| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 1.7% | - |
The Fairtree Global Equity Fund returned 1.66% in Q4 2025, underperforming its benchmark by 1.64% as the MSCI ACWI rose 3.29%. The fund benefited from strong performance in technology and AI-related stocks, with notable contributions from Alphabet, TSMC, and Impala. However, detractors including Fiserv, Evolution Gaming, and Microsoft weighed on relative performance. Portfolio actions included switching Chinese holdings Alibaba and Pinduoduo into Naspers, while adding to Meta, Nvidia, and Amazon positions. New positions were initiated in Automatic Data Processing, Philip Morris, Renesas Electronics, and Harmony. The fund maintains an underweight position in cyclical names while favoring technology exposure, and remains geographically underweight in the US and Canada while overweight in Kazakhstan and South Africa. Despite quarterly underperformance, the fund outperformed its benchmark by 2.27% for the full year 2025, demonstrating resilience in a market characterized by extreme concentration where only 30% of S&P 500 stocks outperformed the index.
The fund maintains a concentrated approach focused on technology exposure while remaining underweight cyclical names, with geographic diversification favoring emerging markets over developed markets despite narrow market breadth challenges.
Investor sentiment shifted from optimism earlier in the quarter to a more cautious, but constructive stance toward year-end, reflecting moderating macroeconomic conditions and gradual cooling in economic activity.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 10 2026 | 2025 Q4 | 6723.T, AAPL, ADP, AMAT, AMZN, BABA, ELV, EVO.ST, FI, GOOGL, HAR.JO, IMP.JO, MC.PA, META, MSFT, NPN.JO, NVDA, PDD, PM, TSM | AI, emerging markets, global, rates, semiconductors, technology | - | AI-related stocks continued to show strength, with mega-cap technology and AI-related names benefiting early in the quarter. South Korean equities gained from improving sentiment around the global electronics and AI cycle, while semiconductor stocks maintained momentum. Semiconductor stocks performed well, particularly in South Korea where they benefited from improving sentiment around the global electronics and AI cycle. TSMC was a notable contributor to fund performance. The Federal Reserve delivered a further 50bp rate cut over the quarter, lowering the federal funds target range to 3.50%-3.75%. Lower global interest rates supported South African equities and contributed to improving macro conditions. |
| Nov 3 2025 | 2025 Q3 | - | China Equities, Policy Support, semiconductors, South Africa Equities, usd |
GOOG BABA AAPL CNC CROX FISV |
AI: Mega-cap tech and semiconductors powered developed-market gains alongside a softer USD and strong U.S. prints. Emergingmarkets: China and South Africa led double-digit EM gains on policy support, commodities, and improving sentiment. Positioning: Underweight cyclicals and DM tech, overweight EM tech, with active trims to winners and selective new positions. |
| Aug 11 2025 | 2025 Q2 | - | Global Equities, monetary policy, Rotation, technology, Valuations | - | The commentary emphasizes global equity rotation driven by tariffs, monetary policy divergence, and fiscal stimulus, particularly in Europe and parts of emerging markets. Management highlights selective exposure to technology and valuation-driven opportunities outside the U.S. Sector and geographic allocation remain key return drivers. |
| May 21 2025 | 2025 Q1 | - | - | - | |
| Feb 5 2025 | 2024 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
RatesFederal Reserve resumed rate-cutting cycle with first cut since December 2024, signaling resumption of easing. Expected three cuts of 25bps between now and first quarter 2026 as Fed responds to signs of weakness in US labor market. |
Fed Monetary Policy Labor Market Easing Liquidity | |
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 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
| 2025 Q2 |
Rotation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cashflow, cloud, growth, innovation, Margins, Regulation, Search, YouTube | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | BABA | Alibaba Group Holding Limited | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NYSE | AI, buybacks, China, cloud, e-commerce, growth, profitability, recovery, retail, valuation | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | Brand, buybacks, cashflow, consumer, Ecosystem, growth, Hardware, Margins, services | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | CNC | Centene Corporation | Health Care | Managed Health Care | Bear | NYSE | guidance, healthcare, Insurance, Margins, Medicaid, Regulation, Risk, Utilization | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | CROX | Crocs Inc. | Consumer Discretionary | Footwear | Bear | NASDAQ | consumer, Cyclicality, Demand, Footwear, Inventory, Margins, retail, valuation | Login |
| Nov 3, 2025 | Fund Letters | Cornelius Zeeman | FISV | Fiserv Inc. | Other | Data Processing & Outsourced Services | Bear | NASDAQ | diversification, Fintech, growth, guidance, Integration, Merchant, Payments, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| 6723.T | New positions were initiated in Renesas Electronics |
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| ADP | New positions were initiated in Automatic Data Processing |
| AMAT | Top gainers in the Fund this quarter included Applied Materials (+26%). During the quarter, we trimmed the Fund's holding in Applied Materials as it rallied |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| BABA | Alibaba was a detractor during the quarter after the company reported mixed fiscal Q2 results. While cloud revenue growth accelerated and margins remained stable, the core commerce business struggled with slowing growth and significant profit pressure, particularly in the quick commerce segment where heavy investment and intense competition led to a sharp decline in profitability. |
| ELV | The holdings in Applied Materials, Elevance Health, LVMH and Anheuser-Busch InBev were exited |
| EVO.ST | Evolution (-40bps absolute and relative) |
| FI | Notable detractors from performance came from Fiserv (-43bps absolute and -39bps relative) |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| HAR.JO | New positions were initiated in Harmony |
| IMP.JO | Impala (+28bps absolute and relative) |
| MC.PA | Top gainers among the Fund's holdings included LVMH (+24%) |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NPN.JO | Naspers performed strongly during the year, gaining alongside their holding in Tencent, which in addition to reporting robust results has benefitted from improved sentiment towards Chinese stocks, as well as an improving outlook for its eCommerce portfolio, which continues to perform strongly. The company continues to execute on its value-accretive open-ended buyback program at both Prosus and Naspers. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| PDD | weakest performers included PDD (-14%) |
| PM | New positions were initiated in Philip Morris |
| 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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