| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.6% | - | 17.5% |
| 2025 |
|---|
| 17.5% |
EdgePoint Global Portfolio delivered strong performance in 2025 despite significant market volatility, particularly during Liberation Day in April when tariff announcements triggered the third-largest volatility spike since 1987. The firm views volatility as opportunity rather than risk, focusing on owning resilient businesses that serve as margin of safety when investment insights don't materialize as expected. During the volatile period from February to mid-April, EdgePoint actively traded over a quarter of the portfolio, buying quality businesses like Thermo Fisher Scientific at bargain prices and doubling down on existing holdings that sold off more than fundamentals justified. The strategy of maintaining price discipline while waiting for proprietary insights to play out was demonstrated through the Lincoln Electric investment, which generated a 17.4% IRR despite the EV charging thesis not materializing due to bureaucratic delays. EdgePoint's contrarian approach was validated when investors provided the largest dollar inflows in company history during the market's worst days, demonstrating strong alignment and confidence in the long-term strategy.
EdgePoint capitalizes on market volatility by owning resilient businesses that can grow through any macro environment, using proprietary insights to buy quality companies at discounted prices when fear drives irrational selling behavior.
EdgePoint will continue working to maintain investor trust and help clients reach their financial goals regardless of new tail risks the market presents in 2026.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 19 2026 | 2025 Q4 | ALFA.ST, LECO, ROG.SW, TMO | contrarian, global, Quality, Resilience, risk management, value, volatility |
TMO LII RHHBY ALFVY |
EdgePoint views volatility as a feature of the market, not a bug to be managed away. The firm capitalizes on volatility-driven fear and irrational investor behaviors like panic selling to buy great businesses from sellers who don't understand true value. During the April 2025 Liberation Day volatility spike, EdgePoint moved over a quarter of the Global Portfolio in six weeks, buying businesses at bargain prices. EdgePoint focuses on owning businesses resilient enough to grow through any macro environment and come out stronger. This resilience serves as their margin of safety when investment insights don't play out as expected. The firm believes resilient base businesses protect against permanent loss of capital even when proprietary insights take longer than expected or don't materialize. EdgePoint defines risk as permanent loss of capital rather than volatility. The firm maintains confidence to buy when others are selling during uncertain periods. During April 2025's market stress, EdgePoint experienced its largest dollar inflows in company history on the two worst down days, demonstrating strong investor risk appetite and alignment. |
| Oct 19 2025 | 2025 Q3 | - | Active Share, AI, small caps, technology, valuation |
AMA SM TE Connectivity plc SAP SE Mattel Inc. Franco-Nevada Corporation |
EdgePoint argues that many global equity funds have become closet indexers, reducing true active management. The fund emphasizes smaller, underfollowed companies that can compound over time and outperform larger peers. It warns that current enthusiasm around AI mirrors past technology bubbles where overinvestment and consolidation eroded future returns. |
| Jun 30 2025 | 2025 Q2 | - | capital structure, cash flow, credit, downside protection, Margin Of Safety | - | The commentary emphasizes credit investing with a primary focus on avoiding permanent capital loss. Margin of safety, capital structure positioning, and improving business fundamentals are central to security selection. Volatility is embraced as a source of mispricing rather than risk. |
| Apr 15 2025 | 2025 Q1 | 4612 JP, 669 HK, DAY, G9N GR, ROG SW, RVTY | - | - | |
| Jan 16 2025 | 2024 Q4 | FFH CN, SAP GR | - | - | |
| Oct 22 2024 | 2024 Q3 | - | - | - | |
| Jul 17 2024 | 2024 Q2 | - | - | - | |
| Apr 17 2024 | 2024 Q1 | BERY, NSC | - | - | |
| Jan 16 2024 | 2023 Q4 | - | - | - | |
| Oct 16 2023 | 2023 Q3 | - | - | - | |
| Jul 13 2023 | 2023 Q2 | - | - | - | |
| Apr 17 2023 | 2023 Q1 | BERY, CSX, DE, MC FP, QSR, TSLA | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Resilience2025 tested the fund's thesis severely with a bankruptcy, major customer losses, and cyber-attacks, yet delivered 17.45% net returns. The manager emphasizes that edge comes from exploiting inefficiency rather than avoiding adversity, demonstrating portfolio resilience through active management. |
Adversity Active Management Drawdowns Volatility |
Risk AppetiteManager emphasizes disciplined risk management through cycle awareness rather than market timing. Fund maintains cash cushion during high-risk periods and deploys capital countercyclically. Approach focuses on behavioral edge by having cash available when fear creates best entry points and avoiding leverage that leads to forced selling. |
Leverage Cash Volatility Positioning Discipline | |
VolatilityMarket volatility in spring 2025 triggered by trade tariff uncertainty led to a broad sell-off, with strategies down over 23% year-to-date at the trough. The manager used this volatility to add exposure at attractive prices during the decline. |
Market volatility Sell-off Opportunity Exposure Timing | |
| 2025 Q3 |
Technology |
|
| 2025 Q2 |
CreditFund focuses on elevated carry in high yield credit markets with spreads remaining range bound below 300 basis points. Manager believes high yield credit is fundamentally strong but valuations are tight, particularly in higher quality BBs. Strategy emphasizes sourcing positions with higher income levels given limited price appreciation opportunities. |
High Yield Credit Spreads Carry Investment Grade |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 19, 2025 | Fund Letters | George Droulias | AMA SM | Amadeus IT Group, S.A. | Financials | Software & Services | Bull | Brasil Bolsa Balcão | Airlines, Digitalization, Hotels, infrastructure, It, Software, Travel | Login |
| Oct 19, 2025 | Fund Letters | George Droulias | TE Connectivity plc | TEL | Industrials | Electrical Components & Equipment | Bull | NYSE | automotive, Electrification, FCF, growth, Industrials, Sensors, technology | Login |
| Oct 19, 2025 | Fund Letters | George Droulias | SAP SE | SAP | Information Technology | Application Software | Bull | NYSE | Automation, cloud, enterprise, ERP, recurring revenue, SaaS, Software | Login |
| Oct 19, 2025 | Fund Letters | George Droulias | Mattel Inc. | MAT | Consumer Discretionary | Leisure Products | Bull | NASDAQ | brands, consumer, entertainment, Ip, Licensing, Margins, Toys | Login |
| Oct 19, 2025 | Fund Letters | George Droulias | Franco-Nevada Corporation | FNV | Materials | Precious Metals & Mining | Bull | NYSE | cashflow, diversification, Gold, inflation hedge, Margins, Mining, Royalty | Login |
| Jan 19, 2026 | Fund Letters | George Droulias | TMO | Thermo Fisher Scientific Inc. | Health Care | Life Sciences Tools & Services | Bull | New York Stock Exchange | cashflow, compounding, lifesciences, scale, Volatility | Login |
| Jan 19, 2026 | Fund Letters | George Droulias | LII | Lincoln Electric Holdings, Inc. | Industrials | Industrial Machinery | Bull | NASDAQ | Automation, Capitalreturns, Industrials, Marginofsafety, resilience | Login |
| Jan 19, 2026 | Fund Letters | George Droulias | RHHBY | Roche Holding AG | Health Care | Pharmaceuticals | Bull | Swiss Exchange | cashflow, diagnostics, pharma, pipeline, Volatility | Login |
| Jan 19, 2026 | Fund Letters | George Droulias | ALFVY | Alfa Laval AB | Industrials | Industrial Machinery | Bull | NASDAQ | compounding, efficiency, Electrification, Industrials, Volatility | Login |
| TICKER | COMMENTARY |
|---|---|
| ALFA.ST | We also doubled down on existing Portfolio companies that had sold off by more than any change in the underlying business justified (e.g., Roche Holdings AG, Alfa Laval AG). |
| LECO | Lincoln Electric did exactly what it always did. It managed through the uncertainty with the same playbook it has used for the last 100 years. It bought back shares, grew the automation business by acquiring complementary companies, expanded the growth runway in 3D printing by signing long-term contracts with the U.S. Department of Defense to 3D print critical components and continued to deliver margin expansion without needing the revenue from the chargers. We exited Lincoln Electric earlier in 2025 with an IRR of 17.4%. |
| ROG.SW | Top gainers among the Fund's holdings included Roche (+27%) |
| TMO | Thermo Fisher Scientific was a strong contributor with 8.69% ending weight and 1.47% contribution. |
| 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 | |||
