| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Oak Ridge delivered solid absolute returns in 2025 despite slightly trailing growth benchmarks across their portfolio strategies. The firm maintains concentrated exposure to Technology and Healthcare, which together represent over 60% of their positioning. Technology holdings benefited from mega-cap earnings growth of 31% that lowered valuations to reasonable levels, though hyperscalers faced pressure over capital expenditure concerns. Healthcare emerged as the standout performer in Q4, driven by weight loss companies, European pharmaceuticals with positive trial results, and breakthrough biotech innovations in autoimmune diseases. The managers emphasize that valuations matter, citing Cisco's 25-year journey back to bubble-era highs and the stark valuation contrast between Walmart and Target. With the Fed cutting rates three times and potential fiscal stimulus ahead, they expect markets to become more selective and broaden out, creating opportunities for active management. AI adoption continues to accelerate but brings competitive pressures that will separate winners from losers across industries.
Oak Ridge maintains concentrated exposure to Technology and Healthcare sectors while emphasizing the importance of valuations and selective stock picking in an environment where AI adoption drives both opportunities and competitive pressures.
The stock market should be more selective and continue to broaden out, providing a positive backdrop for active managers. AI will rapidly grow into everyday lives while creating competition and margin pressure. Healthcare is expected to lead with strong positioning in the portfolio.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 2 2026 | 2025 Q4 | CSCO, TGT, WMT | AI, Fed policy, growth, healthcare, technology, Valuations | - | AI is for real and will rapidly grow into everyday lives, continuing to threaten jobs while creating opportunities to improve quality of life. Success breeds… |
| Oct 1 2025 | 2025 Q3 | - | dispersion, growth, megacaps, momentum, Quality | - | Momentum-driven markets favor unprofitable and speculative companies, creating challenges for quality-focused strategies. Large-cap tech dominance persists, widening dispersion between growth and value and concentrating returns… |
| Jul 22 2025 | 2025 Q2 | - | - | - | - |
| Apr 23 2025 | 2025 Q1 | - | - | - | - |
| Jan 1 2025 | 2024 Q4 | - | - | - | - |
| Oct 1 2024 | 2024 Q3 | - | - | - | - |
| Jul 1 2024 | 2024 Q2 | - | - | - | - |
| Apr 1 2024 | 2024 Q1 | - | - | - | - |
| 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 |
HealthcareHealthcare was the strongest relative contributor in the quarter with holdings increasing nearly +16% compared to benchmark returns of roughly +12%. Exact Sciences was acquired for a significant premium by Abbott Laboratories resulting in an +86% return, while other strong performers included Tarsus Pharmaceuticals, Glaukos following approval of a new product, Penumbra, and Repligen driven by strong earnings results. |
M&A Product Approval Earnings Biotech | |
Technology |
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ValuationsEquity valuations remain elevated with the S&P 500 trading near 23x forward earnings, well above its long-term average of 15.6x. High valuations may increase market sensitivity to earnings disappointments and tend to constrain longer-term returns, reinforcing the importance of selectivity. |
Multiples Premium Earnings Risk Selectivity | |
| 2025 Q3 |
Momentum2025 was characterized by extreme momentum dynamics with capital flowing into immediate winners while perceived losers saw unprecedented pressure. Market leadership concentrated in lower-quality, speculative, and cyclically sensitive stocks. The momentum trade has been exceptionally profitable short-term but timing the inevitable reversal remains challenging. |
Cyclical Speculation Leadership Volatility Reversal |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| CSCO | It took Cisco, the leading provider of internet equipment and briefly the world's most valuable company, a quarter of a century and another technology bubble to regain its peak. |
| TGT | Target was sold during the quarter as it was not tracking to plan. |
| WMT | For insight into the real economy operating beneath this AI and data center boom, we must look elsewhere within the S&P 500, including bellwethers like Walmart |
| 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 | |||
