BNY Mellon Appreciation Fund

Investor Summary

Managed by an experienced team at Fayez Sarofim & Co. led by Gentry Lee (CEO/CIO since 2010), Catherine Crain (CFA since 2000), Christopher Sarofim (Chairman since 2000), and Alan Christensen (CFA since 2020). The management team averages 17.8 years of tenure and combines BNY Mellon's institutional resources with specialized equity expertise. The team focuses on identifying dominant large companies in sectors expected to expand over 3-5 years through rigorous fundamental analysis.

Fund Strategy

The fund seeks long-term capital growth consistent with preservation of capital as its primary objective, with current income as secondary goal. It focuses on blue-chip companies with market capitalizations exceeding $5 billion, employing a buy-and-hold strategy with portfolio turnover typically below 15%. The investment approach emphasizes sustainable, above-average earnings growth as the single most important parameter, utilizing a 3-5 year bottom-up approach focused on companies with strong financials, profitability, and competitive positioning in attractive industries.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
12.55%	8.49%	1.47%

Executive Summary

The BNY Mellon Appreciation Fund returned 8.49% in Q2 2026, underperforming the S&P 500 Index's 15.20% gain due to negative stock selection effects. The quarter was marked by accelerating AI infrastructure investments, with technology companies collectively planning to spend $710 billion in 2026, up from $650 billion previously projected. Semiconductor companies and cloud computing providers benefited from this AI supply/demand imbalance, while software stocks rebounded as AI disruption concerns dissipated. The Iran War created volatility through oil supply shocks, driving fuel prices above $4 per gallon and benefiting energy companies while pressuring airlines and cruise lines. Resurgent inflation prompted the Federal Reserve to maintain rates at 3.50%-3.75% under new Chairman Kevin Warsh's hawkish stance, with markets now expecting rate hikes instead of cuts. The fund's top contributors included Alphabet, ASML, Taiwan Semiconductor, NVIDIA, and Amazon, while detractors included Intuit, Chevron, Exxon Mobil, BAE Systems, and CME Group. The manager maintains focus on quality companies with strong balance sheets and pricing power, positioned to adapt through technological and political uncertainty while benefiting from long-term AI trends.

Forward Outlook

The manager maintains a long-term investment outlook focused on quality companies with strong balance sheets, durable pricing power, and cash generation capabilities. The portfolio construction remains deliberate and anchored by principles that have driven success over six decades. The manager expects more market dispersion as time passes and continues to favor businesses that can pivot and adapt during periods of uncertainty or disruption, often emerging in improved positions. The manager shows continued enthusiasm for AI exposure while remaining focused on applying rigorous investment philosophy.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 15 2026	2026 Q2	AAPL, AMZN, ASML, AVGO, BAESY, CME, CVX, GOOGL, INTU, META, MSFT, NVDA, TSM, V, XOM	AI, energy, inflation, Iran War, large cap, semiconductors, technology	-	The fund underperformed in Q2 2026 despite strong AI infrastructure spending driving semiconductor and cloud computing gains. Technology companies accelerated AI investments to $710 billion while the Iran War created oil supply shocks and inflationary pressures. The Fed maintained hawkish policy under new leadership. The manager maintains conviction in quality large-cap holdings with strong balance sheets positioned to benefit from AI trends and adapt through geopolitical uncertainty.
Apr 21 2026	2026 Q1	AMZN, ASML, BAESY, CVX, GOOGL, INTU, META, MSFT, TSM, XOM	AI, energy, geopolitics, large cap, Quality, technology, Trade Policy	-	Fund underperformed during Iran War-driven oil shock that sent crude up 60% while AI bubble fears and tariff uncertainty pressured markets. Energy holdings benefited from supply disruption while tech positions faced AI disruption concerns. Manager maintains quality-focused approach targeting companies with strong balance sheets and pricing power to navigate prolonged uncertainty periods.
Jan 18 2026	2025 Q4	AAPL, AMZN, ASML, BA.L, ETN, GOOGL, INTU, ISRG, LLY, MC.PA, META, MSFT, NOW, NVDA, TSM, V	AI, consumer, earnings, Fed policy, large cap, technology, Trade Policy, volatility	-	BNY Mellon Appreciation Fund underperformed in Q4 2025 amid strong earnings but growing AI bubble concerns and consumer bifurcation. Technology partnerships exceeded $1 trillion while trade tensions eased between U.S. and China. The fund maintains focus on industry-leading businesses capable of consistent earnings growth through cycles despite unprecedented policy uncertainty.
Oct 21 2025	2025 Q3	AAPL, AMZN, ASML, BLK, GOOGL, INTU, ISRG, META, MSFT, NOW, NVDA, NVO, TSM, TXN, V	AI, earnings, large cap, Quality, rates, technology, Trade Policy	MSFT NVDA ASML NA TSM INTU	BNY Mellon Appreciation Fund underperformed in Q3 2025 despite positive market conditions driven by trade deals, resilient earnings, and Fed rate cuts. AI infrastructure investments and technology sector strength continued, while trade policy impacts remained manageable. The fund maintains conviction in high-quality multinational leaders positioned for long-term compounding growth across market cycles.
Jul 15 2025	2025 Q2	AAPL, AMZN, ASML, BA.L, BRK-B, CVX, GOOGL, INTU, MC.PA, META, MSFT, NVDA, TXN, UNH, V	AI, earnings, large cap, tariffs, technology, Trade Policy, volatility	-	BNY Mellon Appreciation Fund returned 8.84% in Q2 2025, underperforming the S&P 500's 10.94% gain amid tariff-driven volatility. Strong technology earnings and trade tension de-escalation supported markets. The Fund's global industry leaders with sustainable growth prospects remain well-positioned despite near-term policy uncertainties around tariffs and monetary policy direction.
Mar 31 2025	2025 Q1	AAPL, AMZN, BA.L, BRK-B, CVX, GOOGL, META, MSFT, NVDA, PGR, TXN, V	AI, large cap, Quality, tariffs, technology, Trade Policy, value	-	BNY Mellon Appreciation Fund outperformed in volatile Q1 2025, declining 3.30% versus S&P 500's 4.27% drop. Trump tariff announcements created trade policy uncertainty, pressuring equities despite continued AI investment by technology companies. Strong stock selection in financials and industrials drove outperformance. Fund maintains disciplined focus on quality companies with strong fundamentals capable of navigating policy uncertainties.
Dec 31 2024	2024 Q4	AAPL, AMZN, ASML, GOOGL, LVMUY, MSFT, NOW, NVDA, NVO, SPGI, TXN, UNH, V	AI, Federal Reserve, growth, large cap, Quality, rates, technology, Trade Policy	-	BNY Mellon Appreciation Fund underperformed in Q4 2024 due to negative stock selection in technology and consumer discretionary sectors. The fund maintains focus on high-quality industry leaders with strong management teams and balance sheets. AI infrastructure investments showed tangible returns while Fed rate cuts and Trump's election victory supported market sentiment despite policy uncertainty.
Jun 30 2024	2024 Q2	AAPL, AMZN, ASML, CP, CVX, GOOGL, MC.PA, MSFT, NKE, NVDA, NVO, SHW, TXN, UNH, V	consumer, growth, healthcare, large cap, Quality, technology	-	BNY Mellon Appreciation Fund slightly underperformed in Q2 2024 with a quality-focused large-cap strategy. Strong performance from Microsoft, Apple, and Novo Nordisk was offset by weakness in Visa and consumer discretionary names. The manager maintains cautious optimism given potential Fed rate cuts while focusing on companies with pricing power and strong balance sheets positioned for economic uncertainty.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 15 2026

2026 Q2

AAPL, AMZN, ASML, AVGO, BAESY, CME, CVX, GOOGL, INTU, META, MSFT, NVDA, TSM, V, XOM

AI, energy, inflation, Iran War, large cap, semiconductors, technology

The fund underperformed in Q2 2026 despite strong AI infrastructure spending driving semiconductor and cloud computing gains. Technology companies accelerated AI investments to $710 billion while the Iran War created oil supply shocks and inflationary pressures. The Fed maintained hawkish policy under new leadership. The manager maintains conviction in quality large-cap holdings with strong balance sheets positioned to benefit from AI trends and adapt through geopolitical uncertainty.

Apr 21 2026

2026 Q1

AMZN, ASML, BAESY, CVX, GOOGL, INTU, META, MSFT, TSM, XOM

AI, energy, geopolitics, large cap, Quality, technology, Trade Policy

Fund underperformed during Iran War-driven oil shock that sent crude up 60% while AI bubble fears and tariff uncertainty pressured markets. Energy holdings benefited from supply disruption while tech positions faced AI disruption concerns. Manager maintains quality-focused approach targeting companies with strong balance sheets and pricing power to navigate prolonged uncertainty periods.

Jan 18 2026

2025 Q4

AAPL, AMZN, ASML, BA.L, ETN, GOOGL, INTU, ISRG, LLY, MC.PA, META, MSFT, NOW, NVDA, TSM, V

AI, consumer, earnings, Fed policy, large cap, technology, Trade Policy, volatility

BNY Mellon Appreciation Fund underperformed in Q4 2025 amid strong earnings but growing AI bubble concerns and consumer bifurcation. Technology partnerships exceeded $1 trillion while trade tensions eased between U.S. and China. The fund maintains focus on industry-leading businesses capable of consistent earnings growth through cycles despite unprecedented policy uncertainty.

Oct 21 2025

2025 Q3

AAPL, AMZN, ASML, BLK, GOOGL, INTU, ISRG, META, MSFT, NOW, NVDA, NVO, TSM, TXN, V

AI, earnings, large cap, Quality, rates, technology, Trade Policy

MSFT
NVDA
ASML NA
TSM
INTU

BNY Mellon Appreciation Fund underperformed in Q3 2025 despite positive market conditions driven by trade deals, resilient earnings, and Fed rate cuts. AI infrastructure investments and technology sector strength continued, while trade policy impacts remained manageable. The fund maintains conviction in high-quality multinational leaders positioned for long-term compounding growth across market cycles.

Jul 15 2025

2025 Q2

AAPL, AMZN, ASML, BA.L, BRK-B, CVX, GOOGL, INTU, MC.PA, META, MSFT, NVDA, TXN, UNH, V

AI, earnings, large cap, tariffs, technology, Trade Policy, volatility

BNY Mellon Appreciation Fund returned 8.84% in Q2 2025, underperforming the S&P 500's 10.94% gain amid tariff-driven volatility. Strong technology earnings and trade tension de-escalation supported markets. The Fund's global industry leaders with sustainable growth prospects remain well-positioned despite near-term policy uncertainties around tariffs and monetary policy direction.

Mar 31 2025

2025 Q1

AAPL, AMZN, BA.L, BRK-B, CVX, GOOGL, META, MSFT, NVDA, PGR, TXN, V

AI, large cap, Quality, tariffs, technology, Trade Policy, value

BNY Mellon Appreciation Fund outperformed in volatile Q1 2025, declining 3.30% versus S&P 500's 4.27% drop. Trump tariff announcements created trade policy uncertainty, pressuring equities despite continued AI investment by technology companies. Strong stock selection in financials and industrials drove outperformance. Fund maintains disciplined focus on quality companies with strong fundamentals capable of navigating policy uncertainties.

Dec 31 2024

2024 Q4

AAPL, AMZN, ASML, GOOGL, LVMUY, MSFT, NOW, NVDA, NVO, SPGI, TXN, UNH, V

AI, Federal Reserve, growth, large cap, Quality, rates, technology, Trade Policy

BNY Mellon Appreciation Fund underperformed in Q4 2024 due to negative stock selection in technology and consumer discretionary sectors. The fund maintains focus on high-quality industry leaders with strong management teams and balance sheets. AI infrastructure investments showed tangible returns while Fed rate cuts and Trump's election victory supported market sentiment despite policy uncertainty.

Jun 30 2024

2024 Q2

AAPL, AMZN, ASML, CP, CVX, GOOGL, MC.PA, MSFT, NKE, NVDA, NVO, SHW, TXN, UNH, V

consumer, growth, healthcare, large cap, Quality, technology

BNY Mellon Appreciation Fund slightly underperformed in Q2 2024 with a quality-focused large-cap strategy. Strong performance from Microsoft, Apple, and Novo Nordisk was offset by weakness in Visa and consumer discretionary names. The manager maintains cautious optimism given potential Fed rate cuts while focusing on companies with pricing power and strong balance sheets positioned for economic uncertainty.

QUARTER	THEMES	TAGS
2026 Q2	AI Technology companies announced plans to accelerate AI infrastructure investments to $710 billion in 2026, up from $650 billion projected in the prior quarter. This heightened spending is driven by a growing AI supply/demand imbalance and inflation in datacenter components. Companies demonstrating revenue acceleration from AI, such as cloud computing providers and datacenter component manufacturers, saw share price gains.	Data Centers Cloud Semiconductors Infrastructure Spending
	Semiconductors Semiconductor companies delivered better-than-expected earnings reports during the quarter. Manufacturers of critical components required to build datacenters experienced share price gains as AI infrastructure spending accelerated. The sector benefited from the AI supply/demand imbalance and continued strong demand for datacenter components.	Semi Equipment Foundries GPUs Memory
	Software A group of software stocks experienced a rebound during the period as concerns of widespread AI disruption began to dissipate. Successful product showcases and durable fundamentals reported throughout earnings season supported the recovery. However, companies with large AI spending budgets but slower revenue growth were challenged.	SaaS Enterprise Software Cloud
	Oil Energy companies benefited from the Iran War's early oil supply shock, with many reporting higher profits amid the surge in fuel prices. While the group has since given back some share price gains, lingering uncertainty remains as the conflict comes to a final resolution. Average gasoline prices exceeded $4 per gallon in the quarter.	Exploration & Production Integrated Oil & Gas Refiners
	Inflation Both the Personal Consumption Expenditure Price Index and the Consumer Price Index accelerated over the prior months. Core readings, which exclude food and energy, also rose as high fuel prices were passed onto goods and services via higher input costs. Reaccelerating inflation shifted market expectations for Fed policy, with investors now expecting 25 basis points of rate hikes during the year.	Rates Commodities
	Iran The Iran War remained in a stalemate with anticipation that a formal end could be ultimately negotiated. The conflict triggered an oil supply shock that drove fuel prices higher, particularly impacting airlines and cruise lines. Corporate outlooks were more cautious, warning that a prolonged war could drive fuel prices up too far and hurt consumer demand.	Middle East Oil Geopolitical
2026 Q1	Oil Iran War created oil supply shock with Strait of Hormuz closure affecting 20% of global crude oil supply. Brent Crude rose over 60% to $118/barrel, driving fuel prices higher and potentially dampening consumer demand while increasing input costs for goods.	Energy Geopolitics Supply Chain Inflation Commodities
	AI Technology companies accelerated AI infrastructure investments to over $600 billion in 2026, up $100 billion from year start. However, AI investments without clear profitability paths were punished by markets, and new advanced AI models from Anthropic and OpenAI created fears about threatening established software companies.	Technology Infrastructure Software Disruption
	Trade Policy Supreme Court ruled against Trump Administration's use of IEEPA for reciprocal tariffs, prompting administration to pursue 10-15% tariffs under Section 122 for 150 days. Ruling raises questions about corporate refunds and benefits Canada, Mexico, and Asia while affecting EU and UK negotiations.	Policy Tariffs International Trade Regulation
	Energy Energy sector companies benefiting from sharp increase in energy prices while focused on operational efficiencies and monetizing prior investments. U.S. energy firms have limited Middle East exposure with operations centered in domestic natural gas and crude, providing insulation from supply chain disruptions.	Oil Natural Gas Earnings Operations
	Quality Manager emphasizes quality companies led by experienced leadership teams that navigate uncertainty and leverage strengths to consistently grow earnings throughout business cycles. Believes companies with strong balance sheets, pricing power, and cash flows to fund growth are well positioned for prolonged uncertainty periods.	Balance Sheets Earnings Leadership Cash Flow
2025 Q4	AI AI investments dominated market performance with technology companies reporting strong revenue growth and pledging increased capital expenditures. However, investor concerns arose around circular funding deals reminiscent of vendor financing and uncertain return profiles. Strong NVIDIA earnings resulted in muted market response, suggesting investors became more discerning of AI-related investments.	Artificial Intelligence Technology Capital Expenditures Semiconductors Cloud Computing
	Data Centers Data center construction benefited the industrials sector as tremendous computing demand outstrips current supply. Partnerships between OpenAI and public technology companies totaled over $1 trillion in future spending on AI chips, datacenters, and cloud computing infrastructure.	Infrastructure Cloud Computing Technology Industrials
	Trade Policy President Trump and Chinese Leader Xi met and agreed on de-escalatory moves that reversed trade restrictions previously imposed. The U.S. government approved the sale of scaled-down AI chips to China in a further thawing of relations. However, the oscillating nature of tariff negotiations and a looming U.S. Supreme Court decision remain a risk.	China Tariffs Geopolitics Trade Relations
	Trade Down Consumer reports highlighted an increasingly pronounced bifurcation, with higher-income consumers continuing to spend broadly and lower-income consumers seeking out value and trading down. Retail-facing companies reported higher levels of consumer uncertainty as high interest rates delay large purchase decisions.	Consumer Behavior Retail Income Inequality
2025 Q3	AI Large technology companies reported benefits from deploying AI internally and for clients, which boosted revenue growth. These companies also expanded investment plans for additional AI resources to meet growing demand, as consumers and enterprises rapidly adopt AI. Companies that have exposure to the AI datacenter buildout benefited.	Artificial Intelligence Data Centers Technology Infrastructure Revenue Growth
	Trade Policy The third quarter witnessed a litany of trade deals announced between the U.S. and its trade partners that de-escalated tensions. Agreements included 15% tariffs on Japanese imports, 15% tariffs on EU and South Korea imports, and 50% punitive tariffs on India. Tariff impacts were seen across consumer sectors with companies implementing price increases.	Tariffs Trade Deals Geopolitical Import Costs Price Increases
	Rates The Fed acknowledged the deteriorating labor market and voted to cut the Federal Funds rate by 25 basis points to a 4.00-4.25% range in September. This marked the first rate cut since December 2024, with the agency telegraphing potential for two additional 25 bps rate cuts through the end of 2025.	Federal Reserve Rate Cuts Monetary Policy Labor Market Employment
	Earnings The second quarter earnings season revealed resilient economy despite macroeconomic headwinds. Corporate sales and earnings came in above consensus forecasts, beating expectations. Companies reported earnings growth while dealing with a slowing consumer and dynamic tariff environment.	Corporate Results Consensus Beat Revenue Growth Profit Margins Financial Performance
2025 Q2	Trade Policy President Trump announced sweeping tariffs on trade partners including 34% on China, 20% on EU, and 20-46% on Asian partners. After initial market shock, a 90-day pause was instituted with negotiations leading to tariff reductions. Trade policy uncertainty continues to weigh on investor sentiment and corporate investment plans.	Tariffs China Trade War Negotiations Policy
	AI Large technology companies reported strong earnings and issued better-than-expected guidance with higher capital expenditure plans to expand AI computing capacity. AI investments remain a key investor theme driving earnings growth and positive sentiment in the technology sector.	Computing Technology Capex Earnings Growth
2025 Q1	Trade Policy The Trump administration announced 25% tariffs on Mexico and Canada, 20% on China, and 25% on foreign automobiles, with future reciprocal tariffs telegraphed. This created uncertainty over trade relationships and pressured equities as investors feared higher consumer costs and slower growth.	Tariffs Trade Policy Uncertainty Growth
	AI Technology companies announced plans to invest even greater amounts into AI infrastructure to meet burgeoning demand. Companies cited success using AI in automation and aiding workers as sources of productivity enhancement, helping alleviate concerns from the DeepSeek-driven sell-off.	Infrastructure Automation Productivity Technology Investment
2024 Q4	AI Corporate results indicated AI infrastructure investments were yielding tangible returns, particularly in cloud computing offerings, efficiencies gained, and improvements across advertising and content. Management for many large technology companies signaled plans for further investments in this area, which should benefit semiconductor designers and manufacturers.	Cloud Semiconductors Infrastructure Technology Efficiency
	Trade Policy Trump policy proposals, including tariffs, immigration, and foreign policy, have the potential to be inflationary or to detract from economic growth. Investors remain focused on the potentially inflationary nature of Trump's proposed fiscal policies.	Tariffs Inflation Policy Immigration Growth
	Rates The Fed cut the Federal Funds Rate by 25 basis points both in November and December, bringing the benchmark rate to a range of 4.25 – 4.50%. The Fed's updated forecast projected 50 bps of rate cuts in 2025, down from their previous forecast of 100 bps, hinting at concern of reemergent inflation.	Federal Reserve Monetary Policy Inflation Easing Growth
2024 Q2	AI Large technology companies continue to focus capital expenditure on expanding artificial intelligence capabilities to meet burgeoning demand. Management teams from many companies across various industries discussed potential monetization opportunities and efficiency gains from deploying AI.	Technology Capital Expenditure Monetization Efficiency
	Trade Down Having endured a prolonged period of price increases stemming from pandemic-era supply chain issues, consumers are now trading down to lower-priced selections and shopping around to get the best deal before making a purchase. The consumer outlook is more stark for companies with meaningful exposure to China.	Consumer Price Increases China Shopping

QUARTER

THEMES

AI

Technology companies announced plans to accelerate AI infrastructure investments to $710 billion in 2026, up from $650 billion projected in the prior quarter. This heightened spending is driven by a growing AI supply/demand imbalance and inflation in datacenter components. Companies demonstrating revenue acceleration from AI, such as cloud computing providers and datacenter component manufacturers, saw share price gains.

Data Centers Cloud Semiconductors Infrastructure Spending

Semiconductors

Semiconductor companies delivered better-than-expected earnings reports during the quarter. Manufacturers of critical components required to build datacenters experienced share price gains as AI infrastructure spending accelerated. The sector benefited from the AI supply/demand imbalance and continued strong demand for datacenter components.

Semi Equipment Foundries GPUs Memory

Software

A group of software stocks experienced a rebound during the period as concerns of widespread AI disruption began to dissipate. Successful product showcases and durable fundamentals reported throughout earnings season supported the recovery. However, companies with large AI spending budgets but slower revenue growth were challenged.

SaaS Enterprise Software Cloud

Oil

Energy companies benefited from the Iran War's early oil supply shock, with many reporting higher profits amid the surge in fuel prices. While the group has since given back some share price gains, lingering uncertainty remains as the conflict comes to a final resolution. Average gasoline prices exceeded $4 per gallon in the quarter.

Exploration & Production Integrated Oil & Gas Refiners

Inflation

Both the Personal Consumption Expenditure Price Index and the Consumer Price Index accelerated over the prior months. Core readings, which exclude food and energy, also rose as high fuel prices were passed onto goods and services via higher input costs. Reaccelerating inflation shifted market expectations for Fed policy, with investors now expecting 25 basis points of rate hikes during the year.

Rates Commodities

Iran

The Iran War remained in a stalemate with anticipation that a formal end could be ultimately negotiated. The conflict triggered an oil supply shock that drove fuel prices higher, particularly impacting airlines and cruise lines. Corporate outlooks were more cautious, warning that a prolonged war could drive fuel prices up too far and hurt consumer demand.

Middle East Oil Geopolitical

2026 Q1

Oil

Iran War created oil supply shock with Strait of Hormuz closure affecting 20% of global crude oil supply. Brent Crude rose over 60% to $118/barrel, driving fuel prices higher and potentially dampening consumer demand while increasing input costs for goods.

Energy Geopolitics Supply Chain Inflation Commodities

AI

Technology companies accelerated AI infrastructure investments to over $600 billion in 2026, up $100 billion from year start. However, AI investments without clear profitability paths were punished by markets, and new advanced AI models from Anthropic and OpenAI created fears about threatening established software companies.

Technology Infrastructure Software Disruption

Trade Policy

Supreme Court ruled against Trump Administration's use of IEEPA for reciprocal tariffs, prompting administration to pursue 10-15% tariffs under Section 122 for 150 days. Ruling raises questions about corporate refunds and benefits Canada, Mexico, and Asia while affecting EU and UK negotiations.

Policy Tariffs International Trade Regulation

Energy

Energy sector companies benefiting from sharp increase in energy prices while focused on operational efficiencies and monetizing prior investments. U.S. energy firms have limited Middle East exposure with operations centered in domestic natural gas and crude, providing insulation from supply chain disruptions.

Oil Natural Gas Earnings Operations

Quality

Manager emphasizes quality companies led by experienced leadership teams that navigate uncertainty and leverage strengths to consistently grow earnings throughout business cycles. Believes companies with strong balance sheets, pricing power, and cash flows to fund growth are well positioned for prolonged uncertainty periods.

Balance Sheets Earnings Leadership Cash Flow

2025 Q4

AI

AI investments dominated market performance with technology companies reporting strong revenue growth and pledging increased capital expenditures. However, investor concerns arose around circular funding deals reminiscent of vendor financing and uncertain return profiles. Strong NVIDIA earnings resulted in muted market response, suggesting investors became more discerning of AI-related investments.

Artificial Intelligence Technology Capital Expenditures Semiconductors Cloud Computing

Data Centers

Data center construction benefited the industrials sector as tremendous computing demand outstrips current supply. Partnerships between OpenAI and public technology companies totaled over $1 trillion in future spending on AI chips, datacenters, and cloud computing infrastructure.

Infrastructure Cloud Computing Technology Industrials

Trade Policy

President Trump and Chinese Leader Xi met and agreed on de-escalatory moves that reversed trade restrictions previously imposed. The U.S. government approved the sale of scaled-down AI chips to China in a further thawing of relations. However, the oscillating nature of tariff negotiations and a looming U.S. Supreme Court decision remain a risk.

China Tariffs Geopolitics Trade Relations

Trade Down

Consumer reports highlighted an increasingly pronounced bifurcation, with higher-income consumers continuing to spend broadly and lower-income consumers seeking out value and trading down. Retail-facing companies reported higher levels of consumer uncertainty as high interest rates delay large purchase decisions.

Consumer Behavior Retail Income Inequality

2025 Q3

AI

Large technology companies reported benefits from deploying AI internally and for clients, which boosted revenue growth. These companies also expanded investment plans for additional AI resources to meet growing demand, as consumers and enterprises rapidly adopt AI. Companies that have exposure to the AI datacenter buildout benefited.

Artificial Intelligence Data Centers Technology Infrastructure Revenue Growth

Trade Policy

The third quarter witnessed a litany of trade deals announced between the U.S. and its trade partners that de-escalated tensions. Agreements included 15% tariffs on Japanese imports, 15% tariffs on EU and South Korea imports, and 50% punitive tariffs on India. Tariff impacts were seen across consumer sectors with companies implementing price increases.

Tariffs Trade Deals Geopolitical Import Costs Price Increases

Rates

The Fed acknowledged the deteriorating labor market and voted to cut the Federal Funds rate by 25 basis points to a 4.00-4.25% range in September. This marked the first rate cut since December 2024, with the agency telegraphing potential for two additional 25 bps rate cuts through the end of 2025.

Federal Reserve Rate Cuts Monetary Policy Labor Market Employment

Earnings

The second quarter earnings season revealed resilient economy despite macroeconomic headwinds. Corporate sales and earnings came in above consensus forecasts, beating expectations. Companies reported earnings growth while dealing with a slowing consumer and dynamic tariff environment.

Corporate Results Consensus Beat Revenue Growth Profit Margins Financial Performance

2025 Q2

Trade Policy

President Trump announced sweeping tariffs on trade partners including 34% on China, 20% on EU, and 20-46% on Asian partners. After initial market shock, a 90-day pause was instituted with negotiations leading to tariff reductions. Trade policy uncertainty continues to weigh on investor sentiment and corporate investment plans.

Tariffs China Trade War Negotiations Policy

AI

Large technology companies reported strong earnings and issued better-than-expected guidance with higher capital expenditure plans to expand AI computing capacity. AI investments remain a key investor theme driving earnings growth and positive sentiment in the technology sector.

Computing Technology Capex Earnings Growth

2025 Q1

Trade Policy

The Trump administration announced 25% tariffs on Mexico and Canada, 20% on China, and 25% on foreign automobiles, with future reciprocal tariffs telegraphed. This created uncertainty over trade relationships and pressured equities as investors feared higher consumer costs and slower growth.

Tariffs Trade Policy Uncertainty Growth

AI

Technology companies announced plans to invest even greater amounts into AI infrastructure to meet burgeoning demand. Companies cited success using AI in automation and aiding workers as sources of productivity enhancement, helping alleviate concerns from the DeepSeek-driven sell-off.

Infrastructure Automation Productivity Technology Investment

2024 Q4

AI

Corporate results indicated AI infrastructure investments were yielding tangible returns, particularly in cloud computing offerings, efficiencies gained, and improvements across advertising and content. Management for many large technology companies signaled plans for further investments in this area, which should benefit semiconductor designers and manufacturers.

Cloud Semiconductors Infrastructure Technology Efficiency

Trade Policy

Trump policy proposals, including tariffs, immigration, and foreign policy, have the potential to be inflationary or to detract from economic growth. Investors remain focused on the potentially inflationary nature of Trump's proposed fiscal policies.

Tariffs Inflation Policy Immigration Growth

Rates

The Fed cut the Federal Funds Rate by 25 basis points both in November and December, bringing the benchmark rate to a range of 4.25 – 4.50%. The Fed's updated forecast projected 50 bps of rate cuts in 2025, down from their previous forecast of 100 bps, hinting at concern of reemergent inflation.

Federal Reserve Monetary Policy Inflation Easing Growth

2024 Q2

AI

Large technology companies continue to focus capital expenditure on expanding artificial intelligence capabilities to meet burgeoning demand. Management teams from many companies across various industries discussed potential monetization opportunities and efficiency gains from deploying AI.

Technology Capital Expenditure Monetization Efficiency

Trade Down

Having endured a prolonged period of price increases stemming from pandemic-era supply chain issues, consumers are now trading down to lower-priced selections and shopping around to get the best deal before making a purchase. The consumer outlook is more stark for companies with meaningful exposure to China.

Consumer Price Increases China Shopping

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Oct 21, 2025	Fund Letters	Alan R.Christensen	MSFT	Microsoft Corporation	Information Technology	System Software	Bull	NASDAQ	AI, buybacks, cloud, enterprise, growth, Margins, Software	Login
Oct 21, 2025	Fund Letters	Alan R.Christensen	NVDA	NVIDIA Corporation	Information Technology	Semiconductors	Bull	NASDAQ	AI, datacenter, GPUs, growth, leadership, Margins, semiconductors	Login
Oct 21, 2025	Fund Letters	Alan R.Christensen	ASML NA	ASML Holding N.V.	Information Technology	Semiconductor Equipment	Bull	Euronext Stock Exchange	AI, backlog, Equipment, Euv, Margins, Monopoly, semiconductors	Login
Oct 21, 2025	Fund Letters	Alan R.Christensen	TSM	Taiwan Semiconductor Manufacturing Company	Information Technology	Semiconductors	Bull	NYSE	AI, Capacity, Foundry, growth, Margins, Pricing, semiconductors	Login
Oct 21, 2025	Fund Letters	Alan R.Christensen	INTU	Intuit Inc.	Information Technology	Application Software	Bear	NASDAQ	Automation, Deceleration, guidance, SMB, Software, valuation	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Oct 21, 2025

Fund Letters

Alan R.Christensen

MSFT

Microsoft Corporation

Information Technology

System Software

Bull

NASDAQ

AI, buybacks, cloud, enterprise, growth, Margins, Software

Oct 21, 2025

Fund Letters

Alan R.Christensen

NVDA

NVIDIA Corporation

Information Technology

Semiconductors

Bull

NASDAQ

AI, datacenter, GPUs, growth, leadership, Margins, semiconductors

Oct 21, 2025

Fund Letters

Alan R.Christensen

ASML NA

ASML Holding N.V.

Information Technology

Semiconductor Equipment

Bull

Euronext Stock Exchange

AI, backlog, Equipment, Euv, Margins, Monopoly, semiconductors

Oct 21, 2025

Fund Letters

Alan R.Christensen

TSM

Taiwan Semiconductor Manufacturing Company

Information Technology

Semiconductors

Bull

NYSE

AI, Capacity, Foundry, growth, Margins, Pricing, semiconductors

Oct 21, 2025

Fund Letters

Alan R.Christensen

INTU

Intuit Inc.

Information Technology

Application Software

Bear

NASDAQ

Automation, Deceleration, guidance, SMB, Software, valuation

TICKER	COMMENTARY
GOOGL	The top contributors to relative performance include Alphabet.
ASML	The top contributors to relative performance include ASML.
TSM	The top contributors to relative performance include Taiwan Semiconductor.
NVDA	The top contributors to relative performance include NVIDIA.
AMZN	The top contributors to relative performance include Amazon.com.
INTU	The top detractors to relative performance include Intuit.
CVX	The top detractors to relative performance include Chevron.
XOM	The top detractors to relative performance include Exxon Mobil.
BAESY	The top detractors to relative performance include BAE Systems.
CME	The top detractors to relative performance include CME Group.

TICKER

COMMENTARY

GOOGL

The top contributors to relative performance include Alphabet.

ASML

The top contributors to relative performance include ASML.

TSM

The top contributors to relative performance include Taiwan Semiconductor.

NVDA

The top contributors to relative performance include NVIDIA.

AMZN

The top contributors to relative performance include Amazon.com.

INTU

The top detractors to relative performance include Intuit.

CVX

The top detractors to relative performance include Chevron.

XOM

The top detractors to relative performance include Exxon Mobil.

BAESY

The top detractors to relative performance include BAE Systems.

CME

The top detractors to relative performance include CME Group.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

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

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Semiconductors

Software

Oil

Inflation

Iran

Oil

AI

Trade Policy

Energy

Quality

AI

Data Centers

Trade Policy

Trade Down

AI

Trade Policy

Rates

Earnings

Trade Policy

AI

Trade Policy

AI

AI

Trade Policy

Rates

AI

Trade Down

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Alan R.Christensen Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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BNY Mellon Appreciation Fund