q3 |
ChinaChina rose 20.7% for the quarter, extending its rally on continued policy support particularly targeted at technology and property sectors. The government's ongoing push to expand domestic chip production by 2026 and maintain the US-China trade truce further bolstered investor confidence and lifted export-driven and tech-related equities. |
Policy Support Technology Semiconductors Trade Export |
AIContinued strength in mega cap technology and AI related stocks, particularly in the semiconductor sector, supported US equity performance. China also saw optimism surrounding AI-linked industries as part of the government's technology sector support. |
Technology Semiconductors Mega Cap Growth | |
Emerging marketsEmerging markets extended their strong rally in the third quarter, advancing 10.6%. The outperformance was driven by a weaker US dollar and renewed optimism around country-specific catalysts, including political shifts, greater focus on shareholder returns, and signs of monetary policy turning points across several key economies. |
Dollar Policy Catalysts Outperformance | |
| 2025 Q2 |
AIThe fund maintains significant exposure to AI-related semiconductor demand, particularly through Taiwan positions. AI-driven semiconductor demand continues to drive strong performance in technology holdings, with companies like Nvidia and Broadcom contributing meaningfully to returns. |
Semiconductors Technology Taiwan Nvidia Broadcom |
Trade PolicyTrump's Liberation Day tariff announcements created significant market volatility before being suspended for 90 days. The US economy contracted due to surge in imports ahead of anticipated tariffs. Trade tensions between US and China showed signs of easing, benefiting Taiwan and other Asian markets. |
Tariffs Trump China Volatility Policy | |
Emerging marketsStrong performance from South Korea and Taiwan drove EM gains of 12%. South Korea surged 32.8% on post-election optimism and Value Up reforms. The fund maintains overweight EM technology exposure through Chinese technology shares and Kazakhstan financial shares. |
South Korea Taiwan China Technology Reforms | |
| 2025 Q1 |
AIAI-related US companies experienced pronounced volatility following the release of Deepseek, a Chinese Large Language model trained at significantly lower cost but producing similar results to current US models. Chinese companies' advancements in AI have reinforced their position as a significant force in the technology sector. |
Artificial Intelligence Large Language Models Technology Competition |
E-commerceChinese e-commerce holdings delivered strong performance with Alibaba contributing +143bps, Pinduoduo +76bps, and JD.com +58bps to fund returns. The strong rally in Chinese e-commerce was used to reduce EM technology exposure and redeploy into DM technology names. |
Chinese E-commerce Technology Emerging Markets | |
Trade PolicyUS tariffs continued to weigh on investor sentiment with global markets seeing a sharp downturn in March. March was marked by rapid policy shifts from President Trump, with tariffs driving market concerns and policy uncertainty out of Washington pressuring US equities. |
Tariffs Policy Uncertainty Trade Tensions |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cashflow, cloud, growth, innovation, Margins, Regulation, Search, YouTube | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | BABA | Alibaba Group Holding Limited | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NYSE | AI, buybacks, China, cloud, e-commerce, growth, profitability, recovery, retail, valuation | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | Brand, buybacks, cashflow, consumer, Ecosystem, growth, Hardware, Margins, services | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | CNC | Centene Corporation | Health Care | Managed Health Care | Bear | NYSE | guidance, healthcare, Insurance, Margins, Medicaid, Regulation, Risk, Utilization | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | CROX | Crocs Inc. | Consumer Discretionary | Footwear | Bear | NASDAQ | consumer, Cyclicality, Demand, Footwear, Inventory, Margins, retail, valuation | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | FISV | Fiserv Inc. | Other | Data Processing & Outsourced Services | Bear | NASDAQ | diversification, Fintech, growth, guidance, Integration, Merchant, Payments, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| META | On the buy-side, the largest move was a substantial top-up to Booking Holdings, alongside additions to Meta |
| TSM | On the buy-side, the largest move was a substantial top-up to Booking Holdings, alongside additions to Meta and to TSMC. Notable contributors to fund performance over the quarter were positions in TSMC (+109bps absolute and +55bps relative) |
| 6590.T | new positions in Shibaura Mechatronics, a Japanese semiconductor equipment maker geared to the AI capital expenditure cycle |
| SCHW | new positions in Shibaura Mechatronics, a Japanese semiconductor equipment maker geared to the AI capital expenditure cycle, Charles Schwab and Robinhood in US financials |
| HOOD | new positions in Shibaura Mechatronics, a Japanese semiconductor equipment maker geared to the AI capital expenditure cycle, Charles Schwab and Robinhood in US financials |
| MC.PA | new positions in Shibaura Mechatronics, a Japanese semiconductor equipment maker geared to the AI capital expenditure cycle, Charles Schwab and Robinhood in US financials, LVMH in luxury |
| SOL.JO | new positions in Shibaura Mechatronics, a Japanese semiconductor equipment maker geared to the AI capital expenditure cycle, Charles Schwab and Robinhood in US financials, LVMH in luxury, and Sasol and Gold Fields in South African resources |
| GFI | new positions in Shibaura Mechatronics, a Japanese semiconductor equipment maker geared to the AI capital expenditure cycle, Charles Schwab and Robinhood in US financials, LVMH in luxury, and Sasol and Gold Fields in South African resources |
| QCOM | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| 6762.T | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| CFR.SW | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| EDEN.PA | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| BHP | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| MELI | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| 9433.T | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| 6902.T | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| ACN | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| 9202.T | On the sell-side, the fund sold out of Qualcomm, TDK Corp, Richemont, Edenred, BHP, MercadoLibre, KDDI, Denso, Accenture and ANA Holdings, exiting positions where the risk-reward or portfolio fit had become less compelling |
| GOOGL | Notable contributors to fund performance over the quarter were positions in TSMC (+109bps absolute and +55bps relative), Alphabet (+81bps absolute and -3bps relative) |
| 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 | |||
