Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
YCG believes the current market is rewarding speculation over quality, with AI stocks, unprofitable companies, and momentum strategies significantly outperforming. This has led to historic underperformance of high-quality stocks, which the firm views as an opportunity. YCG has trimmed mega-cap tech holdings and outperformers to buy more of their underperforming quality holdings like Copart and Verisk, while initiating new positions in TransDigm and Linde. TransDigm operates a portfolio of aerospace parts with near-monopoly characteristics and pricing power, benefiting from secular air travel growth. Linde dominates industrial gases with economies of scale and take-or-pay contracts creating local monopolies. Meta was repurchased after a drawdown, with the firm believing in the resilience of large networks and their ability to adapt through AI investments. The strategy of buying cyclically underperforming quality businesses has historically paid off, and YCG expects this pattern to continue as market conditions normalize.
YCG focuses on dominant, recession-resistant toll takers that represent some of the highest quality stocks in the market, believing that current speculative market conditions create opportunities to buy undervalued quality businesses while trimming outperformers.
YCG believes their focus on high-quality toll takers and opportunistic rebalancing is likely to generate attractive risk-adjusted returns over the long term, supported by durable behavioral advantages and historical precedent.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 31 2026 | 2025 Q4 | AAPL, CPRT, GOOGL, LIN, META, TDG, VRSK | aerospace, Industrial, Long Term, Networks, Quality, Speculation, technology, value |
TDG LIN META |
YCG focuses on high-quality, recession-resistant toll takers that have historically outperformed over the long term but are currently experiencing underperformance in speculative markets. The firm believes quality stocks are undervalued as investors chase speculative opportunities. TransDigm represents a portfolio of aerospace parts with mission-critical, proprietary characteristics and little competition. The aerospace aftermarket benefits from secular growth in air travel and regulatory barriers that create pricing power for parts suppliers. Linde operates in industrial gases with economies of scale advantages and take-or-pay contracts that provide guaranteed income streams. The business benefits from mission-critical applications across diverse industries and expensive transportation costs that create local monopolies. Meta demonstrates the resilience of large networks through its ability to adapt to competitive threats and regulatory changes. The company's massive user base and AI investments have enabled it to maintain growth in engagement and advertising despite challenges from TikTok and Apple's privacy changes. |
| Sep 30 2025 | 2025 Q3 | AAPL, AMZN, BABA, CBRE, CRH, CSGP, EL, GOOGL, MCO, META, MLM, MSFT, NKE, SPGI, VMC | AI, Bubble, Cloud, Data centers, diversification, Quality, risk management, technology | - | The banking crisis revealed structural duration and liquidity risks, prompting deposit flight and tightening credit conditions. Brokerage accounts remain insulated due to asset segregation, insurance layers, and regulatory oversight. Quality businesses with dominant market positions, strong balance sheets, and pricing power remain attractive in uncertain environments. |
| Jun 30 2025 | 2025 Q2 | - | - | - | |
| Mar 31 2025 | 2025 Q1 | - | - | - | |
| Dec 31 2024 | 2024 Q4 | - | - | - | |
| Sep 30 2024 | 2024 Q3 | - | - | - | |
| Jun 30 2024 | 2024 Q2 | - | - | - | |
| Mar 31 2024 | 2024 Q1 | - | - | - | |
| Dec 31 2023 | 2023 Q4 | - | - | - | |
| Sep 30 2023 | 2023 Q3 | - | - | - | |
| Jun 30 2023 | 2023 Q2 | - | - | - | |
| Mar 31 2023 | 2023 Q1 | - | - |
LGND CNI CRH LN VMC FICO SBR WM US RSG US CP CN CME US |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Industrial GasesSOL Group operates one of Europe's leading industrial gas franchises serving 50k customers across 32 countries, with a network of 39 air-separation units and 50+ filling plants that took almost a century to assemble. The business creates regional oligopolies due to expensive logistics of moving gases, with high switching costs from buried pipelines and bulk tanks installed at customer sites. |
Industrial Gases Air Separation Regional Oligopoly Infrastructure Logistics |
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 | |
Social MediaMeta demonstrates the resilience of large networks through its ability to adapt to competitive threats and regulatory changes. The company's massive user base and AI investments have enabled it to maintain growth in engagement and advertising despite challenges from TikTok and Apple's privacy changes. |
Social Media Network Effects AI Investment User Engagement Advertising | |
SpaceSpace is becoming part of everyday life with satellites helping run internet, support defense, and guide transportation. Lower launch costs and improved satellite capabilities are creating growing businesses with steady, long-term revenue. |
Satellites Launch Communications Infrastructure Services | |
| 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 |
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 | |
Data CentersSupply constraints curtailing infrastructure buildout rate, but compute capacity is being used immediately upon coming online. This differs from dot-com bubble when dark fiber was installed ahead of need. Labor, power and land shortages creating bottlenecks. |
Supply Constraints Utilization Bottlenecks Infrastructure |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Mar 31, 2025 | Fund Letters | Brian Yacktman | CNI | Canadian National Railway | Industrials | Railroads | Bull | NYSE | efficiency, Logistics, Margins, Pricing, railroads | Login |
| Mar 31, 2025 | Fund Letters | Brian Yacktman | CRH LN | CRH plc | Materials | Construction Materials | Bull | London Stock Exchange | aggregates, construction, inflation, infrastructure, materials, Monopolies, Nimby, Pricingpower | Login |
| Jun 30, 2025 | Fund Letters | Brian Yacktman | VMC | Vulcan Materials Company | Materials | Construction Materials | Bull | NYSE | aggregates, Buildingmaterials, construction, Inflationprotection, infrastructure, Nimby, Pricingpower | Login |
| Jun 30, 2024 | Fund Letters | Brian Yacktman | FICO | Fair Isaac Corporation | Information Technology | Application Software | Bull | NYSE | — | Login |
| Jun 30, 2023 | Fund Letters | Brian Yacktman | SBR | Sabine Royalty Trust | Energy | Oil & Gas Royalty Trusts | Bull | NYSE | Depletion, Distributions, energy, Gas, Income, oil, Reserves, Royalty | Login |
| Jun 30, 2023 | Fund Letters | Brian Yacktman | WM US | Waste Management, Inc. | Industrials | Environmental & Facilities Services | Bull | NYSE | inflation, Landfills, Networks, Nimby, Pricingpower, Tollcollector, waste | Login |
| Jun 30, 2023 | Fund Letters | Brian Yacktman | RSG US | Republic Services, Inc. | Industrials | Environmental & Facilities Services | Bull | NYSE | Inflationhedge, infrastructure, Landfills, Networks, Nimby, Pricingpower, waste | Login |
| Jun 30, 2023 | Fund Letters | Brian Yacktman | CP CN | Canadian Pacific Kansas City Limited | Industrials | Railroads | Bull | TSX | Freight, infrastructure, Networks, Nimby, Pricingpower, railroads, Reshoring | Login |
| Sep 30, 2025 | Fund Letters | Brian Yacktman | CME US | CME Group Inc. | Financials | Financial Exchanges & Data | Bull | NASDAQ | Capitalmarkets, Clearinghouse, Derivatives, Exchanges, Liquidity, Networks, Pricingpower | Login |
| Jan 31, 2026 | Fund Letters | Brian Yacktman | TDG | TransDigm Group Inc. | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, aftermarket, annuity, Monopoly, Pricing power | Login |
| Jan 31, 2026 | Fund Letters | Brian Yacktman | LIN | Linde plc | Materials | Industrial Gases | Bull | New York Stock Exchange | Contracts, Industrial Gases, Inflation Protection, Pricing power, scale | Login |
| Jan 31, 2026 | Fund Letters | Brian Yacktman | META | Meta Platforms Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, monetization, network effects, social media | Login |
| Mar 31, 2025 | Fund Letters | Brian Yacktman | LGND | Ligand Pharmaceuticals Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, Blockbuster, cashflow, Launches, royalties | Login |
| TICKER | COMMENTARY |
|---|---|
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| CPRT | we recently trimmed some of our mega-cap tech holdings and other outperformers and used the proceeds to buy more of our underperforming holdings such as Copart, Inc. |
| 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. |
| LIN | While the company remains a high-quality global leader in industrial gases, shares of Linde plc declined nearly 10% in Q4 due to a persistent industrial gas volume recession, softer guidance and global macroeconomic concerns. From a macro standpoint, the company continues to struggle with negative base volumes in its core industrial segments. |
| 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. |
| TDG | TransDigm is a leading aerospace parts supplier that designs and produces highly engineered components for almost every commercial and military aircraft in service today. TransDigm has spent the last 30 years building a portfolio of hundreds of thousands of parts with these characteristics. And while each part breaks unpredictably and infrequently, by assembling this vast portfolio, they have essentially created a collection of near monopolies that create an incredibly smooth and high pricing power annuity stream. |
| VRSK | From a stock selection perspective, our positions in Verisk Analytics, Inc. (VRSK) and Watsco, Inc. (WSO) were the biggest laggards. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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