The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Baillie Gifford's International Concentrated Growth strategy underperformed in Q2 2026 despite continued operational progress across portfolio holdings. MercadoLibre accelerated revenue growth to 49 percent through strategic reinvestment in commerce and financial services, capturing 60 cents of each incremental dollar in Brazilian e-commerce despite near-term margin pressure. Spotify grew operating profits 40 percent while developing AI-powered monetization features that leverage its unique behavioral data advantage. Semiconductor holdings TSMC and ASML benefited from AI-driven capital expenditure, manufacturing 90 percent of advanced chips and providing the only EUV lithography equipment essential for production. The team added three new positions: SK Hynix for high-bandwidth memory leadership, Lonza for biologics manufacturing exposure, and CATL for battery technology. These were funded by trimming strong performers TSMC, ASML, Delivery Hero, and Kering, while BioNTech was sold due to governance concerns. The team maintains conviction that exceptional businesses with structural opportunities, competitive moats, and adaptable leadership will compound value over time, viewing current lower valuations combined with operating progress as attractive for long-term returns.
The portfolio has materially underperformed over the past year, but the underlying businesses have continued to grow, gain share, and strengthen competitive positions, now available at meaningfully lower valuations—a combination the team believes precedes strong long-term returns.
The team expects the path forward will not be smooth but maintains conviction in their approach of identifying exceptional companies, owning them patiently, and giving operating excellence time to compound. They believe companies facing large structural opportunities with deep competitive moats and adaptable leaders can use AI and other technologies to get stronger rather than merely keep up. The combination of real operating progress at lower valuations is what tends to precede strong long-term returns.
As of Jul 23, 2026
Lead Portfolio Manager & CIO
Moderate Conviction Bullish
Market Conviction
The strategy is explicitly concentrated with named positions discussed in detail including specific operating metrics and thesis elements. The team provides precise data points (MercadoLibre capturing 60 cents of each incremental dollar, TSMC manufacturing 90 percent of advanced chips, Spotify growing operating profits 40 percent). They state clear views on management decisions and express willingness to hold through volatility. The letter names all major holdings with sizing implications (large semiconductor holdings, material detractor) and describes specific position additions and reductions. This level of specificity and concentration warrants a high conviction score, though not extreme given the diversified nature across multiple themes and geographies.
Growth Outlook
Market outlook remains above average conviction: Despite short-term Q4 performance headwinds driven by reinvestment costs at MercadoLibre and Sea Ltd, the fund remains deeply anchored in its high-conviction growth names, executin...
Risk Appetite
Risk appetite posture is high conviction: Despite short-term Q4 performance headwinds driven by reinvestment costs at MercadoLibre and Sea Ltd, the fund remains deeply anchored in its high-conviction growth names, executin...
Capital Deployment
The team added three new positions (SK Hynix, Lonza, CATL) during the quarter but funded these by trimming existing holdings (TSMC, ASML, Delivery Hero, Kering) and selling BioNTech entirely. This represents capital rotation rather than net deployment. No cash level changes are mentioned, and the activity described is balanced buying and selling. The rotation into new opportunities scores slightly positive but remains close to neutral given no evidence of net cash reduction or increased exposure.
Forward Guidance
Forward guidance signal: Despite short-term Q4 performance headwinds driven by reinvestment costs at MercadoLibre and Sea Ltd, the fund remains deeply anchored in its high-conviction growth names, executin...
Language Signal
The letter balances opportunity language (attractive, strengthening, compelling, exceptional, structural opportunities, competitive moats) with acknowledgment of challenges (underperformed, detracted, uncertainty, mistakes). Positive directional language around specific holdings and their operating progress outweighs the cautious framing around market dynamics. The net balance tilts positive but is not overwhelmingly bullish, reflecting a measured assessment of both progress and challenges.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Despite short-term Q4 performance headwinds driven by reinvestment costs at MercadoLibre and Sea Ltd, the fund remains deeply anchored in its high-conviction growth names, executin...
Opportunity Density
The team added three new holdings during the quarter across different sectors (semiconductors, biotechnology, batteries), indicating they are finding attractive opportunities. They describe large structural opportunities across AI infrastructure, biologics manufacturing, and battery technology. The letter emphasizes that underlying businesses are available at meaningfully lower valuations while continuing to strengthen, which they view as attractive. However, they also note the need for selectivity and discipline, suggesting opportunities are not abundant everywhere. The tone indicates a selective but reasonably rich opportunity set in specific areas.
Time Horizon
The team explicitly emphasizes patience and long-term compounding, stating they will own companies patiently and give operating excellence time to compound. They reference multi-year dynamics (MercadoLibre's structural opportunity, Spotify's two decades of data, TSMC's unassailable scale). The letter discusses credit card cohorts maturing over time and margins recovering on larger businesses, indicating multi-year thinking. However, they also discuss quarterly results and near-term catalysts like potential M&A for Delivery Hero. The horizon is clearly multi-year (2-5 years) rather than permanent capital, warranting a score in the 0.70-0.80 range.
Top Conviction Themes
Key Catalysts
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