| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The Esk Global Equity Fund delivered positive returns in Q2 2026 but lagged headline indices due to its diversified approach in an AI-dominated market. While maintaining selective semiconductor exposure through Nvidia, Broadcom, and Taiwan Semiconductor, the manager prioritized risk management over chasing concentrated AI gains. The fund actively diversified during the quarter, adding ExxonMobil at attractive oil price levels, Amphenol for industrial technology exposure, and Franco-Nevada for gold exposure without direct mining risk. Oracle was sold due to balance sheet concerns around data center competition, Intuit exited after AI disruption fears materialized, and Kraft-Heinz sold following abandoned demerger plans. Bank holdings including Sumitomo Mitsu Financial, Standard Chartered, and Morgan Stanley were top performers, benefiting from higher rates and trading activity. The manager expects rates to remain structurally elevated, supporting bank profitability. Insurance holdings face near-term pressure from declining premiums and overcapacity but are viewed as best-in-breed positions for the eventual cycle turn. The approach emphasizes long-term quality and diversification over short-term momentum capture.
Deliver long-term growth through a diversified portfolio of the highest quality global businesses while maintaining disciplined risk management, accepting that this approach may lag in periods of market exuberance but provides downside protection in tougher times.
The manager expects to maintain disciplined risk management and diversified positioning rather than chase AI-driven returns. They anticipate structurally higher interest rates to persist, benefiting bank holdings, and expect the insurance cycle to eventually turn in favor of their reinsurance positions. The tone is patient and selective, emphasizing long-term quality over short-term momentum.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 3 2026 | 2026 Q2 | 8316.T, APH, AVGO, BRK/B, EG, FNV, INTU, KHC, MS, NVDA, ORCL, SREN.SW, STAN.L, TSM, XOM | AI, banks, diversification, energy, insurance, risk management, semiconductors | - | Esk delivered positive returns but lagged AI-driven indices due to deliberate diversification. The fund added energy, industrial, and gold exposure while trimming software names facing AI disruption. Bank holdings outperformed on higher rates and trading volumes, with the manager maintaining elevated weights. Insurance positions face cyclical pressure but are held for quality through the downturn. Disciplined risk management trumps momentum chasing. |
| Apr 1 2026 | 2026 Q1 | NEM.DE, NGTG.T | AI, defense, global, growth, Japan, small caps, software | - | Human Capital Fund down 13% in Q1 2026 as Middle East conflict pressured small-cap growth stocks. Despite volatility, portfolio companies show strong fundamentals with 19% earnings growth in 2025 and 12% expected in 2026. Added Japanese business acquirer NGTG and German software firm Nemetschek at attractive valuations during market weakness. |
| Oct 30 2025 | 2025 Q3 | 9424.T, BERG-B.ST, CHAP.DE, CICN.SW, CSU.TO, DPLM.L, INDU.ST, JDG.L, KPG.AX, LAGR-B.ST, LIFCO-B.ST, LMN.TO, MGRP.ST, PMS, SIS.TO, TOI.TO | Acquisitive, Decentralised, global, Mid-cap, small caps, value | - | Church House Human Capital fell 4.6% in Q3 despite adding four promising global investments. Weakness driven by Judges Scientific funding cuts, Constellation Software CEO retirement impact, and mid-cap derating. Manager actively buying quality businesses at attractive levels, maintaining conviction in entrepreneurial acquirers overlooked by Magnificent Seven-focused markets. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIThe fund acknowledges AI-driven market gains concentrated in semiconductors. Maintains selective exposure through Nvidia, Broadcom, and Taiwan Semiconductor but emphasizes disciplined risk management over chasing short-term AI returns. The manager views AI excitement as requiring caution rather than aggressive positioning. |
Semiconductors Data Centers Nvidia Broadcom |
DiversificationThe fund actively sought to further diversify exposure during the quarter, adding three new positions across energy, industrials, and precious metals while exiting three holdings. This reflects a deliberate strategy to reduce concentration risk in an AI-dominated market and maintain broad sector exposure. |
Risk Management Portfolio Construction Sector Exposure | |
OilExxonMobil was added to the portfolio for the first time since 2019 after oil prices retreated to what the manager views as a reasonable level. The manager sees this as an attractive entry point into a business with strategically valuable producing oil fields in the US and Gulf of Mexico. |
Energy ExxonMobil Oil Prices | |
GoldThe fund introduced Franco-Nevada Corporation to gain exposure to gold prices through royalty rights rather than direct mining operations. This structure provides precious metal exposure without the asset-intensive risks of owning miners directly, suggesting a positive but risk-managed view on gold. |
Precious Metals Gold Royalties Franco-Nevada | |
Investment BanksBank holdings including Sumitomo Mitsu Financial, Standard Chartered, and Morgan Stanley were top performers and are climbing the list of largest holdings. These businesses benefit from higher interest rates on lending and increased trading activity. The manager expects rates to remain structurally higher and views this as a lucrative time to be a bank. |
Banks Interest Rates Trading Activity | |
ReinsuranceInsurance names Everest Group, Swiss Re, and Berkshire Hathaway remain under pressure from declining premiums and latent overcapacity in several risk markets. However, the manager views these three as best in breed and well capitalized for when the cycle turns, noting this is not their first rodeo. |
Insurance Premiums Capacity Cycle | |
| 2026 Q1 |
DefenseThe Middle East conflict has created harsh conditions for small and medium-sized businesses globally, which is the focus area of the Human Capital Fund. Defense companies have been beneficiaries of escalating hostilities, with demand sadly high and unlikely to abate soon. |
Defense Geopolitical Conflict |
AIConcerns around AI capabilities from Anthropic continued to weigh on software-as-a-service stocks. The broad software sell-off at the start of the year provided opportunities to revisit businesses like Nemetschek at more attractive valuations after previously being too expensive at 40x earnings. |
AI Software Valuation | |
Small CapsThese conditions have proven particularly harsh for small and medium sized businesses worldwide, which is the area where the Human Capital Fund is focused. The market will go through periods when certain themes are in or out of favour, similar to 2022 when quality-growth came under pressure. |
Small Caps Quality Growth | |
| 2025 Q3 |
Small CapsThe fund focuses on entrepreneurial, acquisitive, decentralised businesses that are being overlooked as markets remain fixated on the Magnificent Seven. The manager sees this as creating opportunities in smaller companies with strong fundamentals. |
Mid-cap Decentralised Entrepreneurial Acquisitive Overlooked |
Defense SpendingThe fund added exposure to increased European defence spending through Cicor's acquisition of defence assets. The manager notes this is sadly a big growth area given current geopolitical tensions. |
European Defence Growth Geopolitical Assets |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| NVDA | We applaud these semiconductor names for their innovation and growth and have exposure to the space through our investments in Nvidia, Broadcom and Taiwan Semiconductor, but are not about to throw caution to the wind when it comes to suitable risk management to chase short-term returns. |
| AVGO | We applaud these semiconductor names for their innovation and growth and have exposure to the space through our investments in Nvidia, Broadcom and Taiwan Semiconductor, but are not about to throw caution to the wind when it comes to suitable risk management to chase short-term returns. |
| TSM | We applaud these semiconductor names for their innovation and growth and have exposure to the space through our investments in Nvidia, Broadcom and Taiwan Semiconductor, but are not about to throw caution to the wind when it comes to suitable risk management to chase short-term returns. |
| XOM | ExxonMobil, the oil major, returns to the Fund for the first time since 2019. With the oil price having retreated to what we see as a reasonable level, we see this as an attractive entry point into a business sitting on producing oil fields in the US and Gulf of Mexico that have key strategic global value. |
| APH | Amphenol also comes in, the US-listed manufacturer of electrical interconnectors and sensors used in a huge range of applications, from drones, to electronic vehicles, to data centres. |
| FNV | Finally, we introduced a position in Franco-Nevada Corporation, who provide funding to precious metal miners in returned for royalty rights. This gives Esk exposure to the gold price, without the asset-intensive risk attached to owning a miner directly. |
| ORCL | We sold Oracle which had been in the Fund since 2011 and generated handsome returns as we feel they are now overstretching their balance sheet to keep up with their larger rivals in data centre build-out. |
| INTU | Intuit, held since 2019, goes after disappointing results failed to disprove naysayers that think that AI will replace their software-based business model. |
| KHC | We sold our small position in Kraft-Heinz. We purchased Kraft-Heinz last year because we felt shares were undervalued and saw the upcoming break-up of the business into two as a catalyst for upward re-rating – management subsequently halted demerger plans and so we saw no reason to remain holders. |
| 8316.T | Aside from the Tech sector, our top performers in 2026 have been our bank holdings, with Sumitomo Mitsu Financial, Standard Chartered and Morgan Stanley all rightfully climbing up the list of our largest holdings. These businesses are benefitting from both higher interest rates on their lending and more trading activity on the investment bank side. |
| STAN.L | Aside from the Tech sector, our top performers in 2026 have been our bank holdings, with Sumitomo Mitsu Financial, Standard Chartered and Morgan Stanley all rightfully climbing up the list of our largest holdings. These businesses are benefitting from both higher interest rates on their lending and more trading activity on the investment bank side. |
| MS | Aside from the Tech sector, our top performers in 2026 have been our bank holdings, with Sumitomo Mitsu Financial, Standard Chartered and Morgan Stanley all rightfully climbing up the list of our largest holdings. These businesses are benefitting from both higher interest rates on their lending and more trading activity on the investment bank side. |
| EG | Our insurance names Everest Group, Swiss Re and Berkshire Hathaway remain under pressure from declining premiums and latent overcapacity in several of their risk markets. We continue to see these three as best in breed and well capitalised from when the cycle does turn – this is not their first rodeo. |
| SREN.SW | Our insurance names Everest Group, Swiss Re and Berkshire Hathaway remain under pressure from declining premiums and latent overcapacity in several of their risk markets. We continue to see these three as best in breed and well capitalised from when the cycle does turn – this is not their first rodeo. |
| BRK.B | Our insurance names Everest Group, Swiss Re and Berkshire Hathaway remain under pressure from declining premiums and latent overcapacity in several of their risk markets. We continue to see these three as best in breed and well capitalised from when the cycle does turn – this is not their first rodeo. |
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