| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.4% | -3.3% | 2.6% |
| 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| 2.6% | 7.5% | 19.3% | -13.7% | 26.3% |
Cooper Investors delivered -3.3% quarterly returns and 2.6% annual returns in 2025, underperforming the MSCI AC World Index due to concentrated market performance favoring the largest 10 companies. The fund maintains high conviction in individual holdings despite elevated market valuations, having refreshed over half the portfolio into new investments. Key contributors included TKO Holdings, up 80% over one year on strong sports media rights demand from streaming platforms, and TSMC, benefiting from AI-driven semiconductor demand with 30% annual EPS growth. Detractors included Ryan Specialty navigating soft insurance pricing and freee K.K. despite strong fundamentals. The manager emphasizes their index-unaware approach targeting companies with material value latency and operational momentum. With markets trading at 20-year high FCF multiples, they expect returns to normalize over 3-5 year horizons while maintaining conviction in portfolio holdings' ability to deliver differentiated risk-adjusted returns through operational excellence and strategic positioning.
Cooper Investors runs an index-unaware global equity portfolio focused on companies with material value latency and operational momentum, seeking superior risk-adjusted returns over 3-5 year investment horizons despite current elevated market valuations.
Given market backdrop with exceptionally strong recent returns and elevated valuations, manager expects investment returns to follow three-to-five year time horizon at aggregate portfolio level. High conviction that individual investments have material upside with operational momentum to deliver superior risk-adjusted returns differentiated from broader market over medium term.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 4 2026 | 2025 Q4 | 4478.T, FWONK, RYAN, TKO, TSM | Global Equities, growth, semiconductors, Sports Content, technology, value |
TKO TSM RYAN 4478 JP |
TKO Holdings owns UFC and WWE content assets, benefiting from increased demand for sports media rights from streaming platforms. The company has renewed major media… |
| Oct 14 2025 | 2025 Q3 | BME LN, CME, G24 GR, GEHC, TKO | Derivatives, infrastructure, Quality, risk management, software |
CME G24 TKO |
Cooper Investors highlights steady returns despite diverging from tech-heavy benchmarks. The portfolio emphasizes high-quality niche businesses like Bentley Systems that support global infrastructure projects and… |
| Jun 30 2025 | 2025 Q2 | BME LN, CDW, G24 GR, TKO | cash flow, inflation protection, Pricing Power, real assets, royalties |
G24 GR TKO BME LN CDW |
The letter emphasizes real assets and asset-light franchises with durable economics and low correlation to financial markets. Royalty businesses and unique content platforms are highlighted… |
| Mar 31 2025 | 2025 Q1 | BME LN, RYAN, TSM, UMGP | - | - | - |
| Jan 14 2025 | 2024 Q4 | AHT LN, BKNG, ERF FP, FWONK, RYAN | - | - | - |
| Sep 30 2024 | 2024 Q3 | ERF, FYBR, GOOG, RTO, TKO | - | - | - |
| Jul 15 2024 | 2024 Q2 | AON, GEHC, GOOG, LPX, RTO, SONY, TSM, YUMC | - | - | - |
| May 1 2024 | 2024 Q1 | AER, CME, DHR, ERF FP, LPX | - | - | - |
| Jan 15 2024 | 2023 Q4 | 8035 JP, GEHC, GISOX, HLN | - | - | - |
| Dec 10 2023 | 2023 Q3 | AHT LN, COST, FER SM, HLMA, UNICY, UNP, URI, YUMC | - | - | - |
| Jul 22 2023 | 2023 Q2 | CDW, TSMC34 BZ | - | - | - |
| Apr 18 2023 | 2023 Q1 | 7741 JP, BKNG, LSEG LN, RTO, SNPS | - | - | - |
| Oct 10 2022 | 2022 Q3 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Live SportsTKO Holdings owns UFC and WWE content assets, benefiting from increased demand for sports media rights from streaming platforms. The company has renewed major media deals at rates well above previous agreements and continues growing sponsorship business. Boxing venture Zuffa represents significant long-term opportunity given boxing's broader appeal compared to UFC. |
UFC WWE Boxing Media Rights Streaming |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
| 2025 Q3 |
Quality Growth |
|
SoftwareSoftware is the portfolio's largest industry exposure on both absolute and relative basis. The manager views prospects of select software companies as highly compelling, citing sticky customer bases, recurring revenues, and predictable businesses. Major purchases included Workday and Salesforce, which trade at discounts to their own history despite being higher quality businesses. |
SaaS Enterprise Software Recurring Revenue Cloud Technology | |
| 2025 Q2 |
Assets |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 14, 2025 | Fund Letters | Peter Cooper | TKO | TKO Group Holdings Inc. | Communication Services | Media & Entertainment | Bull | NYSE | Distribution, Flywheel, live events, Sponsorships, Sports-rights, Streaming | Login |
| Jun 30, 2025 | Fund Letters | Peter Cooper | G24 GR | Scout24 SE | Communication Services | Interactive Media & Services | Bull | - | growth, Margins, marketplace, Property, restructuring | Login |
| Jun 30, 2025 | Fund Letters | Peter Cooper | TKO | TKO Group Holdings, Inc. | Communication Services | Movies & Entertainment | Bull | NYSE | Events, media, Monetisation, rights, sports | Login |
| Jun 30, 2025 | Fund Letters | Peter Cooper | BME LN | B&M European Value Retail S.A. | Financials | General Merchandise Stores | Bear | NYSE | Execution, Margins, retail, Risk, Value | Login |
| Jun 30, 2025 | Fund Letters | Peter Cooper | CDW | CDW Corporation | Information Technology | IT Consulting & Other Services | Bear | NASDAQ | Cyclicality, Hardware, It, Risk, spending | Login |
| Feb 4, 2026 | Fund Letters | Peter Cooper | TKO | TKO Group Holdings Inc | Communication Services | Movies & Entertainment | Bull | New York Stock Exchange | Content, media, monetization, Sports-rights, Streaming | Login |
| Feb 4, 2026 | Fund Letters | Peter Cooper | TSM | Taiwan Semiconductor Manufacturing Co Ltd | Information Technology | Semiconductor Manufacturing | Bull | New York Stock Exchange | AI, Complexity, Foundry, HPC, semiconductors | Login |
| Feb 4, 2026 | Fund Letters | Peter Cooper | RYAN | Ryan Specialty Group Holdings Inc | Financials | Insurance Brokers | Bull | New York Stock Exchange | Brokerage, Cyclicality, Eands, Execution, Insurance | Login |
| Feb 4, 2026 | Fund Letters | Peter Cooper | 4478 JP | freee K.K. | Information Technology | Application Software | Bull | New York Stock Exchange | Demographics, Freecashflow, Margins, productivity, SaaS | Login |
| Oct 14, 2025 | Fund Letters | Peter Cooper | CME | CME Group Inc. | Financials | Financial Exchanges & Data | Bull | NASDAQ | Derivatives, dividend, Exchanges, Liquidity, Margins, network effects, Volatility | Login |
| Oct 14, 2025 | Fund Letters | Peter Cooper | G24 | Scout24 SE | Communication Services | Interactive Media & Services | Bull | - | Classifieds, International, Margins, marketplace, Pricing, Real Estate | Login |
| TICKER | COMMENTARY |
|---|---|
| 4478.T | freee K.K. is a Japanese software company primarily focused on providing accounting and HR-related tools to small businesses and sole proprietors (akin to a Japanese version of Xero). Today we see a de-risked opportunity – freee's best-of-breed cloud offering has achieved 10% market share, it continues to grow revenues above 20% p.a., and the business has now reached a scale such that it is sustainably cash flow positive. When compared to today's ¥160B Enterprise Value, we can only conclude that the shares are very cheap. We visited the co-founders and senior management team in Tokyo in mid-December where the meetings supported our analysis. |
| FWONK | The portfolio currently holds investments in two sports content assets – TKO Holdings (TKO) and Liberty Formula One (FWONK). Liberty Media announced it had completed the acquisition of MotoGP, meaning the company behind Formula 1's transformation now owns the world's premier motorcycle racing series. Liberty is seeking to execute their F1 playbook: accelerating growth markets, growing the casual fan base and improving monetisation. The US represents one of their most important growth markets. Currently, America hosts just one of 22 annual MotoGP events, and the broader Americas accounts for only 4% of MotoGP's media rights revenue. The growth potential is enormous – achieving 40% of Europe's media rights would create ~$1.5 billion of value. |
| RYAN | Ryan Specialty Holdings, Inc. is a commercial excess and surplus insurance broker with a delegated authority business. The company was founded by Pat Ryan in 2010. Pat Ryan is one of the insurance industry's crucial pioneers, having also founded Aon where he served as the CEO and Chairman for 41 years. The excess and surplus market has grown at an 11% CAGR while the admitted market has grown at a 4% CAGR over the last 25 years. The portion of Ryan Specialty's business exposed to commercial property is entering a soft pricing cycle, which has pushed the stock well below intrinsic value. |
| TKO | TKO Group was a positive contributor in the quarter. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
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