| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 3.5% |
Latitude Global Fund returned 3.5% year-to-date through Q2 2026, underperforming markets dominated by semiconductor and AI infrastructure gains the fund deliberately avoids. Manager draws explicit parallels between current semiconductor cycle and 2003-2008 mining supercycle, where BHP earnings and shares both rose 10x yet buying after 2005 produced zero or negative 10-year returns. Micron has similarly seen 10x earnings and price appreciation from 2022-2026, but manager sees deep capital loss risk ahead as South Korea's $500bn memory capacity investment and other supply-side expansions accelerate cycle end. Portfolio has significantly increased healthcare allocation, with manager doubling UnitedHealth position after Medicare reimbursement improvements and operational turnaround evidence. Added substantially to Cencora after 20% decline to 12.5x PE despite raised guidance, and Royalty Pharma up 47% year-to-date while trading at 11x cash flow. Manager emphasizes healthcare, utilities, and consumer stocks trade at valuations not seen since dot-com bubble, historically strong entry points. Maintains value discipline and willingness to leave party before music stops, focusing on durable, knowable growth franchises.
Latitude Global Fund pursues durable, knowable growth at attractive valuations while avoiding late-cycle momentum sectors. The manager explicitly avoids semiconductors despite extraordinary 2026 gains, drawing parallels to the 2003-2008 mining supercycle where buying after 2005 produced zero or negative 10-year returns. Instead, the fund has significantly increased healthcare exposure, doubling UnitedHealth after operational improvements and adding substantially to Cencora and Royalty Pharma at attractive valuations. The manager believes healthcare, utilities, and consumer stocks are trading at valuations not seen since the dot-com bubble, positioning for strong long-term returns while semiconductor supply investments sow seeds for cycle reversal.
Manager expects portfolio companies to continue delivering strong fundamental growth despite current market focus on semiconductors and AI. Believes in strength of healthcare franchises and their ability to deliver returns, though acknowledges investor attention is elsewhere. Maintains conviction that avoiding late-cycle semiconductor exposure is prudent despite near-term underperformance.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 9 2026 | 2026 Q2 | BHP, COR, MU, RIO, RPRX, TXN, UNH | AI, Concentration risk, healthcare, Managed Care, semiconductors, valuation, value |
UNH COR RPRX |
Latitude Global Fund deliberately avoids semiconductor euphoria despite 2026 outperformance, drawing parallels to 2003-2008 mining supercycle that produced zero returns for late entrants. Manager aggressively deployed into healthcare at dot-com-era valuations, doubling UnitedHealth after operational improvements and adding substantially to Cencora and Royalty Pharma. Portfolio up 3.5% year-to-date with conviction that current positioning will deliver superior long-term returns as semiconductor supply investments accelerate cycle reversal. |
| Apr 12 2026 | 2026 Q1 | KR, TSCO.L, UL | Defensive, Geopolitical, Grocers, risk management, value | KR | Latitude Global Fund positions defensively amid Trump-driven geopolitical fragmentation, adding Kroger while selling Unilever for superior risk-adjusted returns. The fund targets inflation-protected businesses trading at attractive valuations, avoiding cyclical enthusiasm in AI and commodities. With global institutions under pressure and a new protectionist cycle emerging, defensive sectors offer better opportunities than elevated cyclical valuations. |
| Feb 11 2026 | 2025 Q4 | AI.PA, ASSA-B.ST, AZO, COR, DEO, DG.PA, DLTR, EIF.PA, GOOGL, ICE, JPM, MCK, RPRX, RYA.L, SHEL, TSCO.L, UNH, V | AI, Buybacks, Europe, growth, healthcare, infrastructure, retail, value |
DLTR AZO MCK RPRX RYAAY GOOGL JPM ICE |
Latitude delivered 21% returns in 2025 through disciplined value investing focused on fundamental earnings growth. The portfolio's defensive positioning in healthcare, discount retail, and infrastructure proved resilient while benefiting from selective trading opportunities. With companies generating 7% free cash flow yields and committed to 5% annual shareholder returns through dividends and buybacks, the strategy offers compelling long-term prospects at attractive 14x PE valuation. |
| Oct 31 2025 | 2025 Q3 | AMZN, AZO, COR, COST, DG.PA, FOUG.PA, GOOGL, IBKR, JPM, KR, MCK, NFLX, RYA.L, SONY, SPOT, TGT, WMT | Buybacks, dividends, Europe, financials, healthcare, industrials, technology, value | - | Latitude delivered 17% returns in Q3 by avoiding overvalued AI stocks and focusing on cash-generative companies with strong competitive positions. Eight holdings returned over 30%, including Interactive Brokers, drug distributors McKesson and Cencora, and European industrials. The relative value approach targets asymmetric opportunities in fragmented industries undergoing consolidation while benefiting from capital return programs. |
| Jun 30 2025 | 2025 Q2 | AZO, CPR.MI, DEO, DLTR, FIVE, MCK, NVO, RCO.PA, RI.PA, WMT | Aftermarket, Alcohol, Automotive, consumer, discount, retail, value |
AZO DLTR DEO |
Latitude demonstrates disciplined value investing by holding through 50% drawdowns in AutoZone, Dollar Tree, and Diageo. AutoZone proved disruption fears overblown, Dollar Tree unlocked value through Family Dollar sale enabling aggressive capital returns, while Diageo's volume issues appear cyclical rather than structural. The strategy emphasizes business fundamentals over market sentiment during negative narrative cycles. |
| Mar 31 2025 | 2025 Q1 | TSCO.L | active management, Grocers, Market share, Quality, Uk, value | TSCO.L | Latitude sees opportunity in high-quality businesses overlooked by AI-obsessed markets. Tesco exemplifies this thesis at 11x PE with dominant UK market position, strong cash generation, and weakened competitors. Despite recent volatility from Asda's price cuts, Tesco's competitive advantages and shareholder-friendly capital allocation position it for continued double-digit returns as market rotation begins. |
| Dec 31 2024 | 2024 Q4 | AI.PA, AZO, BAC, BP, COR, DEO, DG.PA, DLTR, FGR.PA, GOOGL, GS, HEIA.AS, IBKR, IMB.L, JPM, KO, MCK, RYA.L, SHEL, SONY, TSCO.L, UL, UNH, V, WEC | Banking, Consumer Staples, Defensive, energy, global, healthcare, value | - | Latitude delivered 14% returns while avoiding overvalued AI boom, focusing on undervalued banks, consumer staples, healthcare, and energy. Portfolio constructed with 96% active share to deliver returns even if US market leadership falters. Strong banking performance from consolidation and regulatory tailwinds, while defensive sectors offer re-rating potential at generational low valuations. |
| Sep 30 2024 | 2024 Q3 | BAC, COR, DLTR, GOOGL, GS, IBKR, JPM, MCK, RYAAY, TSCO.L, UNH | Airlines, banks, Defensive Growth, Europe, healthcare, trading, value |
RYA.L COR UNH |
Latitude actively managed through Q3 volatility, adding Ryanair at 38% discount and expanding healthcare exposure via UnitedHealth while harvesting bank gains. Portfolio focuses on defensive growth names trading at 17x PE with 15% expected growth. Manager optimistic about current positioning and pipeline opportunities as market volatility creates attractive entry points. |
| Jun 30 2024 | 2024 Q2 | ATLA.MI, DG.PA, FGR.PA | concessions, France, inflation, infrastructure, Motorways, value |
DG.PA FGR.PA |
Latitude opportunistically increased positions in French infrastructure giants Vinci and Eiffage during election-driven sell-off. Nationalization fears are overblown given legal protections and prohibitive EUR 50bn cost. Companies offer inflation-linked motorway cash flows plus growing infrastructure businesses, trading at ten-year lows despite strong fundamentals and 50-80% estimated upside to intrinsic value. |
| Mar 31 2024 | 2024 Q1 | IBKR | Brokerage, Competitive Advantage, Fintech, growth, technology | IBKR | Latitude invested in Interactive Brokers, a fintech leader with three competitive advantages: lowest customer costs, highest operating efficiency (70% margins vs peers' 20-40%), and superior technology platform. The company has grown accounts 270% since 2019 and targets 20 million accounts medium-term in a 7-10% growth industry, generating record $2.8 billion profits. |
| Dec 31 2023 | 2023 Q4 | AAP, AI.PA, AZO, BAC, DEO, DG.PA, EIFFAGE.PA, EQNR, GOOGL, GS, JPM, MCK, SHEL, SONY, TSCO.L, V, WEC | Buybacks, Consumer Staples, dividends, earnings, energy, global, Utilities, value | - | Latitude's value-focused portfolio delivered 5% returns in 2023 despite 11% underperformance versus global markets, primarily due to consumer staples allocation and Magnificent Seven underweight. Portfolio earnings grew 9% with strong individual performers including Tesco and Sony. Manager maintains conviction in deeply discounted consumer staples and energy sectors, expecting significant valuation re-rating as fundamentals improve. |
| Sep 30 2023 | 2023 Q3 | AI.PA, AZO, DEO, GOOGL, JPM, MCK, SONY, V | cash flow, earnings, Quality, relative value, technology, value | - | Latitude targets quality companies with strong fundamentals at attractive valuations, contrasting with overvalued technology concentration. Portfolio trades at 12x PE with 8% FCF yield versus 4-5% cash, delivering 19% annual earnings growth. Manager sees substantial opportunities as extreme market consensus in Magnificent Seven creates mispricing in overlooked quality businesses with superior relative value propositions. |
| Jun 30 2023 | 2023 Q2 | AAPL, AMZN, AZO, BP, EQNR, GOOGL, MSFT, SHEL | AI, Capital Cycle, energy, oil, technology, value |
EQNR SHEL |
Latitude deliberately underexposed to AI rally, believing profits years away and preferring patience during early disruption. Capital investment broadening beyond tech to manufacturing and infrastructure should benefit neglected industries. Swapped Equinor for Shell for better earnings yield. Portfolio positioned for multi-year shift in market leadership away from expensive technology concentration toward broader opportunity set. |
| Mar 31 2023 | 2023 Q1 | BAC, GS, JPM | Banking, Credit Stress, Fed policy, financials, rates, valuation |
JPM BAC EQNR NO SHEL LN TSCO LN DGE LN WEC US 6758 JP MCK US AZO US AI FP GOOGL US IBKR DG FP UNH IBKR US JPM US BAC US V US DLTR US ULVR LN KO US UNH US COR US MCK COR AZO JPM ABAC |
Banking crisis creates opportunity for money center banks as regional competitors fail from duration risk. JPMorgan, Bank of America, and Goldman Sachs have superior capital ratios and diversified deposits protecting them from Silicon Valley Bank-style failures. Fed support through new lending facilities removes forced asset sales. Banks benefit from deposit migration and consolidation while trading at attractive 9x normalized earnings. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
SemiconductorsManager explicitly avoids semiconductor stocks despite extraordinary Q2 gains, drawing parallels to the 2003-2008 mining supercycle. Micron earnings and share price both up 10x from 2022-2026, but manager sees risk of deep capital losses ahead due to inevitable supply-side investments like South Korea's $500bn memory capacity expansion. |
Memory Foundries Chip Designers Semi Equipment Semiconductors |
AIManager views AI capex boom as comparable in magnitude to China's $2tn infrastructure spending post-2001. Acknowledges AI spending will continue and suppliers are making real money, but warns that slower demand growth and higher supply could end the cycle. Sees bubble risk in earnings themselves rather than multiples. |
Data Centers Cloud Infrastructure GPUs AI | |
HealthcareManager significantly increased healthcare allocation, viewing the sector as out of favor and trading at valuations not seen since dot-com bubble. Doubled UnitedHealth position after operational improvements, added substantially to Cencora after 20% drop, and Royalty Pharma up 47% year-to-date while still trading at 11x cash flow. |
Managed Care Medical Distribution Pharmaceuticals Biotechnology | |
ValueManager emphasizes value discipline, stating willingness to leave party before music stops. Focuses on sectors with reliable growth trading at attractive valuations. Healthcare, utilities, and consumer stocks trading at valuations not seen since dot-com bubble, from which point returns were very strong. |
Value Quality Valuation | |
| 2026 Q1 |
GrocersThe fund added Kroger as a defensive investment, viewing supermarkets as inflation-protected businesses that benefit during economic stress. Kroger trades at attractive valuations while delivering consistent earnings growth and occupying dominant market positions. |
Kroger Supermarkets Defensive Inflation Market Share |
Trade PolicyTrump's extractive approach toward allies and adversaries is fragmenting global institutions like NATO and WTO. This represents a major shift from 30 years of global cooperation toward individualism and protectionism, creating a new geopolitical cycle. |
Trump Protectionism NATO WTO Geopolitical | |
| 2025 Q4 |
AIEdgewood owns four AI infrastructure companies (NVIDIA, Broadcom, ASML, Synopsys) representing significant portfolio weight. The firm views AI as creating new product opportunities and efficiencies, with Draft One described as an AI killer app for police departments. AI Era Plan is the fastest booked Axon product to date. |
Infrastructure Software Semiconductors Applications Enterprise |
SoftwareSoftware companies in the portfolio delivered strong earnings growth with the sector showing 32% average EPS growth in 3Q25. Edgewood emphasizes software's recurring revenue model and high margins, with companies like ServiceNow, Intuit, and Netflix representing core holdings. |
SaaS Enterprise Recurring Revenue Cloud Margins | |
GrowthThe portfolio is structured around three growth buckets with estimated long-term EPS growth rates of 10-15%, 16-20%, and 21%+. Portfolio companies delivered 27% average YTD EPS growth versus 7% stock performance, creating what Edgewood calls stored alpha opportunity. |
EPS Growth Compounding Quality Fundamentals Alpha | |
SemiconductorsSemiconductor holdings include NVIDIA, Broadcom, ASML, and Synopsys, with the sector benefiting from AI buildout demand. NVIDIA showed 75% EPS growth while Broadcom demonstrated 37% growth, though the sector faced some volatility during the quarter. |
AI Infrastructure Memory Equipment Foundries Chips | |
| 2025 Q3 |
BuybacksThe fund benefits from companies returning capital through dividends and buybacks, with almost 5% of annual return coming from this capital return. Ryanair has retired 7% of shares outstanding in just the last year. |
Capital Return Share Repurchases Shareholder Returns Cash Generation Capital Allocation |
DividendsCompanies in the portfolio are delivering large amounts of capital back to shareholders through dividends and buybacks, contributing almost 5% of annual return due to the highly cash-generative nature of the businesses. |
Dividend Yield Cash Generation Shareholder Returns Capital Return Income | |
ValueThe fund employs a relative value approach, seeking asymmetric alternatives to buying the market. They focus on valuation-conscious investing, with companies like McKesson and Cencora trading at 18x PE despite strong performance. |
Relative Value Valuation Asymmetric PE Multiples Undervalued | |
Capital MarketsInteractive Brokers represents a dominant technology platform in institutional client services, benefiting from scalable network effects and lowest cost proposition. The business has grown from 1 million to 4 million accounts over five years. |
Brokerage Trading Platform Network Effects Institutional Services Technology Platform | |
Medical DistributionMcKesson and Cencora operate in US drug distribution, overseeing about 65% of the market between them. The businesses benefit from increased complexity following the opioid crisis, creating higher margins and stronger barriers to entry. |
Drug Distribution Healthcare Supply Chain Pharmaceutical Distribution Market Share Barriers to Entry | |
Auto AftermarketAutoZone operates in a highly fragmented marketplace selling auto parts, with 50% of the industry comprised of very small groups. The company has generated 15% EPS growth for the past ten years through an integrated wholesale distribution model. |
Auto Parts Fragmented Market Distribution Market Consolidation Aftermarket | |
| 2025 Q2 |
Discount RetailDollar Tree represents a compelling opportunity following the sale of Family Dollar for $1bn, allowing focus on the core Dollar Tree banner with strong same-store sales growth. The business trades at attractive valuations with significant capital return potential. |
Dollar Tree Family Dollar Discount Consumer Retail |
Auto AftermarketAutoZone demonstrates resilience through market cycles, having weathered concerns about EV disruption and Amazon competition. The business model remains strong with defensive characteristics and consistent cash generation. |
AutoZone Aftermarket Parts Automotive Disruption | |
AlcoholDiageo faces volume headwinds attributed to inventory destocking rather than structural demand issues. Gen Z accounts for only 2-3% of sales, and spirits remain a long-lived category with potential for market share gains and brand acquisitions. |
Diageo Spirits Volumes Inventory Demographics | |
| 2025 Q1 |
GrocersDetailed analysis of Tesco as a dominant UK food retailer with 28.5% market share. The company has simplified operations by exiting international markets and is positioned to benefit from market share gains against weakened competitors like Asda and Morrisons. Strong cash generation enables significant shareholder returns through buybacks and dividends. |
Food retail Market share UK retail Cash generation Competitive positioning |
ValueFocus on high-quality businesses trading at attractive valuations while the market obsesses over concentrated AI and quality growth stocks. Tesco exemplifies this approach, trading at 11x PE despite strong fundamentals and cash flow generation. The strategy targets businesses overlooked by passive fund flows. |
Undervaluation Quality businesses PE multiples Market inefficiency Active management | |
| 2024 Q4 |
BankingStrong performance from US banks with Goldman Sachs +52%, JP Morgan +44%, and Bank of America +34%. Banks benefiting from consolidation, technology investments, and potential regulatory improvements under Trump administration. Credit risks remain low with income-driven rather than credit-driven economic expansion. |
Consolidation Technology Regulation Credit |
Consumer StaplesMixed performance with defensive stocks like Tesco, Unilever, and Imperial Brands delivering strong returns while beverage companies faced headwinds. Valuations at generational lows provide attractive entry points for defensive, inflation-linked returns with no five-year negative periods historically. |
Defensive Inflation Valuations Margins | |
HealthcareIncreased exposure to underperforming healthcare sector with new position in United Health. Sector benefits from aging demographics, treatment expansion, and government outsourcing trends. Drug distributors McKesson and Cencora positioned for 14-15% earnings growth from market expansion and margin recovery. |
Demographics Outsourcing Distribution Margins | |
EnergyEnergy had subdued year with Shell flat and BP down 10%. Companies generating 15%+ free cash flow yields with 12% returned to shareholders. Supply-side asymmetry from US production deceleration and OPEC price preferences above $70. Energy viewed as effective inflation hedge for volatile decade ahead. |
Cash Flow Supply Inflation Asymmetry | |
AIPortfolio deliberately avoids AI boom exposure due to overcapacity risks and uncertain returns on capital. Historical technology revolutions rewarded patience - mobile phones in 1990s and eCommerce in 2000s. Current AI capital expenditure boom likely to end in major overcapacity similar to historical patterns. |
Overcapacity Returns History Patience | |
| 2024 Q3 |
AirlinesAdded Ryanair as a full position after shares fell 38% on weaker fare guidance. The company has the lowest cost structure in European short-haul market with decisive counter-cyclical investments in fleet. Market share has grown from 5% to 20% over twenty years with passenger numbers expected to grow another 50%. |
Travel Airlines Europe Cost Structure Market Share |
BanksBank holdings have been incredibly successful over eight years, with Goldman Sachs, Bank of America and JP Morgan nearly doubling in the past year. Now maintain 8% weight split between Bank of America and JP Morgan after selling Goldman to invest in greater opportunities elsewhere. |
Banks Money Center Banks Investment Banks Value | |
Medical DistributionReduced McKesson position after 70% rise, then added Cencora following weakness on Humira generic rollout concerns. This diversification reduces concentration risk while maintaining sector allocation for defensive growth characteristics and technology investments. |
Medical Distribution Healthcare Defensive Growth Concentration Risk | |
Managed CareAdded UnitedHealth position after reducing Alphabet substantially. Health insurance is a large defensive growth industry with UnitedHealth as market leader, growing earnings 18% annually from 2000-2023. The Optum services business now generates 50% of profits. |
Managed Care Healthcare Defensive Growth Market Leader | |
| 2024 Q2 |
InfrastructureThe fund focuses on French motorway concessions through Vinci and Eiffage, which provide inflation-linked cash flows and structural growth from increasing traffic. These assets benefit from contracted toll increases tied to 70% of CPI and steady 2% annual traffic growth, while the companies use cash flows to invest in broader infrastructure, energy contracting, and renewable concessions. |
Motorways Concessions Tolls Traffic Maintenance |
InflationFrench toll roads provide valuable inflation protection through contracted increases that amount to 70% of CPI, which becomes increasingly valuable as inflation risks return. The manager views this inflation linkage as a key defensive characteristic of the motorway assets. |
CPI Tolls Protection Contracts | |
| 2024 Q1 |
Capital MarketsInteractive Brokers operates as a financial technology company providing online trading platforms to sophisticated individual investors, hedge funds, wealth managers, and other brokers. The company has grown its prime brokerage market share from 1% in 2016 to 6% globally, benefiting from the fintech revolution as other platforms use their technology infrastructure. |
Brokerage Trading Fintech Prime Brokerage Platforms |
FintechIBKR represents a technology-driven approach to financial services, using advanced trading tools, APIs, and smart routing technology. The company has been a pioneer in computerized trading since the 1970s and continues to invest heavily in technology to maintain competitive advantages through lower costs and better service delivery. |
Technology Innovation APIs Automation Digital | |
| 2023 Q4 |
Consumer StaplesManager holds significant allocation to consumer staples companies including Tesco, Unilever, Diageo, Imperial Brands, Heineken, and Coca-Cola. Sector trades at lowest valuation relative to market in 30 years aside from dot-com bubble. Expects earnings growth of 5-10% with potential for 20-50% valuation improvement as margins expand following input cost pressures. |
Consumer Staples Valuations Margins Emerging Markets Dividends |
EnergyBelieves integrated energy sector is exiting major downcycle and will produce exceptional returns. Oil supply and demand roughly balanced at 102m bpd. Small inventory changes lead to large oil price moves. Companies like BP and Shell have reduced shares outstanding by 15% in past two years through buybacks. |
Oil Energy Buybacks Supply Demand | |
UtilitiesAdded WEC Energy Group as new position. Utilities fell out of favor due to rising interest rates, creating opportunities. WEC offers 11-12% prospective shareholder return with 7-8% rate-base growth, 4% dividend yield, and exposure to AI datacenter growth and energy transition infrastructure investment. |
Utilities Energy Transition Data Centers Infrastructure AI | |
GamingSony's PlayStation business presents huge growth opportunity with PS5 console rollout. Sony on track to sell 25m PS5 units with long runway ahead, potentially selling five times this number if as popular as PS4. Razor blade model creates high-margin recurring revenue from games and services. |
Gaming PlayStation Sony Consoles Digital | |
MusicSony's music business continues growing with over 40 of Spotify Global Top 100 songs belonging to their publishing label. Streaming growth exceeded 20% this year. With 70% of US listening from songs over 8 years old, back catalogue compounds and becomes increasingly attractive over time. |
Music Streaming Sony Publishing Catalogue | |
| 2023 Q3 |
ValueManager emphasizes relative value investing, finding companies with strong fundamentals trading at attractive valuations. Portfolio trades at 12x PE with 8% FCF yield versus cash at 4-5%, offering superior risk-adjusted returns. Focus on businesses with durable competitive advantages at reasonable prices. |
Relative Value Free Cash Flow PE Ratio Valuation Opportunity Cost |
QualityPortfolio companies demonstrate high-quality characteristics with 19% annual earnings growth, improving return on equity trends, and strong competitive moats. Manager seeks businesses that can build value over time through franchise growth rather than just extracting value through trading. |
Return on Equity Earnings Growth Competitive Advantages Franchise Value Durability | |
| 2023 Q2 |
AIManager acknowledges AI revolution driving tech stock performance but maintains limited exposure due to belief that profits will take years to materialize. Views early stages of disruption as risky, preferring to wait for market clarity similar to mobile phone and eCommerce revolutions. |
Artificial Intelligence Technology Disruption Innovation ChatGPT |
Energy TransitionCapital spending is broadening beyond technology to traditional fixed assets including manufacturing, commodities, and energy. Government subsidies for environmental projects and renewable energy capex are growing alongside reshoring initiatives. |
Capital Investment Manufacturing Renewable Energy Subsidies Infrastructure | |
OilPortfolio holds two energy stocks based on capital cycle thesis. Oil prices driven by supply-demand dynamics and inventory levels. Current $80 oil justified by inventory levels, but adjusted for strategic reserve sales suggests $130 warranted price. |
Oil Prices Inventories Supply Demand Strategic Reserves OPEC | |
| 2023 Q1 |
Credit StressThe letter extensively discusses the banking crisis triggered by Silicon Valley Bank and Credit Suisse failures, analyzing how rapid interest rate increases caused mark-to-market losses on bank securities portfolios. The manager explains the mechanics of bank balance sheet stress and deposit flight risks in the digital banking era. |
Banking Crisis Deposit Flight Mark-to-Market HTM Securities Liquidity |
Money Center BanksThe fund owns JPMorgan, Bank of America, and Goldman Sachs, with detailed analysis of their resilience compared to failed regional banks. The manager argues these large banks have stronger capital ratios, diversified deposit bases, and better risk management, positioning them to benefit from regional bank consolidation. |
JPMorgan Bank of America Systemic Banks Capital Ratios Consolidation | |
RatesRising interest rates from near-zero to over 4% created both valuation headwinds for equities and banking sector stress through duration risk. The manager discusses how rate increases benefit bank net interest margins while creating mark-to-market losses on securities portfolios held by poorly managed banks. |
Fed Funds Rate Duration Risk Net Interest Margin Monetary Policy Yield Competition |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 9, 2026 | Fund Letters | Latitude Global Fund | UNH | UnitedHealth Group | Healthcare Plans | Managed Health Care | Bull | New York Stock Exchange | Government Reimbursement, health insurance, Healthcare services, managed care, Margin recovery, Medicare Advantage, Regulatory tailwinds, turnaround | Login |
| Jul 9, 2026 | Fund Letters | Latitude Global Fund | COR | Cencora | Medical Distribution | Health Care Distributors | Bull | New York Stock Exchange | compounder, consistent growth, Healthcare services, Healthcare Supply Chain, market overreaction, Pharmaceutical Distribution, Value | Login |
| Jul 9, 2026 | Fund Letters | Latitude Global Fund | RPRX | Royalty Pharma | Biotechnology | Biotechnology | Bull | NASDAQ | Biopharmaceutical Royalties, cash flow, Clinical trials, diversified portfolio, Drug Royalties, Healthcare Financing, Pipeline Optionality | Login |
| Apr 12, 2026 | Fund Letters | Latitude Global Fund | KR | Kroger | Grocery Stores | Food & Staples Retailing | Bull | New York Stock Exchange | Alternative Revenue, consumer staples, defensive, Food Retail, gas stations, grocery, Inflation Protection, margin expansion, market share, Private-label, Supermarket, Value | Login |
| Feb 11, 2026 | Fund Letters | Freddie Lait | DLTR | Dollar Tree, Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | consumer, discount, divestiture, retail, Trade-down | Login |
| Feb 11, 2026 | Fund Letters | Freddie Lait | AZO | AutoZone, Inc. | Consumer Discretionary | Specialty Retail | Bull | New York Stock Exchange | Auto parts, Competition, expansion, Margins, retail | Login |
| Feb 11, 2026 | Fund Letters | Freddie Lait | MCK | McKesson Corporation | Health Care | Health Care Distributors | Bull | New York Stock Exchange | Distribution, healthcare, resilience, specialty, Toll-Road | Login |
| Feb 11, 2026 | Fund Letters | Freddie Lait | RPRX | Royalty Pharma plc | Health Care | Pharmaceuticals | Bull | NASDAQ | Barriers, Biotech, cash flow, pharmaceuticals, royalties | Login |
| Feb 11, 2026 | Fund Letters | Freddie Lait | RYAAY | Ryanair Holdings plc | Industrials | Passenger Airlines | Bull | NASDAQ | Airlines, Capacity, Cost advantage, growth, Pricing | Login |
| Feb 11, 2026 | Fund Letters | Freddie Lait | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI, cloud, Data, Moat, Search | Login |
| Feb 11, 2026 | Fund Letters | Freddie Lait | JPM | JPMorgan Chase & Co. | Financials | Diversified Banks | Bull | New York Stock Exchange | Deposits, Diversified Bank, ROE, scale, technology | Login |
| Feb 11, 2026 | Fund Letters | Freddie Lait | ICE | Intercontinental Exchange, Inc. | Financials | Financial Exchanges & Data | Bull | New York Stock Exchange | Data, Electronification, Exchanges, oligopoly, valuation | Login |
| Oct 31, 2025 | Fund Letters | Freddie Lait | MCK | McKesson Corporation | Health Care | Health Care Technology | Bull | NYSE | buybacks, cashflow, Defensiveness, Distribution, growth, healthcare | Login |
| Oct 31, 2025 | Fund Letters | Freddie Lait | COR | Cencora Inc. | Health Care | Health Care Technology | Bull | NYSE | Biotech, cashflow, Defensiveness, Distribution, growth, Logistics | Login |
| Oct 31, 2025 | Fund Letters | Freddie Lait | AZO | AutoZone, Inc. | Consumer Discretionary | Specialty Retail | Bull | NYSE | Accounting, aftermarket, buybacks, Fragmentation, retail, scale | Login |
| Jun 30, 2025 | Fund Letters | Latitude Global Fund | AZO | AutoZone Inc | Consumer Discretionary | Automotive Retail | Bull | NYSE | Aftermarket Parts, Automotive Retail, autonomous vehicles, contrarian, Defensive Consumer, E-commerce Disruption, Share Buybacks, Value | Login |
| Jun 30, 2025 | Fund Letters | Latitude Global Fund | DLTR | Dollar Tree Inc | Consumer Staples | Discount Stores | Bull | NASDAQ | capital allocation, consumer staples, discount retail, divestiture, Share Buybacks, Sum-of-parts, turnaround, Value | Login |
| Jun 30, 2025 | Fund Letters | Latitude Global Fund | DEO | Diageo plc | Consumer Staples | Distillers & Vintners | Bull | NYSE | Beverages, brand portfolio, consolidation, Cyclical, Inventory Cycle, market share, Pricing power, Spirits, Value | Login |
| Mar 31, 2025 | Fund Letters | Latitude Global Fund | TSCO.L | Tesco PLC | Consumer Staples | Food & Staples Retailing | Bull | London Stock Exchange | cash generation, Clubcard, competitive moat, Equity, Food Retailer, market share, Share Buybacks, turnaround, UK Market Leader, Value | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | IBKR US | Interactive Brokers Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Brokerage, growth, scale, technology, Trading | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | JPM US | JPMorgan Chase & Co. | Financials | Diversified Banks | Bull | NYSE | Banks, Deposits, Regulation, Returns, scale | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | BAC US | Bank of America Corporation | Financials | Diversified Banks | Bull | NYSE | Banks, Credit, Deposits, Interest, valuation | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | V US | Visa Inc. | Financials | Data Processing & Outsourced Services | Bull | NYSE | Fintech, Moat, network, Payments, services | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | DLTR US | Dollar Tree, Inc. | Consumer Discretionary | General Merchandise Stores | Bull | NASDAQ | consumer, discount, Margins, retail, turnaround | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | ULVR LN | Unilever PLC | Consumer Staples | Personal Products | Bull | London Stock Exchange | activist, dividend, Personalcare, spin-off, Staples | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | KO US | The Coca-Cola Company | Consumer Staples | Soft Drinks | Bull | NYSE | Beverages, Concentrate, defensive, dividend, franchise | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | UNH US | UnitedHealth Group Incorporated | Health Care | Managed Health Care | Bull | NYSE | Demographics, healthcare, Insurance, scale, Vbc | Login |
| Dec 31, 2024 | Fund Letters | Freddie Lait | COR US | Cencora, Inc. | Health Care | Health Care Technology | Bull | NYSE | Distribution, growth, healthcare, oligopoly, specialty | Login |
| Sep 30, 2024 | Fund Letters | Freddie Lait | UNH | UnitedHealth Group Inc. | Health Care | Managed Health Care | Bull | NYSE | defensive, Eps, healthcare, Insurance, Integration, services | Login |
| Jun 30, 2024 | Fund Letters | Freddie Lait | DG FP | Vinci SA | Consumer Discretionary | Construction & Engineering | Bull | Euronext Stock Exchange | compounding, Concessions, Europe, inflation, infrastructure, Tollroads | Login |
| Mar 31, 2024 | Fund Letters | Freddie Lait | IBKR | Interactive Brokers Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Brokerage, Fintech, growth, Margins, Moat, NIM, scale | Login |
| Dec 31, 2023 | Fund Letters | Freddie Lait | TSCO LN | Tesco PLC | Consumer Discretionary | Specialty Stores | Bull | London Stock Exchange | grocery, inflation, marketshare, supermarkets, valuation | Login |
| Dec 31, 2023 | Fund Letters | Freddie Lait | DGE LN | Diageo plc | Consumer Staples | Distillers & Vintners | Bull | London Stock Exchange | Emerging, Inventory, margin, premiumization, Spirits | Login |
| Dec 31, 2023 | Fund Letters | Freddie Lait | WEC US | WEC Energy Group, Inc. | Utilities | Multi-Utilities | Bull | NYSE | Decarbonization, dividend, infrastructure, Regulation, utilities | Login |
| Dec 31, 2023 | Fund Letters | Freddie Lait | 6758 JP | Sony Group Corporation | Information Technology | Movies & Entertainment | Bull | NYSE | buybacks, Content, Gaming, semiconductors, Streaming | Login |
| Dec 31, 2023 | Fund Letters | Freddie Lait | MCK US | McKesson Corporation | Health Care | Health Care Technology | Bull | NYSE | buybacks, Distribution, Generics, healthcare, Margins | Login |
| Dec 31, 2023 | Fund Letters | Freddie Lait | AZO US | AutoZone, Inc. | Consumer Discretionary | Specialty Stores | Bull | NYSE | aftermarket, Autos, Competition, expansion, Pricing | Login |
| Dec 31, 2023 | Fund Letters | Freddie Lait | AI FP | L'Air Liquide S.A. | Information Technology | Industrial Machinery | Bull | Euronext Stock Exchange | energy, Gases, Hydrogen, Industrial, infrastructure | Login |
| Dec 31, 2023 | Fund Letters | Freddie Lait | GOOGL US | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Regulation, Search | Login |
| Jun 30, 2023 | Fund Letters | Freddie Lait | EQNR NO | Equinor ASA | Energy | Integrated Oil & Gas | Bear | - | cashflow, energy, Europe, Gas, valuation | Login |
| Jun 30, 2023 | Fund Letters | Freddie Lait | SHEL LN | Shell plc | Energy | Integrated Oil & Gas | Bull | London Stock Exchange | buybacks, dividend, energy, oil, valuation | Login |
| Mar 31, 2023 | Fund Letters | Freddie Lait | JPM | JPMorgan Chase & Co. | Financials | Diversified Banks | Bull | NYSE | Banks, Capital, consolidation, Deposits, Liquidity | Login |
| Mar 31, 2023 | Fund Letters | Freddie Lait | BAC | Bank of America Corp. | Financials | Diversified Banks | Bull | NYSE | Banks, Deposits, profitability, Regulation, valuation | Login |
| Jul 31, 2023 | Fund Letters | Latitude Global Fund | EQNR | Equinor ASA | Energy | Oil, Gas & Consumable Fuels | Neutral | Oslo Stock Exchange | Energy crisis, European Gas, Free Cash Flow, geopolitical risk, Johan Sverdrup, LNG Terminals, Norwegian Continental Shelf | Login |
| Jul 31, 2023 | Fund Letters | Latitude Global Fund | SHEL | Shell plc | Energy | Oil, Gas & Consumable Fuels | Bull | London Stock Exchange | Chemicals, earnings yield, Integrated Oil, margin of safety, Marketing, renewables, UK Listing, valuation discount | Login |
| - | Fund Letters | Latitude Global Fund | RYA.L | Ryanair Holdings plc | Industrials | Airlines | Bull | London Stock Exchange | Ancillary Revenue, capital returns, Counter-Cyclical Investment, European Aviation, Fleet Modernization, market share growth, net cash position, operational efficiency, Ultra Low-Cost Carrier | Login |
| - | Fund Letters | Latitude Global Fund | COR | Cencora Inc | Health Care | Health Care Distributors | Bull | New York Stock Exchange | customer concentration risk, Drug Distribution, Generic Competition, Healthcare Supply Chain, portfolio diversification, Sector Rebalancing, US Healthcare | Login |
| - | Fund Letters | Latitude Global Fund | UNH | UnitedHealth Group Incorporated | Health Care | Managed Health Care | Bull | New York Stock Exchange | Below Market Valuation, Consistent Execution, Defensive growth, health insurance, Healthcare Technology, market leader, Optum Services, US Healthcare | Login |
| - | Fund Letters | Latitude Global Fund | IBKR | Interactive Brokers Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Account Growth, Brokerage, competitive moat, Fintech, market share gains, net interest margin, operating leverage, Prime Brokerage, technology, Trading Platform | Login |
| - | Fund Letters | Latitude Global Fund | DG.PA | Vinci SA | Industrials | Construction & Engineering | Bull | Euronext Paris | Concessions, construction, defensive, energy transition, france, Inflation Protection, infrastructure, Motorways, Toll Roads, Value | Login |
| - | Fund Letters | Latitude Global Fund | FGR.PA | Eiffage SA | Industrials | Construction & Engineering | Bull | Euronext Paris | Concessions, construction, defensive, energy transition, france, Inflation Protection, infrastructure, Motorways, Toll Roads, Value | Login |
| - | Fund Letters | Latitude Global Fund | JPM | JPMorgan Chase & Co. | Financials | Banks | Bull | NYSE | Banks, capital ratios, consolidation, defensive, Deposit Flight, Equity, financial services, HTM Securities, Money Center Bank, ROC, Value | Login |
| - | Fund Letters | Latitude Global Fund | ABAC | Bank of America Corporation | Financials | Banks | Bull | NYSE | Banks, BTFP, deposit base, Equity, financial services, HTM Securities, interest rate risk, Money Center Bank, ROC, Systemic Bank, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| MU | We have owned Micron and Texas Instruments in the past, so are not against the idea that such cyclical companies can generate strong returns, but the starting point matters. These astounding performance figures are very similar to those seen today in semiconductor companies like Micron, with earnings up roughly ten-fold and a share price to match. Where we are in the ultimate journey for Micron's earnings and share price is, clearly, impossible to know, but the potential for deep and extended capital losses from here seem highly plausible. |
| TXN | We have owned Micron and Texas Instruments in the past, so are not against the idea that such cyclical companies can generate strong returns, but the starting point matters. |
| BHP | Companies like RIO Tinto and BHP Billiton dominated the headlines, and investors' portfolios. BHP's earnings (and its share price) grew around 10x from 2003 to 2008 when it was still trading on a very reasonable sounding 8x forward PE ratio. If you bought in any time after 2004 your ten-year annualised return was below 10%, any time after 2005 and it was 0% or worse over the next decade. |
| RIO | Companies like RIO Tinto and BHP Billiton dominated the headlines, and investors' portfolios. |
| UNH | At the beginning of the quarter, we significantly added to UnitedHealth, approximately doubling the size of the position. A 2.5% deviation of the $400bn healthcare costs paid by UnitedHealth annually created a -$10bn adverse impact on the business, or roughly 35% of earnings. Year-to-date, we've seen three positive developments. The rate at which the federal government reimburses Medicare Advantage programmes was increased by +2.5% more than the initial proposal. The CMS also adjusted the provider quality scoring mechanism that determines the level of rebates to Managed Care companies like UnitedHealth, effectively making it easier to obtain the highest ratings, allowing the industry to generate an incremental $18bn, restoring profitability. Finally, we had Q1 earnings where UnitedHealth's Medical Cost Ratio (the proportion of premiums spent on healthcare costs) beat by 1.6% and management commentary suggested that cost trends are running below their expectations for 2026. We added to the position at $307, with UnitedHealth closing the quarter at $416. |
| COR | In May, Cencora reported earnings. The company has generated fundamental value growth (earnings per share + dividends) of 15% per year for the past five and ten years, and our research suggests this will continue. On their earnings call, the company noted a 2% miss in recent earnings estimates, while simultaneously increasing guidance for the full year by about 2%. The shares fell 20% to 12.5x PE. We added substantially to the position that day at $250 per share. |
| RPRX | Our most recent addition in the healthcare sector, Royalty Pharma, continues to deliver on its medium-term plan. As discussed in our 2025 Annual Report, the company earns royalties through financing a diversified collection of drugs which are already in production and has options over successful phase three results from the companies they support. They have reported positive outcomes from a few of these trials in 2026, allowing marginal increases in our forward-looking estimates. So far this year shares are up 47% and still trade on about 11x cash flow. |
| 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 | |||
