City Different Investments - Multi-Cap Core

Investor Summary

The Multi-Cap Core strategy is managed by Rob MacDonald, CFA, and Connor Browne, CFA, who collectively bring extensive institutional investment experience having previously managed over $35 billion in assets. Rob MacDonald brings experience from Thornburg Investment Management and Putnam Investments, holding an MBA from The University of Chicago Booth School of Business and a BA in Economics and Computer Science from Amherst College. Connor Browne serves as Founder & CEO of City Different Investments. The management team demonstrates expertise in fundamental analysis and long-term value investing, with a track record of detailed investment research and commentary. Their approach emphasizes conviction-based investing with willingness to take concentrated positions in situations where fundamental analysis supports significant upside potential. The team maintains transparency through detailed quarterly letters and direct client communication, embodying their partnership-oriented philosophy. Since the strategy's inception on June 1, 2021, the managers have demonstrated their commitment to long-term investing while navigating various market conditions.

Fund Strategy

City Different Investments emphasizes a long-term investment approach focused on generating strong risk-adjusted returns through a concentrated portfolio of stocks invested across the business life cycle. The firm operates under four core principles: treating clients as partners with direct access to portfolio managers, maintaining a culture of respect and collaboration, embracing freedom and responsibility, and committing to long-term value creation. The Multi-Cap Core strategy takes a longer view, enabled by strong client partnerships, focusing on long-term business fundamentals rather than short-term market noise. Portfolios typically hold 20-35 positions with no single position exceeding 10% at purchase, balanced across emerging, established, and mature businesses to minimize factor bets while maintaining diversification. The approach allows for international exposure up to 25% of assets and emphasizes fundamental analysis over short-term trading opportunities.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
8.29%	-2.18%	-2.18%

Executive Summary

City Different Investments' Multi-Cap Core strategy outperformed the S&P 500 by roughly 2% during a challenging first quarter, driven primarily by strong performance in Energy positions and Mature (Value) businesses. Valaris and Golar LNG were top contributors as energy equities rallied following geopolitical events in Iran. The strategy's diversified approach across business life cycles proved beneficial, with Mature holdings generating approximately 10% returns while the broader market declined. However, Established holdings including Microsoft, Thermo Fisher, Meta, and Alphabet were significant detractors, giving back gains from strong 2025 performance. Manager Rob MacDonald emphasizes maintaining a disciplined, fundamental analysis approach despite recent market preference for momentum-driven strategies. The strategy continues to focus on business owner mentality, staying within competence circles, and estimating long-term earnings power rather than chasing market excitement. Three-year performance remains ahead of the S&P 500, demonstrating the value of patient, diversified stock selection across sectors and market capitalizations.

Forward Outlook

The manager remains committed to a process-driven approach focused on studying businesses, understanding industry structure, and estimating long-term earnings power. While acknowledging that this approach may not always align with market preferences, they believe it provides the best chance of compounding capital over the long term.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
May 8 2026	2026 Q1	FLEX, GILD, GLNG, GOOGL, META, MSFT, NOMD, TMO, VAL	energy, fundamentals, long-term, multi-cap, value	-	City Different's Multi-Cap Core outperformed during Q1 2026's market decline, driven by strong Energy positions (Valaris, Golar LNG) and value-oriented holdings. While established tech names detracted, the strategy's fundamental approach and diversification across business life cycles delivered results. Manager maintains discipline despite market preference for momentum strategies, focusing on long-term value creation.
Feb 22 2026	2025 Q4	AMG, APG, CHTR, FLYW, GILD, GOOGL, KMX, LOPE, META, MSFT, NFLX, SBUX, SCHW, TGT, TMO	Behavioral, Diversified, long-term, multi-cap, value	FLYW	City Different's Multi-Cap Core strategy modestly outperformed in Q4 with Mature (Value) businesses driving returns through strong free cash flow generation. Three-year performance of 22.61% annualized nearly matches the S&P 500 despite since-inception underperformance. The manager trimmed underperforming positions while maintaining diversified exposure across business life cycles and market caps for long-term outperformance potential.
Sep 30 2025	2025 Q3	AMG, CHTR, DOCN, FLEX, GOOGL, KMX, LOPE, NFLX, NOMD, TGT, TMO	long-term, multi-cap, Research, stock selection, value	-	City Different's Multi-Cap Core strategy underperformed in Q3 due to avoiding speculative momentum names, but maintains strong three-year relative performance. The disciplined value approach focuses on research-intensive stock selection across market caps and business life cycles, with recent portfolio optimization through selling Digital Ocean and concentrating in higher conviction ideas.
Jun 30 2025	2025 Q2	1928.HK, 2282.HK, AIR.PA, ALD.AX, AZJ.AX, CABK.MC, CIP.AX, COL.AX, CS.AX, EDV.AX, FCX, FDV.AX, GMEXICOB.MX, HSBA.L, LLOY.L, MIN.AX, MSCI, NEE, NEM, NEX.PA, NST.AX, QUB.AX, SXS.L, TECK, WYNN	Banking, Casinos, commodities, Copper, global, gold, value	-	PM Capital outperformed with 10% quarterly returns driven by commodities exposure and European banking positions. Gold miners surged on record prices while copper benefited from supply disruptions. Macau gaming recovered strongly. The fund maintains contrarian positioning in undervalued sectors despite markets reaching new highs, viewing current megatrend discussions as lacking valuation discipline.
Mar 31 2025	2025 Q1	2282.HK, AIB.I, BIRG.I, CABK.MC, CGF.AX, CRN.AX, CSTCF, DGE.L, EDV.AX, FCX, FDV.AX, GQG.AX, HEIA.AS, INGA.AS, LLOY.L, NEM, RI.PA, SAN.PA, SHEL.L, SIE.DE, SPEC.L, TECK, WYNN	commodities, Decoupling, European Banks, gaming, Onshoring, tariffs, undervalued, value	-	PM Capital delivered 8.1% quarterly returns focusing on undervalued European banks and commodities. European banks trade at 8x earnings versus peers, positioned for infrastructure-driven recovery. Commodity holdings benefit from supply constraints and trade tensions. Key winners included AIB Group, Newmont, and Macau gaming stocks. Fund increased net invested position to 85% during April volatility, maintaining patient approach to multi-year themes.
Dec 31 2024	2024 Q4	-	Concentration, Fed policy, risk management, technology, valuation	-	Peak Asset Management navigates elevated S&P 500 valuations at 22.5x forward earnings and significant Technology sector concentration while taking a contrarian view on widespread AI bubble fears. The firm focuses on risk management and selective opportunities among underperformers rather than market timing, positioning for long-term rewards through disciplined diversification and investment selection.
Sep 30 2024	2024 Q3	BRK-A, EMR, PG	AI, dividends, tax policy, uncertainty, Valuations, value	-	Peak Asset Management navigates elevated market valuations with disciplined value approach, emphasizing dividend-paying stocks that have historically outperformed. Despite S&P 500's 6% YTD gain, few value opportunities exist with quality names trading at premium multiples. AI investment, tax policy clarity, and defense spending support current valuations amid political uncertainty.
Jun 30 2024	2024 Q2	-	asset allocation, tariffs, Trade Policy, uncertainty, volatility	-	Peak Asset Management navigates Q1 2025 market volatility driven by Trump administration tariff policies. After February highs, stocks declined as trade uncertainty emerged, culminating in Liberation Day market disruption. The firm maintains disciplined asset allocation approach, matching investments to client cash flow needs across time horizons while building conviction during turbulent periods.
Mar 31 2024	2024 Q1	AJG, AMD, BA, CR, NVDA, ORCL, TTAN, TYL	aerospace, AI, diversification, healthcare, insurance, software, valuation	CR AJG TYL TTAN	Sandhill navigates AI-driven market concentration by emphasizing diversification and valuation discipline. While questioning sustainability of massive AI infrastructure spending, the firm finds opportunities in overlooked software and aerospace sectors. Recent additions include Crane, Arthur J. Gallagher, Tyler Technologies, and ServiceTitan. Manager remains cautious but opportunistic, focusing on quality amid elevated valuations.
Dec 31 2023	2023 Q4	-	active management, Cash, Quality, tariffs, Valuations, volatility	-	Sandhill successfully deployed cash during a 20% market correction, then trimmed positions as markets rebounded 25% to new highs. Their quality-focused active management approach capitalizes on volatility while maintaining caution about elevated valuations and macro uncertainties including inflation and tariffs. Strong corporate earnings adaptation and $2.48 billion in assets demonstrate continued execution.
Sep 30 2023	2023 Q3	ANET, JPM, TT	banks, Bonds, HVAC, Quality, tariffs, technology, value	JPM ANET 1102 TT	Sandhill capitalizes on tariff-induced market volatility by deploying above-average cash into quality names like JPM, ANET, and TT. Focus on low-leverage companies with strong balance sheets positioned to gain market share during uncertainty. Historical precedent suggests significant upside following extreme fear periods. Bonds providing portfolio stability with normalized rates.
Jun 30 2023	2023 Q2	-	diversification, Recession, risk management, tariffs, Trade Policy, volatility	-	Trade policy uncertainty drove significant market volatility in Q1 2025, with the S&P 500 declining 4.8% as tariff concerns shifted sentiment from optimism to recession fears. Diversified portfolios outperformed concentrated growth positions. The firm maintains balanced allocations while avoiding reactive changes, emphasizing long-term discipline over short-term market timing during this uncertain period.
Mar 31 2023	2023 Q1	AAPL, AMZN, AVGO, GOOGL, INTC, META, MSFT, NVDA, ORCL, TSLA	AI, China, Federal Reserve, gold, Magnificent 7, rates, technology, Valuations	-	AI infrastructure spending drives technology leadership while Federal Reserve easing supports markets despite elevated valuations at 40X Shiller P/E. Precious metals surge as portfolio insurance against fiscal irresponsibility. Chinese equities break out at attractive valuations. Portfolio positioned in US technology and physical metals while avoiding government bonds given structural supply/demand imbalances.
Dec 31 2022	2022 Q4	-	-	-
Sep 30 2022	2022 Q3	-	-	-
Sep 30 2022	2022 Q3	-	-	-
Jun 30 2022	2022 Q2	-	-	-
Jun 30 2022	2022 Q2	-	-	-
Mar 31 2022	2022 Q1	-	-	-

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

May 8 2026

2026 Q1

FLEX, GILD, GLNG, GOOGL, META, MSFT, NOMD, TMO, VAL

energy, fundamentals, long-term, multi-cap, value

City Different's Multi-Cap Core outperformed during Q1 2026's market decline, driven by strong Energy positions (Valaris, Golar LNG) and value-oriented holdings. While established tech names detracted, the strategy's fundamental approach and diversification across business life cycles delivered results. Manager maintains discipline despite market preference for momentum strategies, focusing on long-term value creation.

Feb 22 2026

2025 Q4

AMG, APG, CHTR, FLYW, GILD, GOOGL, KMX, LOPE, META, MSFT, NFLX, SBUX, SCHW, TGT, TMO

Behavioral, Diversified, long-term, multi-cap, value

FLYW

City Different's Multi-Cap Core strategy modestly outperformed in Q4 with Mature (Value) businesses driving returns through strong free cash flow generation. Three-year performance of 22.61% annualized nearly matches the S&P 500 despite since-inception underperformance. The manager trimmed underperforming positions while maintaining diversified exposure across business life cycles and market caps for long-term outperformance potential.

Sep 30 2025

2025 Q3

AMG, CHTR, DOCN, FLEX, GOOGL, KMX, LOPE, NFLX, NOMD, TGT, TMO

long-term, multi-cap, Research, stock selection, value

City Different's Multi-Cap Core strategy underperformed in Q3 due to avoiding speculative momentum names, but maintains strong three-year relative performance. The disciplined value approach focuses on research-intensive stock selection across market caps and business life cycles, with recent portfolio optimization through selling Digital Ocean and concentrating in higher conviction ideas.

Jun 30 2025

2025 Q2

1928.HK, 2282.HK, AIR.PA, ALD.AX, AZJ.AX, CABK.MC, CIP.AX, COL.AX, CS.AX, EDV.AX, FCX, FDV.AX, GMEXICOB.MX, HSBA.L, LLOY.L, MIN.AX, MSCI, NEE, NEM, NEX.PA, NST.AX, QUB.AX, SXS.L, TECK, WYNN

Banking, Casinos, commodities, Copper, global, gold, value

PM Capital outperformed with 10% quarterly returns driven by commodities exposure and European banking positions. Gold miners surged on record prices while copper benefited from supply disruptions. Macau gaming recovered strongly. The fund maintains contrarian positioning in undervalued sectors despite markets reaching new highs, viewing current megatrend discussions as lacking valuation discipline.

Mar 31 2025

2025 Q1

2282.HK, AIB.I, BIRG.I, CABK.MC, CGF.AX, CRN.AX, CSTCF, DGE.L, EDV.AX, FCX, FDV.AX, GQG.AX, HEIA.AS, INGA.AS, LLOY.L, NEM, RI.PA, SAN.PA, SHEL.L, SIE.DE, SPEC.L, TECK, WYNN

commodities, Decoupling, European Banks, gaming, Onshoring, tariffs, undervalued, value

PM Capital delivered 8.1% quarterly returns focusing on undervalued European banks and commodities. European banks trade at 8x earnings versus peers, positioned for infrastructure-driven recovery. Commodity holdings benefit from supply constraints and trade tensions. Key winners included AIB Group, Newmont, and Macau gaming stocks. Fund increased net invested position to 85% during April volatility, maintaining patient approach to multi-year themes.

Dec 31 2024

2024 Q4

Concentration, Fed policy, risk management, technology, valuation

Peak Asset Management navigates elevated S&P 500 valuations at 22.5x forward earnings and significant Technology sector concentration while taking a contrarian view on widespread AI bubble fears. The firm focuses on risk management and selective opportunities among underperformers rather than market timing, positioning for long-term rewards through disciplined diversification and investment selection.

Sep 30 2024

2024 Q3

BRK-A, EMR, PG

AI, dividends, tax policy, uncertainty, Valuations, value

Peak Asset Management navigates elevated market valuations with disciplined value approach, emphasizing dividend-paying stocks that have historically outperformed. Despite S&P 500's 6% YTD gain, few value opportunities exist with quality names trading at premium multiples. AI investment, tax policy clarity, and defense spending support current valuations amid political uncertainty.

Jun 30 2024

2024 Q2

asset allocation, tariffs, Trade Policy, uncertainty, volatility

Peak Asset Management navigates Q1 2025 market volatility driven by Trump administration tariff policies. After February highs, stocks declined as trade uncertainty emerged, culminating in Liberation Day market disruption. The firm maintains disciplined asset allocation approach, matching investments to client cash flow needs across time horizons while building conviction during turbulent periods.

Mar 31 2024

2024 Q1

AJG, AMD, BA, CR, NVDA, ORCL, TTAN, TYL

aerospace, AI, diversification, healthcare, insurance, software, valuation

CR
AJG
TYL
TTAN

Sandhill navigates AI-driven market concentration by emphasizing diversification and valuation discipline. While questioning sustainability of massive AI infrastructure spending, the firm finds opportunities in overlooked software and aerospace sectors. Recent additions include Crane, Arthur J. Gallagher, Tyler Technologies, and ServiceTitan. Manager remains cautious but opportunistic, focusing on quality amid elevated valuations.

Dec 31 2023

2023 Q4

active management, Cash, Quality, tariffs, Valuations, volatility

Sandhill successfully deployed cash during a 20% market correction, then trimmed positions as markets rebounded 25% to new highs. Their quality-focused active management approach capitalizes on volatility while maintaining caution about elevated valuations and macro uncertainties including inflation and tariffs. Strong corporate earnings adaptation and $2.48 billion in assets demonstrate continued execution.

Sep 30 2023

2023 Q3

ANET, JPM, TT

banks, Bonds, HVAC, Quality, tariffs, technology, value

JPM
ANET
1102 TT

Sandhill capitalizes on tariff-induced market volatility by deploying above-average cash into quality names like JPM, ANET, and TT. Focus on low-leverage companies with strong balance sheets positioned to gain market share during uncertainty. Historical precedent suggests significant upside following extreme fear periods. Bonds providing portfolio stability with normalized rates.

Jun 30 2023

2023 Q2

diversification, Recession, risk management, tariffs, Trade Policy, volatility

Trade policy uncertainty drove significant market volatility in Q1 2025, with the S&P 500 declining 4.8% as tariff concerns shifted sentiment from optimism to recession fears. Diversified portfolios outperformed concentrated growth positions. The firm maintains balanced allocations while avoiding reactive changes, emphasizing long-term discipline over short-term market timing during this uncertain period.

Mar 31 2023

2023 Q1

AAPL, AMZN, AVGO, GOOGL, INTC, META, MSFT, NVDA, ORCL, TSLA

AI, China, Federal Reserve, gold, Magnificent 7, rates, technology, Valuations

AI infrastructure spending drives technology leadership while Federal Reserve easing supports markets despite elevated valuations at 40X Shiller P/E. Precious metals surge as portfolio insurance against fiscal irresponsibility. Chinese equities break out at attractive valuations. Portfolio positioned in US technology and physical metals while avoiding government bonds given structural supply/demand imbalances.

Dec 31 2022

Sep 30 2022

Sep 30 2022

Jun 30 2022

Jun 30 2022

Mar 31 2022

QUARTER	THEMES	TAGS
2026 Q1	Energy Energy positions were the standout performers during the quarter, with Valaris and Golar LNG being the top two contributors as oil and LNG-linked equities rallied sharply following the war in Iran. Energy provided meaningful selection effect versus the benchmark.	Oil LNG Drilling Energy Trading
	Value Mature (Value) businesses did the heavy lifting during the quarter, generating roughly 10% returns in a down market. The strategy's value-oriented approach continues to be central to the investment philosophy, focusing on what businesses are worth rather than market excitement.	Value Mature Fundamentals
2025 Q4	Behavioral Finance Manager discusses behavioral biases in investing, comparing rational 'Morning Investor' mode to impulsive 'Nighttime Investor' decisions. Emphasizes the importance of overcoming psychological biases like avoiding action that could cause regret, and building habits to make better investment decisions.	Behavioral Biases Psychology Decision Making
2025 Q3	Value The manager employs a disciplined value-oriented approach, comparing investing to thrift shopping where they search for undervalued opportunities. The process involves extensive research to find businesses trading below intrinsic value, with most ideas failing to survive deep analysis.	Value Investing Undervalued Intrinsic Value Deep Research Disciplined
2025 Q2	Copper Fund maintains heavy exposure to copper producers including Teck Resources, Freeport-McMoRan, and Grupo Mexico. Copper prices rose 5% in September following supply disruptions at major mines. The Grasberg mine accident significantly reduced output and shifted market expectations from surplus to deficit heading into 2026.	Copper Miners Supply Disruption Deficit Industrial Metals Mining
	Gold Gold positions benefited from 17% price rise to all-time high of US$3,873. Newmont gained 45% while Northern Star rallied 26%. Despite record gold prices, investor ownership of gold equities remains low, with valuations still attractive and capital returns competitive relative to broader market.	Gold Miners Record Prices Undervalued Capital Returns Low Ownership
	Banking European banks delivered strong results with steeper yield curve and growing confidence in infrastructure and defense spending driving economic activity. Caixabank rose 22% yet trades below 11 times earnings, with plans for €12bn shareholder returns equivalent to 20% of market cap.	European Banks Yield Curve Infrastructure Shareholder Returns Undervalued
	Casinos Macau recovery accelerated with Wynn Resorts, Sands China and MGM China all up more than 30%. Industry-wide entertainment revenue growth has accelerated through the year, driving renewed investor optimism after period of weak sentiment amid China's slowing economy and tariff uncertainty.	Macau Recovery Entertainment China Gaming
	Value PM Capital's approach focuses on investing in quality businesses at bottom-quartile valuations and selling at top-quartile valuations. This process often takes years to unfold. Portfolio remains positioned very differently from broader market in areas with valuation support.	Bottom-quartile Quality Long-term Contrarian Discipline
2025 Q1	European Banks European banks are significantly undervalued relative to US and Australian peers, trading at circa 8x earnings. Rising infrastructure and defense spending in Europe could stimulate industrial activity and credit demand, supporting a recovery that could take years to play out fully.	Banking Europe Valuation Credit Infrastructure
	Commodities Underinvestment in resource projects will constrain commodity supply, supporting higher metal prices. President Trump is using commodities as bargaining chips for trade concessions, creating artificial barriers to supply that coincide with decades of global underinvestment and new demand from renewable transition.	Copper Gold Supply Trade Policy Renewables
	Onshoring The Great Decoupling between US and China on trade, technology and finance is encouraging multinationals to increase manufacturing at home. President Trump's tariff policies could accelerate global reshoring as companies increase local production to avoid import tariffs.	Manufacturing Trade Policy Supply Chain Automation Tariffs
	Gaming Macau casinos faced pressure from US tariff concerns but rebounded in June driven by improved gaming data and tourism recovery. Gaming positions provided positive contributions with MGM China rising 23% and Wynn Resorts gaining 12% during the quarter.	Macau Tourism Recovery China Entertainment
2024 Q4	AI The letter opens with discussion of AI bubble fears, noting that Google Search index for AI bubble rose from zero to 100 in mid-September to October. The manager takes a contrarian view that widespread bubble fears may actually indicate the market is not in a bubble.	Bubble Technology Valuation
2024 Q3	Dividends Manager emphasizes the importance of dividend-paying stocks, noting that over the last 50 years dividend payers in the S&P 500 returned 9.2% annually versus 4.3% for non-payers. Companies that pay dividends demonstrate consistent profitability and judicious cash management.	Dividend Yield Cash Management Profitability Income
	AI Artificial intelligence is identified as one of the key drivers supporting current market valuations. The manager notes huge amounts of corporate investment in building data centers and research and development in AI as a countervailing force keeping markets fully valued.	Data Centers Corporate Investment R&D Technology
2024 Q2	Trade Policy The Trump administration implemented tariffs on Canada, Mexico and China on February 1st as pressure to stop Fentanyl flow. Liberation Day on April 2nd launched broader tariffs that spooked investors and caused a three-day mini-crash. A ninety-day pause on reciprocal tariffs for seventy-plus countries was announced April 9th.	Tariffs Trade War China Liberation Day Fentanyl
	Volatility The manager expected significant volatility in 2025 after two consecutive 20%+ years. The S&P 500 hit all-time highs in February then declined into negative territory. Double-digit pullbacks are described as fairly regular occurrences even in bull markets.	Market Swings Pullbacks Bull Markets Uncertainty
2024 Q1	AI AI capital expenditure boom continues driving market concentration with eight companies representing 38% of S&P 500. Manager questions sustainability of $3-4 trillion annual data center spending projections by 2030, citing concerns about economic viability and energy infrastructure bottlenecks.	Data Centers Semiconductors Cloud Energy Nvidia
	Software Manager sees opportunity in software sector where sentiment has turned overly pessimistic amid AI displacement fears. Added to Tyler Technologies and initiated ServiceTitan position, viewing these as companies that can leverage AI rather than be displaced by it.	SaaS Government Automation Productivity
	Aerospace Boeing increasing near-term production schedule with massive backlog for both Boeing and Airbus aircraft. Added to Crane position to benefit from this long-term secular trend in aerospace division growth.	Defense Manufacturing Backlog
2023 Q4	Quality Manager emphasizes owning quality assets with strong management teams, low debt levels, healthy cash flows, and exposure to long-term secular growth trends. These companies tend to outperform over time and press their advantage during economic downturns.	Quality Cash Flows Management Growth
	Volatility The letter describes a volatile year with a 20% correction followed by a 25% rebound, marking the second-fastest recovery from bear market to new highs in 75 years. Manager views volatility as opportunity for active management.	Volatility Bear Market Correction Rebound
2023 Q3	Trade Policy Newly announced U.S. tariffs on the rest of the world are creating market instability and uncertainty. These tariffs will increase costs to corporations and consumers, dampen demand, and push the global economy toward recession if they remain in place.	Tariffs Trade Policy Uncertainty Recession
	Data Centers Arista Networks is benefiting from continued growth due to acceleration in AI-related data center spend. The company has been taking share in its core markets for years as a leading provider of data center networking and switching equipment.	AI Networking Infrastructure Growth
	HVAC Trane Technologies operates in the HVAC industry which continues to benefit from long-term structural demand driven by rising global temperatures, improved indoor air quality standards, and a growing push for energy efficiency.	Climate Efficiency Infrastructure Structural
2023 Q2	Trade Policy The administration's trade policies and tariff implementation created significant market uncertainty. The scope of Liberation Day tariffs was a negative surprise, representing a carpet bombing approach rather than targeted reciprocal tariffs. The potential for stagflation complicates Fed policy and increases recession risks.	Tariffs Stagflation Recession Policy Uncertainty
	Volatility Markets experienced substantial volatility with the S&P 500 dropping 4.8% in Q1 and retreating 13.5% year-to-date by April 7th. The Mag 7 stocks declined sharply while diversified portfolios found refuge in value and international stocks. Gold surged 19% on policy concerns.	Market Decline Diversification Gold Refuge
	Risk Appetite Investor risk appetite shifted dramatically from post-election optimism to concern about recession risks. Consumer confidence dropped sharply and inflation expectations rose. The firm advocates maintaining balanced portfolios and avoiding major shifts during volatile periods.	Confidence Recession Balance Positioning Patience
2023 Q1	AI AI fever has gripped markets with the Magnificent 7 recapturing leadership. Nvidia delivered $47 billion revenue with 56% growth, describing AI infrastructure as entering a new industrial revolution. An estimated $350 billion this year and $400 billion next year will be spent on AI-related equipment by major US technology companies.	Artificial Intelligence Data Centers Semiconductors Cloud Technology
	Gold Physical gold and miners delivered phenomenal returns with gold returning over 19% and mining stocks nearly 50%. Central banks continue accumulating gold as marginal buyers, while ETF inflows signal institutional money joining the party. Gold serves as essential portfolio insurance against long-term dollar debasement.	Gold Miners Precious Metals Central Banks Dollar Debasement Portfolio Insurance
	Rates Federal Reserve delivered a 25 basis point rate cut with Powell describing it as risk management to forestall labor market weakness. Money markets price two more quarter point cuts this year. The decision came despite Trump administration pressure for more aggressive easing.	Federal Reserve Interest Rates Monetary Policy Rate Cuts Labor Market
	China Chinese equities broke out to decade-plus highs with Shanghai Index returning 15.7%. Chinese internet companies trade at substantial discount to American counterparts while corporate earnings continue inflecting upwards. China's growing competitiveness in high-tech sectors including EVs, batteries, robots and automation is underappreciated.	Chinese Equities Internet Technology Valuation Discount High-tech

QUARTER

THEMES

Energy

Energy positions were the standout performers during the quarter, with Valaris and Golar LNG being the top two contributors as oil and LNG-linked equities rallied sharply following the war in Iran. Energy provided meaningful selection effect versus the benchmark.

Oil LNG Drilling Energy Trading

Value

Mature (Value) businesses did the heavy lifting during the quarter, generating roughly 10% returns in a down market. The strategy's value-oriented approach continues to be central to the investment philosophy, focusing on what businesses are worth rather than market excitement.

Value Mature Fundamentals

2025 Q4

Behavioral Finance

Manager discusses behavioral biases in investing, comparing rational 'Morning Investor' mode to impulsive 'Nighttime Investor' decisions. Emphasizes the importance of overcoming psychological biases like avoiding action that could cause regret, and building habits to make better investment decisions.

Behavioral Biases Psychology Decision Making

2025 Q3

Value

The manager employs a disciplined value-oriented approach, comparing investing to thrift shopping where they search for undervalued opportunities. The process involves extensive research to find businesses trading below intrinsic value, with most ideas failing to survive deep analysis.

Value Investing Undervalued Intrinsic Value Deep Research Disciplined

2025 Q2

Copper

Fund maintains heavy exposure to copper producers including Teck Resources, Freeport-McMoRan, and Grupo Mexico. Copper prices rose 5% in September following supply disruptions at major mines. The Grasberg mine accident significantly reduced output and shifted market expectations from surplus to deficit heading into 2026.

Copper Miners Supply Disruption Deficit Industrial Metals Mining

Gold

Gold positions benefited from 17% price rise to all-time high of US$3,873. Newmont gained 45% while Northern Star rallied 26%. Despite record gold prices, investor ownership of gold equities remains low, with valuations still attractive and capital returns competitive relative to broader market.

Gold Miners Record Prices Undervalued Capital Returns Low Ownership

Banking

European banks delivered strong results with steeper yield curve and growing confidence in infrastructure and defense spending driving economic activity. Caixabank rose 22% yet trades below 11 times earnings, with plans for €12bn shareholder returns equivalent to 20% of market cap.

European Banks Yield Curve Infrastructure Shareholder Returns Undervalued

Casinos

Macau recovery accelerated with Wynn Resorts, Sands China and MGM China all up more than 30%. Industry-wide entertainment revenue growth has accelerated through the year, driving renewed investor optimism after period of weak sentiment amid China's slowing economy and tariff uncertainty.

Macau Recovery Entertainment China Gaming

Value

PM Capital's approach focuses on investing in quality businesses at bottom-quartile valuations and selling at top-quartile valuations. This process often takes years to unfold. Portfolio remains positioned very differently from broader market in areas with valuation support.

Bottom-quartile Quality Long-term Contrarian Discipline

2025 Q1

European Banks

European banks are significantly undervalued relative to US and Australian peers, trading at circa 8x earnings. Rising infrastructure and defense spending in Europe could stimulate industrial activity and credit demand, supporting a recovery that could take years to play out fully.

Banking Europe Valuation Credit Infrastructure

Commodities

Underinvestment in resource projects will constrain commodity supply, supporting higher metal prices. President Trump is using commodities as bargaining chips for trade concessions, creating artificial barriers to supply that coincide with decades of global underinvestment and new demand from renewable transition.

Copper Gold Supply Trade Policy Renewables

Onshoring

The Great Decoupling between US and China on trade, technology and finance is encouraging multinationals to increase manufacturing at home. President Trump's tariff policies could accelerate global reshoring as companies increase local production to avoid import tariffs.

Manufacturing Trade Policy Supply Chain Automation Tariffs

Gaming

Macau casinos faced pressure from US tariff concerns but rebounded in June driven by improved gaming data and tourism recovery. Gaming positions provided positive contributions with MGM China rising 23% and Wynn Resorts gaining 12% during the quarter.

Macau Tourism Recovery China Entertainment

2024 Q4

AI

The letter opens with discussion of AI bubble fears, noting that Google Search index for AI bubble rose from zero to 100 in mid-September to October. The manager takes a contrarian view that widespread bubble fears may actually indicate the market is not in a bubble.

Bubble Technology Valuation

2024 Q3

Dividends

Manager emphasizes the importance of dividend-paying stocks, noting that over the last 50 years dividend payers in the S&P 500 returned 9.2% annually versus 4.3% for non-payers. Companies that pay dividends demonstrate consistent profitability and judicious cash management.

Dividend Yield Cash Management Profitability Income

AI

Artificial intelligence is identified as one of the key drivers supporting current market valuations. The manager notes huge amounts of corporate investment in building data centers and research and development in AI as a countervailing force keeping markets fully valued.

Data Centers Corporate Investment R&D Technology

2024 Q2

Trade Policy

The Trump administration implemented tariffs on Canada, Mexico and China on February 1st as pressure to stop Fentanyl flow. Liberation Day on April 2nd launched broader tariffs that spooked investors and caused a three-day mini-crash. A ninety-day pause on reciprocal tariffs for seventy-plus countries was announced April 9th.

Tariffs Trade War China Liberation Day Fentanyl

Volatility

The manager expected significant volatility in 2025 after two consecutive 20%+ years. The S&P 500 hit all-time highs in February then declined into negative territory. Double-digit pullbacks are described as fairly regular occurrences even in bull markets.

Market Swings Pullbacks Bull Markets Uncertainty

2024 Q1

AI

AI capital expenditure boom continues driving market concentration with eight companies representing 38% of S&P 500. Manager questions sustainability of $3-4 trillion annual data center spending projections by 2030, citing concerns about economic viability and energy infrastructure bottlenecks.

Data Centers Semiconductors Cloud Energy Nvidia

Software

Manager sees opportunity in software sector where sentiment has turned overly pessimistic amid AI displacement fears. Added to Tyler Technologies and initiated ServiceTitan position, viewing these as companies that can leverage AI rather than be displaced by it.

SaaS Government Automation Productivity

Aerospace

Boeing increasing near-term production schedule with massive backlog for both Boeing and Airbus aircraft. Added to Crane position to benefit from this long-term secular trend in aerospace division growth.

Defense Manufacturing Backlog

2023 Q4

Quality

Manager emphasizes owning quality assets with strong management teams, low debt levels, healthy cash flows, and exposure to long-term secular growth trends. These companies tend to outperform over time and press their advantage during economic downturns.

Quality Cash Flows Management Growth

Volatility

The letter describes a volatile year with a 20% correction followed by a 25% rebound, marking the second-fastest recovery from bear market to new highs in 75 years. Manager views volatility as opportunity for active management.

Volatility Bear Market Correction Rebound

2023 Q3

Trade Policy

Newly announced U.S. tariffs on the rest of the world are creating market instability and uncertainty. These tariffs will increase costs to corporations and consumers, dampen demand, and push the global economy toward recession if they remain in place.

Tariffs Trade Policy Uncertainty Recession

Data Centers

Arista Networks is benefiting from continued growth due to acceleration in AI-related data center spend. The company has been taking share in its core markets for years as a leading provider of data center networking and switching equipment.

AI Networking Infrastructure Growth

HVAC

Trane Technologies operates in the HVAC industry which continues to benefit from long-term structural demand driven by rising global temperatures, improved indoor air quality standards, and a growing push for energy efficiency.

Climate Efficiency Infrastructure Structural

2023 Q2

Trade Policy

The administration's trade policies and tariff implementation created significant market uncertainty. The scope of Liberation Day tariffs was a negative surprise, representing a carpet bombing approach rather than targeted reciprocal tariffs. The potential for stagflation complicates Fed policy and increases recession risks.

Tariffs Stagflation Recession Policy Uncertainty

Volatility

Markets experienced substantial volatility with the S&P 500 dropping 4.8% in Q1 and retreating 13.5% year-to-date by April 7th. The Mag 7 stocks declined sharply while diversified portfolios found refuge in value and international stocks. Gold surged 19% on policy concerns.

Market Decline Diversification Gold Refuge

Risk Appetite

Investor risk appetite shifted dramatically from post-election optimism to concern about recession risks. Consumer confidence dropped sharply and inflation expectations rose. The firm advocates maintaining balanced portfolios and avoiding major shifts during volatile periods.

Confidence Recession Balance Positioning Patience

2023 Q1

AI

AI fever has gripped markets with the Magnificent 7 recapturing leadership. Nvidia delivered $47 billion revenue with 56% growth, describing AI infrastructure as entering a new industrial revolution. An estimated $350 billion this year and $400 billion next year will be spent on AI-related equipment by major US technology companies.

Artificial Intelligence Data Centers Semiconductors Cloud Technology

Gold

Physical gold and miners delivered phenomenal returns with gold returning over 19% and mining stocks nearly 50%. Central banks continue accumulating gold as marginal buyers, while ETF inflows signal institutional money joining the party. Gold serves as essential portfolio insurance against long-term dollar debasement.

Gold Miners Precious Metals Central Banks Dollar Debasement Portfolio Insurance

Rates

Federal Reserve delivered a 25 basis point rate cut with Powell describing it as risk management to forestall labor market weakness. Money markets price two more quarter point cuts this year. The decision came despite Trump administration pressure for more aggressive easing.

Federal Reserve Interest Rates Monetary Policy Rate Cuts Labor Market

China

Chinese equities broke out to decade-plus highs with Shanghai Index returning 15.7%. Chinese internet companies trade at substantial discount to American counterparts while corporate earnings continue inflecting upwards. China's growing competitiveness in high-tech sectors including EVs, batteries, robots and automation is underappreciated.

Chinese Equities Internet Technology Valuation Discount High-tech

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Feb 22, 2026	Fund Letters	Rob MacDonald	FLYW	Flywire Corporation	Software & Services	Data Processing & Outsourced Services	Bull	NASDAQ	Crossborder, Education, network, Payments, platform, Receivables, Reconciliation, Software, Travel, Tuition	Login
Oct 1, 2025	Fund Letters	City Different Investments - Multi-Cap Core	CR	Crane Company	Industrials	Industrial Machinery	Bull	NYSE	Aerospace, Airbus, Aircraft Manufacturing, Boeing, Industrial technology, Production Ramp, secular growth	Login
Oct 1, 2025	Fund Letters	City Different Investments - Multi-Cap Core	AJG	Arthur J. Gallagher & Co.	Financials	Insurance Brokers	Bull	NYSE	acquisition, consolidation, earnings growth, financial services, Insurance Broker, Mid-market, Roll-up Strategy	Login
Oct 1, 2025	Fund Letters	City Different Investments - Multi-Cap Core	TTAN	ServiceTitan Inc.	Information Technology	Application Software	Bull	NASDAQ	AI integration, Cloud software, Digitization, Electrical, first-mover advantage, HVAC, Plumbing, Productivity Gains, Professionalization, Trades Industry	Login
Oct 1, 2025	Fund Letters	City Different Investments - Multi-Cap Core	TYL	Tyler Technologies Inc.	Information Technology	Application Software	Bull	NYSE	Defensive Software, Fragmented Market, government software, high switching costs, Local Government, Mission-Critical, Municipal Technology	Login
Apr 1, 2025	Fund Letters	City Different Investments - Multi-Cap Core	1102 TT	Trane Technologies	Industrials	Building Products	Bull	NYSE	Climate, Commercial, energy efficiency, HVAC, Industrial, Structural Demand, Sustainability	Login
Apr 1, 2025	Fund Letters	City Different Investments - Multi-Cap Core	JPM	J.P. Morgan	Financials	Banks	Bull	NYSE	Bank, financial services, large-cap, Market dislocation, Quality, Value, yield	Login
Apr 1, 2025	Fund Letters	City Different Investments - Multi-Cap Core	ANET	Arista Networks	Information Technology	Communications Equipment	Bull	NYSE	AI, Cloud computing, data center, growth, market share, Networking, technology	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Feb 22, 2026

Fund Letters

Rob MacDonald

FLYW

Flywire Corporation

Software & Services

Data Processing & Outsourced Services

Bull

NASDAQ

Crossborder, Education, network, Payments, platform, Receivables, Reconciliation, Software, Travel, Tuition

Oct 1, 2025

Fund Letters

City Different Investments - Multi-Cap Core

Crane Company

Industrials

Industrial Machinery

Bull

NYSE

Aerospace, Airbus, Aircraft Manufacturing, Boeing, Industrial technology, Production Ramp, secular growth

Oct 1, 2025

Fund Letters

City Different Investments - Multi-Cap Core

AJG

Arthur J. Gallagher & Co.

Financials

Insurance Brokers

Bull

NYSE

acquisition, consolidation, earnings growth, financial services, Insurance Broker, Mid-market, Roll-up Strategy

Oct 1, 2025

Fund Letters

City Different Investments - Multi-Cap Core

TTAN

ServiceTitan Inc.

Information Technology

Application Software

Bull

NASDAQ

AI integration, Cloud software, Digitization, Electrical, first-mover advantage, HVAC, Plumbing, Productivity Gains, Professionalization, Trades Industry

Oct 1, 2025

Fund Letters

City Different Investments - Multi-Cap Core

TYL

Tyler Technologies Inc.

Information Technology

Application Software

Bull

NYSE

Defensive Software, Fragmented Market, government software, high switching costs, Local Government, Mission-Critical, Municipal Technology

Apr 1, 2025

Fund Letters

City Different Investments - Multi-Cap Core

1102 TT

Trane Technologies

Industrials

Building Products

Bull

NYSE

Climate, Commercial, energy efficiency, HVAC, Industrial, Structural Demand, Sustainability

Apr 1, 2025

Fund Letters

City Different Investments - Multi-Cap Core

JPM

J.P. Morgan

Financials

Banks

Bull

NYSE

Bank, financial services, large-cap, Market dislocation, Quality, Value, yield

Apr 1, 2025

Fund Letters

City Different Investments - Multi-Cap Core

ANET

Arista Networks

Information Technology

Communications Equipment

Bull

NYSE

AI, Cloud computing, data center, growth, market share, Networking, technology

TICKER	COMMENTARY
VAL	Valaris was the top contributor to portfolio return as oil and LNG-linked equities rallied sharply in the wake of the war in Iran.
GLNG	Golar LNG was the second top contributor to portfolio return as oil and LNG-linked equities rallied sharply in the wake of the war in Iran.
GILD	Gilead Sciences was also a notable positive contributor.
MSFT	Microsoft was one of the top five individual detractors, coming from the Established holdings group. Several of these names had been strong contributors in 2025 and gave back some of those gains in the first quarter.
TMO	Thermo Fisher Scientific was one of the top five individual detractors, coming from the Established holdings group. Several of these names had been strong contributors in 2025 and gave back some of those gains in the first quarter.
NOMD	Nomad Foods was one of the top five individual detractors and the largest sector detractor in Consumer Staples where it underperformed.
META	Meta Platforms was one of the top five individual detractors, coming from the Established holdings group. Several of these names had been strong contributors in 2025 and gave back some of those gains in the first quarter.
GOOGL	Alphabet was one of the top five individual detractors, coming from the Established holdings group. Several of these names had been strong contributors in 2025 and gave back some of those gains in the first quarter.

TICKER

COMMENTARY

VAL

Valaris was the top contributor to portfolio return as oil and LNG-linked equities rallied sharply in the wake of the war in Iran.

GLNG

Golar LNG was the second top contributor to portfolio return as oil and LNG-linked equities rallied sharply in the wake of the war in Iran.

GILD

Gilead Sciences was also a notable positive contributor.

MSFT

Microsoft was one of the top five individual detractors, coming from the Established holdings group. Several of these names had been strong contributors in 2025 and gave back some of those gains in the first quarter.

TMO

Thermo Fisher Scientific was one of the top five individual detractors, coming from the Established holdings group. Several of these names had been strong contributors in 2025 and gave back some of those gains in the first quarter.

NOMD

Nomad Foods was one of the top five individual detractors and the largest sector detractor in Consumer Staples where it underperformed.

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Energy

Value

Behavioral Finance

Value

Copper

Gold

Banking

Casinos

Value

European Banks

Commodities

Onshoring

Gaming

AI

Dividends

AI

Trade Policy

Volatility

AI

Software

Aerospace

Quality

Volatility

Trade Policy

Data Centers

HVAC

Trade Policy

Volatility

Risk Appetite

AI

Gold

Rates

China

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Rob MacDonald Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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City Different Investments – Multi-Cap Core