Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Andrew Hill Investment Advisors delivered double-digit gains for the third consecutive year in 2025, matching benchmark returns amid a volatile environment characterized by tariff implementation, Federal Reserve rate cuts, and continued AI-driven market leadership. The year featured significant market disruption when tariffs ranging from 10-46% on major trading partners caused a historic selloff, though Treasury Secretary Bessent subsequently walked back the highest rates. Gold emerged as the top performer with 70% returns, outpacing both stocks and bonds as central banks accumulated the metal amid declining Dollar confidence. The firm has adopted a more defensive posture for 2026, positioning portfolios underweight equities and overweight fixed income given premium stock valuations and potentially peaking earnings growth. Key themes include the ongoing energy transition driven by AI data center demand, a shift from AI infrastructure builders to users, and growing concerns about the K-shaped economy where asset owners benefit while others face higher debt costs. The firm maintains Gold as a core 5% allocation while harvesting equity profits into laddered high-quality bonds.
After three years of strong stock market returns, future returns appear harder to come by with premium valuations and peaking earnings growth, leading to a more defensive positioning with underweight equities and overweight fixed income while maintaining core Gold holdings.
Expects more ups and downs in markets until new leadership emerges, with stocks potentially returning below the 10% long-term average. Economic growth forecast at 2% GDP with continued AI investment, lower short-term rates, falling oil prices, and ongoing geopolitical risk.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Dec 29 2025 | 2025 Q4 | CEG, GE, GEV | Allocation, gold, income, Macro, valuation |
GEV GE CEG |
The client letter reviews a volatile but resilient market environment shaped by tariffs, AI enthusiasm, moderating inflation, and shifting leadership across asset classes. Portfolio positioning emphasizes discipline, valuation awareness, and diversification, with increased focus on income, gold, and selective equity exposure as growth slows. Macro awareness is positioned as essential for navigating late-cycle dynamics and preserving capital. |
| Sep 24 2025 | 2025 Q3 | AMSC, COST, EQT, GE, GEV | AI, commodities, gold, interest rates, Trade | YETI | The manager emphasizes valuation discipline amid market concentration and speculative excess. Absolute valuation and cash-flow durability are prioritized over narrative-driven growth. Opportunities are found where pessimism has created mispriced quality businesses. |
| Jun 26 2025 | 2025 Q2 | - | diversification, gold, macro risk, Resilience, volatility | - | The letter reviews a volatile macro backdrop shaped by tariffs, geopolitics, and AI-driven market leadership. Management focuses on diversification, quality businesses, and alternative assets such as gold to manage risk. The outlook anticipates continued volatility with selective opportunity. |
| Mar 26 2025 | 2025 Q1 | AAPL, AMZN, DUK, GRMN, JNJ, JPM, MSFT, NFLX, PGR | - | - | |
| Dec 19 2024 | 2024 Q4 | AAPL, AMZN, ANET, CEG, GEV, GRMN, GS, JPM, MSFT, NVDA | - | - | |
| Sep 29 2024 | 2024 Q3 | - | - | - | |
| Jun 30 2024 | 2024 Q2 | AAPL, AMZN, ISRG, JNJ, LLY, MSFT, NVDA | - | - | |
| Apr 10 2024 | 2024 Q1 | - | - | - | |
| Dec 31 2023 | 2023 Q4 | - | - | - | |
| Sep 30 2023 | 2023 Q3 | CARR, DE, EQT, NVDA, OKE | - | - | |
| Jun 26 2023 | 2023 Q2 | - | - | - | |
| Mar 24 2023 | 2023 Q1 | AAPL, ANET, DE, GRMN, LECO, MRK, MSFT, ULTA, V, VRTX | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
CommoditiesBull market may be in early stages with most commodities 46% below nominal peaks and 73% below inflation-adjusted highs. Commodity-to-equity ratio near historic lows suggests capital starvation. Current cycle appears only one-third complete compared to historical precedent. |
Cycles Capital Valuation Equities | |
RatesFederal Reserve resumed rate-cutting cycle with first cut since December 2024, signaling resumption of easing. Expected three cuts of 25bps between now and first quarter 2026 as Fed responds to signs of weakness in US labor market. |
Fed Monetary Policy Labor Market Easing Liquidity | |
Trade |
||
| 2025 Q2 |
VolatilityManager emphasizes volatility as a structural feature of markets, noting that rare events occur far more frequently than expected. April's volatility event validated their convexity approach, with systematic monetization during stress periods. December saw compressed volatility with VIX hitting year lows, creating buying opportunities despite short-term costs. |
VIX Implied Volatility Realized Volatility Convexity Options |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Dec 29, 2025 | Fund Letters | Andrew D.W. Hill | CEG | Constellation Energy Corporation | Utilities | Electric Utilities | Bull | NASDAQ | Electrification, Nuclear, Power, Pricing, utilities | Login |
| Sep 24, 2025 | Fund Letters | Andrew D.W. Hill | YETI | YETI Holdings Inc. | Consumer Discretionary | Leisure Products | Bull | NYSE | Brand, consumer, growth, Lifestyle, Outdoors, retail, small-cap | Login |
| Dec 29, 2025 | Fund Letters | Andrew D.W. Hill | GEV | GE Vernova Inc. | Industrials | Renewable Electricity | Bull | New York Stock Exchange | backlog, Electrification, Grid, Margins, renewables | Login |
| Dec 29, 2025 | Fund Letters | Andrew D.W. Hill | GE | GE Aerospace | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, aftermarket, Aviation, cashflow, Engines | Login |
| TICKER | COMMENTARY |
|---|---|
| CEG | 3Q results were in line, and the company noted commercial activity was intensifying. A FERC ruling on co-location was viewed as a positive for Independent Power Producer (IPP) development. CEG also benefited from the PJM Interconnection capacity auction in which pricing came in at the top of the collar range. |
| GE | 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 General Electric |
| GEV | The massive data center buildout is leading to a surge in demand for alternative and traditional energy generation, which led Jennison to add GE Vernova to the Fund's Industrials sector. Their natural gas turbine, wind, and electrification businesses, along with a rapidly growing and profitable services backlog, should support strong growth for the next several years. |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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