Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
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| - | - | - |
Brighton Jones maintains a diversified investment approach amid significant macro uncertainty in Q1 2026. Despite a volatile environment including Middle East military escalation that doubled oil prices from $57 to over $110 per barrel, diversified portfolios delivered roughly flat quarterly returns, which the manager views as resilient given the circumstances. The Federal Reserve has cut rates 175 basis points since September 2024 but faces renewed inflation concerns from surging energy costs, with markets now pricing no further cuts through summer 2026. The dollar reversed its 2025 decline, moving back above 100 as geopolitical tensions made it a safe haven while gold declined 25%. Inflation moderated to 2.4% in February but underlying pressures remain with sticky services costs and emerging tariff effects. The manager emphasizes that successful investing comes from staying diversified rather than attempting to forecast macro variables like oil prices, which historically show no predictive relationship with stock returns. Portfolio positioning remains moderately growth-oriented with meaningful fixed income exposure.
Diversified portfolios positioned for moderate growth with meaningful fixed income allocation can navigate uncertain macro environments better than attempts to forecast oil prices, currency moves, or geopolitical outcomes.
The investment environment remains genuinely uncertain with competing forces of geopolitical tensions, inflation concerns, and growth risks. The manager emphasizes that successful investors were those who stayed invested and let diversified portfolios do their work rather than trying to forecast macro variables.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 10 2026 | 2026 Q1 | - | diversification, Dollar, geopolitics, inflation, Middle East, oil, rates | - | Brighton Jones delivered flat Q1 2026 returns despite oil doubling to $110 amid Middle East conflict. Fed rate cuts paused due to inflation concerns while dollar strengthened as safe haven. Manager emphasizes diversification over macro forecasting, noting oil prices show no historical correlation with stock returns. Maintains moderate growth positioning with significant fixed income allocation. |
| Jan 7 2026 | 2025 Q4 | DXY | diversification, Dollar, global, inflation, rates, Resilience, Trade Policy | - | Brighton Jones emphasizes market resilience through 2025's volatility, with international equities leading returns at 34% while US markets recovered from 20% declines. Trade policy disruptions from sweeping tariffs created temporary panic before negotiation pauses. Fed rate cuts totaling 175 basis points supported fixed income returns over 7%. The firm maintains moderate conservative positioning with global diversification focus. |
| Oct 8 2025 | 2025 Q3 | - | Currency, diversification, fixed income, inflation, Trade Policy, volatility | - | Brighton Jones emphasizes global diversification and long-term perspective amid market volatility. International equities outperformed with 28% returns despite currency fluctuations and policy uncertainty from Trump's tariff announcements. The Fed continues rate cuts toward neutral levels while fixed income delivers strong returns. The manager maintains moderate conservative positioning, favoring fundamentally-weighted strategies over cap-weighted indexes for the next decade. |
| Jan 15 2025 | 2024 Q4 | ADDYY, AMT, AMZN, AVGO, DEO, ES, GOOGL, MA, META, MSFT, NESN.SW, NKE, NVDA, ORCL, PUMA.DE, RKT.L, SAP, TSM, UMG.AS, UNH, YUM | AI, consumer, global, large cap, Quality, semiconductors, technology | ADS.DE | Magellan Global Opportunities delivered 3.0% in Q3 2025, focusing on quality companies with sustainable competitive advantages. Key contributors included Alphabet benefiting from antitrust clarity and TSMC gaining from AI semiconductor demand. Added Adidas as compelling long-term opportunity. Maintains cautious stance given record market levels and full valuations while expecting portfolio companies to deliver strong long-term returns. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
OilOil prices doubled from $57 to over $110 per barrel following Middle East military escalation. Historical analysis shows oil price changes have little predictive value for stock market returns, with strong and weak market years occurring across various oil price environments. |
Energy Geopolitics Commodities Inflation Middle East |
DollarThe dollar index fell below 100 in 2025 to its lowest level since 2022, leading to speculation about the end of the dollar's bull cycle. However, geopolitical tensions quickly reversed this trend, with the dollar moving back above 100 while gold declined 25%. |
Currency Safe Haven Geopolitics Gold | |
RatesThe Federal Reserve has cut rates by 175 basis points since September 2024 to 3.50-3.75%. However, long-term yields have risen due to inflation concerns, and markets now price virtually no probability of further cuts through summer 2026. |
Federal Reserve Monetary Policy Inflation Yield Curve | |
InflationInflation moderated to 2.4% in February from a 9.1% peak in June 2022. However, underlying price pressures remain stubborn with services inflation sticky and tariff pass-through beginning to appear. Surging energy prices may push inflation higher in coming months. |
CPI Energy Services Tariffs Federal Reserve | |
| 2025 Q4 |
DividendsThe fund invests approximately 50% of its assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks, known as the Dogs of the Dow strategy. This systematic approach focuses on dividend yield as the primary selection criterion for equity investments. |
Dividend Yield Dogs of the Dow Income DJIA Systematic |
| 2025 Q3 |
DiversificationThe manager emphasizes global diversification as a key strategy, noting that international equities outperformed US stocks by nearly 28% year-to-date, with currency tailwinds contributing roughly a third of returns. The portfolio design aims to balance currency swings as one factor among many rather than the primary driver of outcomes. |
Global Currency International Balance Risk |
VolatilityDespite a 20% market drop earlier in the year following Trump's tariff announcement, US stocks recovered to finish 13% higher year-to-date. The manager reinforces that volatility and setbacks are normal parts of investing, emphasizing the importance of staying invested during market turbulence. |
Market Recovery Timing Patience Resilience | |
Trade PolicyPresident Trump's sweeping tariff plan announced on April 2nd caused significant market disruption, with equity markets plunging before recovering after a 90-day pause was announced. The episode demonstrates how policy uncertainty can create both risks and opportunities in markets. |
Tariffs Policy Uncertainty Recovery Timing | |
| 2024 Q4 |
AIRenewed enthusiasm in the AI trade has driven markets to fresh highs, with large deals announced by OpenAI with Nvidia, Broadcom, Oracle and AMD. However, these deals are somewhat circular in nature and heavily dependent on OpenAI growing and monetising its user base given its limited current revenue. While positive on GenAI potential over the long term, considerable uncertainty remains on the pace and degree of monetisation. |
OpenAI Nvidia Broadcom Oracle AMD |
SemiconductorsSemiconductor demand sentiment was lifted by announcements of several OpenAI partnerships with Oracle, Nvidia and Broadcom. These were positive developments in their potential to drive incremental demand for AI-related chips and manufacturing capacity. However, focus remains on end-market demand dynamics necessary to support these capacity plans, particularly given single-customer concentration. |
TSMC Nvidia Broadcom OpenAI Manufacturing | |
AthleisureAdidas represents a compelling long-term opportunity as a brand with deep heritage and durable competitive advantages. The company has demonstrated resilience through challenging periods including pandemic, geopolitical backlash in China, Russia exit and Yeezy collaboration winding down. Under new leadership, the business has regained strong momentum across key markets with structural growth tailwinds intact. |
Adidas Nike Sportswear Brand Heritage |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Sep 30, 2025 | Fund Letters | Brighton Jones | ADS.DE | Adidas AG | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bull | XETRA | athleisure, athletic apparel, Brand Equity, Consumer Discretionary, Football, Germany, Global Sports, Marketing, Sportswear, turnaround | Login |
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