| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.4% | 1.3% | 13.0% |
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 13.0% | 30.7% | 35.2% | -17.3% |
Magellan Global Opportunities Fund delivered 1.3% in Q4 2025, bringing full-year returns to 13.0% and outperforming the MSCI World Index. The portfolio remains defensively positioned despite positive catalysts including Fed rate cuts and anticipated fiscal stimulus. Key contributors included Dollar General's operational improvements, Alphabet's AI leadership demonstration through strong search momentum and Gemini 3 launch, and Amazon's AWS acceleration. Detractors included Microsoft facing moderated AI optimism, SAP impacted by tariff uncertainty, and Meta's heavy investment cycle weighing on sentiment. The fund maintains focus on high-quality companies with sustainable competitive advantages, highlighted by detailed analysis of Nestlé's attractive positioning in coffee and pet care categories. Looking ahead, managers see mixed 2026 outlook with US economic tailwinds offset by elevated market valuations and geopolitical risks. The portfolio's emphasis on quality companies with pricing power and defensive characteristics positions it for potential market volatility while capturing long-term growth opportunities.
Invest in outstanding companies at attractive prices while exercising deep understanding of macroeconomic environment to manage investment risk, focusing on companies with sustainable competitive advantages and returns on capital exceeding cost of capital.
Mixed outlook for 2026 equity markets with US economy supported by fiscal policy, monetary policy and deregulation tailwinds, but markets entering at record highs with stretched valuations creating downside risk.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | AMT, AMZN, DEO, DG, ES, GOOGL, LLOY.L, MA, META, MSFT, NESN.SW, SAP, TSM, UNH, ZBH | AI, Cloud, Consumer Staples, global, large cap, Quality, technology | - | AI continues to drive market leadership with companies like Alphabet demonstrating ability to leverage full stack approach. Microsoft's positioning affected by shifting views on AI… |
| Sep 30 2025 | 2025 Q3 | - | - | - | - |
| 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 |
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 | |
CoffeeNestlé's coffee portfolio through Nescafé and Nespresso brands well-positioned to capture spending shifts across price points. Coffee viewed as attractive category due to experiential nature and brand loyalty, with Nestlé delivering positive volume growth despite high single-digit price increases. |
Coffee Beverages Consumer Staples Pricing Power Brand | |
E-commerceSeveral investments in e-commerce leaders across Asia and Latin America, including MercadoLibre, Sea Limited and Alibaba, faced a more competitive operating environment during the period. As long-term investors, SGA observes that competitive intensity in these markets tends to ebb and flow over shorter time horizons, with market leaders typically emerging from such periods with strengthened strategic positions given inherent network effects. |
Marketplaces Competition Network Effects Asia Latin America | |
Pet CareNestlé's Purina line offers products from premium to budget in attractive pet care category. Pet foods benefit from brand preferences and nutrition focus rather than just price, with scale advantages in R&D and feed trials driving innovation. |
Pet Food Consumer Staples Animal Health Premium Innovation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 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. |
| DEO | Examples include Tidewater, Valaris, Constellation Brands, Diageo and Trex. We have discussed TDW and VAL previously, as well as STZ and DEO here. |
| DG | Dollar General, the discount store chain, performed well in the quarter, as it delivered results ahead of market expectations and raised its guidance for 2026. Key to the investment case is improving profitability, and clear evidence of improvement in this area drove the share price gains. Dollar General announced 30% year-over-year operating profit growth, alongside 5% revenue growth, while also investing in store renovations and reducing its debt levels. We believe that with Todd Vasos back in charge and a proven playbook to execute, it can deliver steady revenue growth and margin gains over the long term. |
| 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. |
| LLOY.L | Lloyds Banking Group was among the rate-sensitive majors leading European banking sector outperformance. Sector returns have been underpinned by the stabilisation of short-term interest rates and a subsequent steepening of the European yield curve. |
| 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. |
| SAP | We trimmed SAP SE. |
| 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. |
| UNH | We also added back a full position in UnitedHealth |
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