Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7% | -11.1% | -11.1% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7% | -11.1% | -11.1% |
Bell Global Equities Fund declined 3.1% in March, underperforming the MSCI World ex-Australia Index by 0.6% as Middle East conflict escalation drove broad market volatility. The forced closure of the Strait of Hormuz sent crude oil to $120 per barrel, triggering inflation concerns and stagflation fears. The fund's structural Energy underweight was the primary performance headwind, while AI disruption narratives continued pressuring quality-oriented strategies with indiscriminate selling across perceived AI-exposed sectors. Portfolio activity remained elevated with new positions in TE Connectivity, Nomura Research Institute, and MercadoLibre, while Nike and Old Dominion Freight Line were sold due to deteriorating risk-reward profiles. Deutsche Boerse was a standout performer, benefiting from increased volatility driving trading volumes in its derivatives franchise. Despite near-term challenges, management sees improving opportunities across high-quality dislocated businesses and remains confident in their Quality at a Reasonable Price approach, believing current market dispersion will provide the foundation for stronger future returns.
Bell Asset Management maintains a Quality at a Reasonable Price approach focused on high-quality businesses with durable competitive positions, strong balance sheets and long-term growth potential, believing that periods of heightened market dispersion create attractive investment opportunities.
While the near-term path of markets remains uncertain, particularly given the evolving macro environment, the manager remains confident in the long-term merits of the Quality at a Reasonable Price approach. The portfolio is becoming progressively better positioned as the team leans into opportunities created by heightened dispersion. The manager sees an improving risk-reward profile across the portfolio and remains focused on disciplined execution to drive stronger outcomes over time.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 29 2026 | 2026 Q1 | 4307.T, BOOT, DB1.DE, MELI, NKE, ODFL, TEL | AI, energy, geopolitics, Global Equities, Quality, technology, volatility |
DB1.DE BOOT TEL 4307.T MELI |
Bell Global Equities underperformed in March as Middle East conflict drove oil to $120 and broad risk-off sentiment. AI disruption fears continued pressuring quality strategies despite fund's AI beneficiary holdings. Management actively repositioned portfolio, adding TE Connectivity and MercadoLibre while trimming Nike. Sees improving opportunity set in dislocated quality businesses despite near-term macro uncertainty. |
| Jan 23 2026 | 2025 Q4 | 3064.T, 6098.T, 8697.T, AAPL, ACN, AMZN, AUTO.L, AVGO, BOOT, GOOGL, GWW, JPM, LPLA, META, MSFT, NVDA, ODFL, SAP.DE, SNPS, TSCO, V | financials, Global Equities, industrials, QARP, Quality, technology |
ODFL TSCO GWW LPLA JKHY |
Bell's quality-focused global equity strategy underperformed in December as risk-on sentiment favored momentum over fundamentals. Despite challenging 2025 performance, the team maintains conviction in their QARP approach, citing compelling valuations across quality businesses and expecting a transition toward earnings-driven market leadership in 2026 that should favor their investment style. |
| Oct 14 2025 | 2025 Q3 | AAPL, AMZN, ASML, CNM, COLOB.CO, GOOGL, META, MMC, MSFT, NVDA, NVO, ORCL, PCTY, SAP.DE, SGE.L, SNPS, TER, TSM, V, WM | global, growth, Quality, semiconductors, technology, valuation |
ASML SGE WM |
Bell Global Equities Fund underperformed in September as quality investing faced headwinds from momentum-driven markets favoring speculation over fundamentals. ASML led gains on AI demand while new positions in Sage Group and Waste Management reflect opportunistic deployment into quality businesses at attractive valuations. Managers remain confident fundamentals will reassert themselves. |
| Jun 30 2025 | 2025 Q2 | 6146.T, AAPL, AIR.PA, AMD, AMZN, ANET, AON, AVGO, BF-B, BJ, CSCO, GOOGL, LULU, META, MSFT, NESN.SW, NVDA, NVO, ORCL, TSM | AI, Cloud, global, growth, Quality, semiconductors, technology |
ORCL 6146.T LULU BJ AIR.PA NFLX |
Bell Global Equities Fund delivered 1.8% returns in June, driven by Oracle's AI-cloud momentum and semiconductor strength. The fund added Airbus and BJ's Wholesale Club while taking profits on Netflix. Despite market exuberance concerns and geopolitical risks, the manager maintains conviction in quality-at-reasonable-price approach for medium-term outperformance. |
| Apr 30 2025 | 2025 Q1 | 4684.T, AAPL, ADP, AMZN, ASML, AUTO.L, AVGO, BJ, BNZL.L, DECK, EW, FI, GOOGL, ICLR, IT, META, MSFT, NVDA, NVO, OR.PA, PEP, RMV.L | Cloud, Global Equities, Quality, tariffs, technology, Trade Policy | - | Bell Global Equities Fund fell 2.0% in April amid tariff-driven volatility, underperforming by 0.2%. Strong contributors OBIC and Auto Trader Group benefited from defensive qualities and tariff protection. Bunzl faced operational headwinds but trades at attractive valuation. New positions in Deckers and Gartner capitalize on quality companies at discounted prices. Quality-focused strategy continues targeting resilient businesses. |
| Dec 31 2024 | 2024 Q4 | 0700.HK, AAPL, ADBE, AMZN, ANET, AVGO, BESI.AS, DEO, EL, FI, GOOGL, LULU, MSFT, NESN.SW, NESTE.HE, NVDA, NVO, PEP, RMS.PA, UNH | AI, Global Equities, Performance Attribution, Quality, small caps, technology |
GOOGL LULU UNH AVGO CLH |
Bell Global Equities Fund gained 20.2% in 2024 but lagged benchmark due to stock selection and lack of exposure to mega-cap momentum names. Manager sees attractive opportunities in undervalued small and mid-cap equities positioned for reversal in 2025, while maintaining quality-focused approach and watching for inflation risks that could challenge current market conditions. |
| Jun 30 2024 | 2024 Q2 | 3064.T, AAPL, ADBE, AMZN, CRDA.L, DEO, FI, GOOGL, MA, MSFT, NESN.SW, NESTE.HE, NKE, ORCL, POOL, QCOM, ROG.SW, ULTA, UNH, V | AI, global, Quality, software, technology, value |
ORCL ADBE NKE 4768.T |
Bell Global Equities Fund underperformed in June as narrow market leadership favored large-cap tech over the fund's quality-focused approach. Oracle and Adobe drove gains while Nike detracted on guidance concerns. The manager remains confident in the quality-at-reasonable-price strategy, adding new positions while maintaining valuation discipline despite current headwinds from momentum-driven markets. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIThe ongoing AI disruption narrative has been a key driver of market behavior, with periods of indiscriminate selling extending beyond pure software into adjacent sectors. The fund has exposure to AI beneficiaries including Teradyne, Fujikura, Hoya and Keysight Technologies, though relative outperformance from these holdings has been offset by valuation contraction elsewhere. The market's treatment of stocks with perceived AI competitive exposure has remained largely indiscriminate. |
Artificial Intelligence Technology Disruption Software Semiconductors |
QualityThe fund continues its Quality at a Reasonable Price approach despite challenging conditions for quality-oriented investing. The manager observes attractive dislocations across high-quality businesses with durable competitive positions, strong balance sheets and long-term growth potential. Periods of heightened dispersion and dislocation have historically provided the foundation for stronger future returns. |
Quality Value Fundamentals Balance Sheets Competitive Moats | |
EnergyEnergy was the only sector to generate positive returns during March amid the escalation of Middle East conflict. The forced closure of the Strait of Hormuz led to stranded shipments and supply shock concerns, with crude prices surging to approximately US$120 per barrel. The portfolio's structural underweight to Energy represented the most significant allocation headwind to relative performance. |
Oil Energy Geopolitics Supply Shock Commodities | |
GeopoliticsThe escalation of conflict in the Middle East was the key development driving market volatility, with tensions between Israel, the United States and Iran intensifying. The forced closure of the Strait of Hormuz proved most destabilizing given its critical importance for global oil supply. A tentative ceasefire was reached in early April, helping to stabilize sentiment. |
Middle East Conflict Iran Israel Risk | |
| 2025 Q4 |
AIMassive capex cycle linked to AI representing increasing cash flow from hyperscalers. Signs that AI adoption is flatlining with unclear use cases for profitability. Reliance on Magnificent 7 for equity market performance continues with credit markets becoming increasingly sensitive to AI companies. |
Artificial Intelligence Hyperscalers Capex Technology Valuations |
GoldExceptionally strong performance with gold returning 65% for 2025 and silver 148%. Trend has continued into 2026 with gold rising 13.3% and silver 18.9% by end of January. Extreme moves following very strong performance last year. |
Precious Metals Commodities Safe Haven Inflation Hedge | |
CreditCredit spreads remained tight at historic levels with returns mainly generated by carry. Four of the largest credit issuers in 2025 were hyperscalers. Under tight spreads surface, there is relatively high dispersion with significant refinancing requirements in 2026-2027. |
Credit Spreads Corporate Bonds Refinancing High Yield | |
GeopoliticalPresident Maduro taken from Venezuela, fracturing of Western alliance as Trump looked to acquire Greenland, protests in Iran violently suppressed. Despite these issues, markets have been somewhat benign. Tensions may make cross-border transactions more difficult. |
Geopolitics Venezuela Iran Trade Policy Risk | |
| 2025 Q3 |
QualityThe fund follows a Quality at a Reasonable Price investment approach, focusing on financially robust, well-managed companies with sustainable earnings growth. The current environment has been challenging for quality-focused investors, with the MSCI World Quality Index underperforming by around 9% over the past 12 months. |
Quality Valuation Fundamentals Earnings Growth |
AIASML benefited from renewed investor interest amid strong AI-related demand, with several analysts upgrading the stock. The company's technology moat remains intact and adoption of its next-generation high-NA EUV system could accelerate in the second half of FY26. |
AI Semiconductors Technology Demand | |
E-commerceMonotaRO is positioned as the leading e-commerce platform in the fragmented Japanese Maintenance, Repair, and Operations market. This market leadership should enable the company to continue capturing substantial market share from traditional, inefficient distributors. |
E-commerce Digital Market Share Japan | |
| 2025 Q2 |
AIOracle's cloud-infrastructure revenue soared 50% year-on-year driven by AI demand, with management forecasting continued acceleration. DISCO Corp benefited from robust demand from advanced semiconductor foundries and stabilisation in EV-related power devices, with market responding favourably to capacity expansion plans linked to generative AI and next-generation communications. |
Cloud Data Centers Semiconductors Oracle DISCO |
CloudOracle's cloud narrative drove decisive re-rating with cloud-infrastructure revenue up 50% year-on-year to over US$3 billion, while remaining performance obligations climbed 41%. A multiyear cloud contract valued at US$30-billion-per-year was revealed, widely rumoured to be associated with OpenAI's Stargate data-centre programme. |
Data Centers AI Oracle Infrastructure Growth | |
| 2025 Q1 |
Trade PolicyPresident Trump's Liberation Day announcement introduced sweeping universal tariffs across all trading partners, triggering immediate flight to safety and market volatility. The announcement was later paused on April 9 to allow time for negotiations, leading to recovery in risk asset prices. |
Tariffs Trade Wars Policy Volatility Risk |
CloudOBIC benefitted from Japanese SMEs migrating their ERP platforms to the cloud, with Japan still lagging behind other developed countries in cloud data usage and penetration. The company has consistently generated double-digit operating profit growth since 2017. |
ERP Migration Japan SME Growth | |
QualityThe fund focuses on quality companies with consistently high returns, strong balance sheets, and defensive characteristics. Examples include Gartner's sector-leading profit margins and strong cash conversion, and Deckers' impressive cash conversion and net cash position. |
Margins Returns Balance Sheet Defensive Cash | |
| 2024 Q4 |
AIAlphabet continues to be attractively valued with double-digit growth underwritten by advancements in AI and supercomputing, enabling the company to remain at the leading-edge of search. Broadcom is a key player in the booming AI market where they develop custom chips used in data centres tailored to specific customer needs. |
Artificial Intelligence Supercomputing Custom Chips Data Centers |
Small CapsSmall and mid-cap equities look poised to benefit looking forward. The MSCI World SMID Cap Index has lagged the corresponding large cap index by over 20% over the past two years, marking the worst relative performance this century. This underperformance has been unwarranted and leaves the sub-asset class well-positioned for a strong reversal in 2025. |
SMID Cap Relative Performance Reversal Underperformance | |
QualityThe fund maintains its quality-at-a-reasonable-price (QARP) approach, focusing on consistently high returning companies. Style influences worked against the portfolio due to structural biases towards the underperforming Quality and Low Risk factors during the period. |
QARP High Returns Low Risk Style Factors | |
| 2024 Q2 |
AIStrong demand for AI large language model training and inferencing drove Oracle's cloud infrastructure growth, with management guiding 50%+ OCI growth in FY25. Oracle signed IaaS contracts totaling US$12.5 billion with 43% YoY growth, including partnerships with Google, Microsoft, and OpenAI. The AI theme continues to propel technology-related names higher across semiconductors, software, and hardware segments. |
Cloud Data Centers Software Infrastructure |
QualityThe fund maintains its philosophy of buying quality companies at reasonable valuations, focusing on consistently high returning companies with strong fundamentals. This approach steers away from companies with cyclical earnings and maintains valuation discipline. The strategy emphasizes lower risk stocks with better earnings stability, lower balance sheet leverage, and lower beta characteristics. |
Value Earnings Growth Dividends |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | MELI | MercadoLibre, Inc. | Internet Retail | Internet & Direct Marketing Retail | Bull | NASDAQ | competitive moat, e-commerce, Emerging markets, founder-led, growth, Latin America, marketplace, sustained profitability | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | DB1.DE | Deutsche Boerse AG | Financial Data & Stock Exchanges | Financial Exchanges & Data | Bull | - | Clearing Services, Derivatives Trading, Europe, Financial Exchanges, high-margin, market data, recurring revenue, Volatility Beneficiary | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | BOOT | Boot Barn Holdings, Inc. | Apparel Retail | Specialty Retail | Bull | New York Stock Exchange | Apparel, growth, same-store sales growth, SMID-Cap, Specialty retail, store rollout, US, Western Wear | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | TEL | TE Connectivity Ltd. | Electronic Components | Electronic Components | Bull | New York Stock Exchange | AI infrastructure, Connectors, double-digit growth, Electric Vehicles, Electronic Components, Free Cash Flow, Industrial automation, shareholder returns | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | 4307.T | Nomura Research Institute, Ltd. | Information Technology Services | IT Services | Bull | New York Stock Exchange | AI implementation, Consulting, cost optimization, financial services, Fixed-Price Contracts, IT services, Japan, manufacturing | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | ODFL | Old Dominion Freight Line Inc. | Industrials | Cargo Ground Transportation | Bull | NASDAQ | Cyclicals, Logistics, Ltl, Pricing, Trucking | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | TSCO | Tractor Supply Company | Consumer Discretionary | Specialty Retail | Bear | NASDAQ | guidance, retail, Rural, seasonality, Weather | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | GWW | W.W. Grainger Inc. | Industrials | Industrial Distribution | Bull | New York Stock Exchange | cashflow, Industrial distribution, Margins, MRO, scale | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | LPLA | LPL Financial Holdings Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Advisors, Brokerage, Inflows, operating leverage, wealth management | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | JKHY | Jack Henry & Associates Inc. | Information Technology | Application Software | Bear | NASDAQ | Capital Rotation, Core banking, Fintech, Software, valuation | Login |
| Oct 14, 2025 | Fund Letters | Ned Bell | ASML | ASML Holding NV | Information Technology | Semiconductor Equipment | Bull | Euronext Stock Exchange | AI, CapEx, Euv, growth, Lithography, semiconductors, technology | Login |
| Oct 14, 2025 | Fund Letters | Ned Bell | SGE | Sage Group PLC | Information Technology | Software | Bull | London Stock Exchange | AI, cloud, growth, Margins, SaaS, SMB, Software | Login |
| Oct 14, 2025 | Fund Letters | Ned Bell | WM | Waste Management Inc. | Industrials | Environmental Services | Bull | NYSE | defensive, dividends, FCF, infrastructure, Pricing power, utilities, waste | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | NFLX | Netflix Inc. | Communication Services | Interactive Media & Services | Neutral | NASDAQ | digital advertising, entertainment, profit-taking, Streaming, Subscriber Growth, technology, valuation | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | LULU | Lululemon Athletica Inc. | Consumer Discretionary | Apparel, Accessories & Luxury Goods | Bull | NASDAQ | athletic apparel, brand strength, Canada, Comparable Growth, product innovation, turnaround, US market | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | BJ | BJ's Wholesale Club Holdings Inc. | Consumer Staples | Hypermarkets & Super Centers | Bull | NYSE | capital allocation, consumer staples, membership model, recurring revenue, Regional Focus, Value retail, Warehouse club | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | 6146.T | DISCO Corporation | Information Technology | Semiconductor Equipment | Bull | Tokyo Stock Exchange | AI infrastructure, capacity expansion, EV Power Devices, Foundries, Japan, Precision Manufacturing, semiconductor equipment | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | AIR.PA | Airbus SE | Industrials | Aerospace & Defense | Bull | Euronext Paris | Aerospace, backlog, cash flow, Commercial Aircraft, Defense, Europe, market share, Production Recovery | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | NASDAQ | AI, backlog growth, cloud infrastructure, data centers, Enterprise software, hyperscale, SaaS | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | antitrust, Artificial Intelligence, Communication Services, growth, search engine, Supercomputing, technology | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | LULU | Lululemon Athletica Inc. | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bull | NASDAQ | athletic apparel, Brand, China, Consumer Discretionary, growth, retail, turnaround, US market | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | UNH | UnitedHealth Group Inc. | Health Care | Health Care Providers & Services | Bull | NYSE | diversification, Health Care, Insurance, Pharmacy Benefit Manager, Regulatory risk, scale, Value | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | AVGO | Broadcom Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | Artificial Intelligence, custom chips, data centers, Enterprise software, high margins, M&A, semiconductors, Software | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | CLH | Clean Harbors Inc. | Industrials | Commercial Services & Supplies | Bull | NYSE | Asset Scarcity, environmental services, Hazardous Waste, Manufacturing Onshoring, Pfas, Pricing power, Regulatory tailwinds | Login |
| Jun 30, 2024 | Fund Letters | Bell Global Equities Fund | ADBE | Adobe Inc. | Information Technology | Application Software | Bull | NASDAQ | AI Resilience, Application Software, creative software, digital media, growth, SaaS | Login |
| Jun 30, 2024 | Fund Letters | Bell Global Equities Fund | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | NASDAQ | AI infrastructure, cloud infrastructure, Database Software, Enterprise software, growth, Partnerships, SaaS | Login |
| Jun 30, 2024 | Fund Letters | Bell Global Equities Fund | NKE | NIKE, Inc. | Consumer Discretionary | Footwear | Neutral | NYSE | Apparel, Athletic Footwear, brand value, China exposure, innovation, margin pressure, Wholesale Channel | Login |
| Jun 30, 2024 | Fund Letters | Bell Global Equities Fund | 4768.T | OBIC Co., Ltd. | Information Technology | Application Software | Bull | Tokyo Stock Exchange | cloud migration, customer retention, ERP software, Japan, market leader, SME market, Value Entry | Login |
| TICKER | COMMENTARY |
|---|---|
| DB1.DE | Deutsche Boerse was supported by improving investor sentiment as a pickup in market volatility drove increased trading activity, particularly within its high-margin derivatives franchise (Eurex), positioning the company for potential near-term earnings upside. The business continues to benefit from structurally attractive growth drivers, including higher clearing volumes, sustained demand for risk management products and the ongoing migration toward centrally cleared markets. In addition, its data and analytics segment provides a stable, recurring revenue base that enhances earnings visibility. Despite these strengths, the stock entered the period at a relatively undemanding valuation for a business of this quality, which, combined with rising expectations for earnings upgrades, supported a re-rating. Overall, Deutsche Boerse offers an attractive mix of defensive recurring revenues and cyclical upside from increased market activity. We continue to hold the name in the portfolio, although have trimmed some profits following the outperformance. |
| BOOT | Boot Barn was among the most notable detractors over the month. The escalation in geopolitical tensions drove a broad sell-off across Consumer Discretionary, reflecting both risk aversion and rising concerns around household spending as fuel costs increased and inflation expectations moved higher. As a SMID-cap, high-growth apparel retailer, Boot Barn was particularly exposed to these dynamics. Despite this near-term pressure, we retain conviction in the company's ability to deliver low single-digit same-store sales growth while continuing its strong store rollout strategy, supporting sustained top-line expansion. While some macro risk factors have increased, we see the risk-reward as attractive at this level following the valuation de-rating and therefore remain comfortable holding the name in the portfolio. |
| TEL | Among the new additions was TE Connectivity, a global leader in electrical connectors. One of the primary tailwinds for the company has recently been its increased market share in the critical components that distribute power, signal, and data across electric vehicles, factory robots and hyperscale AI server racks. This positioning is expected to support a sustained period of double-digit revenue growth, alongside margin expansion over the medium-term. The company also consistently generates significant free cash flow and boasts a shareholder-friendly management team, illustrated earlier this year when the board approved a 10% quarterly dividend hike alongside a substantial $3 billion expansion to its share repurchase program. We currently model meaningful upside looking forward, driven by a combination of earnings upgrades and potential for valuation multiple expansion. |
| 4307.T | We also initiated a position in Nomura Research Institute following a sharp pullback in its share price and a positive meeting with management on our recent research trip to Japan. The company operates as a leading IT solutions provider and consultancy, primarily serving financial, retail and manufacturing clients in Japan. We believe that the business will benefit from both revenue growth and cost optimisation opportunities arising from the accelerating implementation of AI within both customer workflows and its own operations. Furthermore, customer adoption of AI should also drive an acceleration in consultancy and implementation revenues, while the fixed-price nature of the IT Solutions business will benefit from the company's own AI adoption internally. We anticipate that the upcoming capital markets day will provide greater clarity on the medium-term growth outlook and progress of its international restructuring initiatives. |
| MELI | A holding was also established in MercadoLibre, the Amazon of Latin America. MercadoLibre is a vast enterprise, shipping over US$85bn (3bn items) worth of goods each year to over 120 million customers. Both volumes and revenues have increased tenfold over the past six years, while the income statement and cash flow inflected into sustained profitability. We have long admired this company and its excellent founder-led management team, but the shares only occasionally provide an opportune window to enter a position. We had watched its success attract renewed competition last year and anticipated margins to come under pressure. With margin forecasts now reset to appropriate levels, we used the recent share price weakness to begin a position in a company where we forecast earnings will more than triple in the five years ahead. |
| NKE | Nike was among the more notable disposals during March, with the position closed ahead of its latest earnings release. This was a position initiated late last year as confidence grew that the turnaround under new management was gaining traction. In the prior quarter, inventories had been brought under control, tariffs were well incorporated into margin forecasts, and the important US business delivered a second consecutive quarter of accelerating growth in the key wholesale channel. However, following the escalation of conflict in the Middle East and the associated inflationary pressures, we saw increasing risks to the recovery and therefore decided to exit ahead of what we feared could be a softer earnings print. |
| ODFL | Among other exits was the sale of Old Dominion Freight Line, a leading US less-than-truckload (LTL) carrier. While we continue to see good scope for strong earnings growth in the coming years as earnings rebound from depressed levels, a strong rally in the share price and material valuation re-rating have largely priced this in. With the potential for macro disruptions related to the conflict in Iran, we felt the risk-reward profile was starting to skew to the downside and therefore exited the position. |
| 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 | |||