| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.33% | -8.35% | -8.35% |
The Fairtree Global Equity Fund returned -8.35% in Q1 2026, underperforming its benchmark by 5.15% during a challenging quarter marked by two key themes. First, a broad rotation away from technology and AI-linked equities driven by valuation concerns and competitive uncertainty as AI advances created uncertainty around growth expectations and competitive dynamics. Second, a geopolitical shock from the US-Iran war led to closure of the Strait of Hormuz, spiking energy prices and driving broad market de-risking. The fund used market weakness as an opportunity to add to high-conviction holdings including TSMC, Samsung, Tencent, Kaspi, Impala and Naspers at attractive valuations. New positions were initiated in Prosus and Sasol, the latter to capture improving prospects for oil-linked producers. Notable contributors included TSMC, Samsung and SK Hynix, while Naspers, Tencent and Trip.com detracted. The fund remains overweight Kazakhstan and South Africa while underweight China, India, South Korea and Taiwan. The manager views current conditions as presenting compelling opportunities with valuations derating faster than fundamentals suggest.
Active management approach focused on bottom-up stock selection in global emerging markets, maintaining valuation discipline while capitalizing on market dislocations and geopolitical-driven opportunities.
The manager believes current conditions present a compelling opportunity set, with valuations in several holdings derating faster than underlying business fundamentals would suggest. Periods of sharp rotation, elevated correlations and valuation compression have historically created attractive conditions for active investors. The approach remains valuation disciplined, style agnostic and highly active, continuing to adjust positioning as opportunities evolve and focusing on situations where the risk-reward profile has improved meaningfully.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 6 2026 | 2026 Q1 | 000660 KS, 005930 KS, 0700.HK, IMP.JO, KSPI.L, NPN.JO, PRX.AS, SOL.JO, TCOM, TSM | active management, emerging markets, energy, Geopolitical, technology, valuation | - | Fairtree Global Equity Fund fell 8.35% in Q1 2026 amid tech rotation and geopolitical shock from US-Iran war. Manager used weakness to add to high-conviction holdings at attractive valuations, initiating new positions in Prosus and oil-linked Sasol. Current market dislocation creates compelling opportunity set with valuations derating faster than fundamentals suggest. |
| 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 | - | Fairtree Global Equity Fund underperformed in Q4 2025 despite strong technology positioning, with Alphabet and TSMC contributing while Fiserv and Evolution detracted. The manager rotated from Chinese names into Naspers and added to mega-cap tech positions. The fund maintains technology overweight and emerging market bias, outperforming for the full year despite challenging market concentration dynamics. |
| Nov 3 2025 | 2025 Q3 | 005930.KS, AAPL, AMZN, BABA, BRK-B, CNC, CROX, DHI, EVO.ST, FI, GOOGL, JD, KO, ORCL, V, WKL, ZTS | AI, China, Dollar, emerging markets, global, policy, semiconductors, technology |
GOOG BABA AAPL CNC CROX FISV |
Strong Q3 performance driven by emerging market outperformance, particularly China's 20.7% gain on technology policy support. Fund's overweight China and EM technology positioning proved beneficial while underweight US exposure was a headwind. Portfolio actions focused on quality additions and profit-taking in strong performers, maintaining strategic positioning for continued EM and technology themes. |
| Aug 11 2025 | 2025 Q2 | 000660.KS, 005930.KS, AMAT, AVGO, BP, FI, GFI, GLEN.L, GOOGL, JD, KASPI.L, LOW, MSFT, NVDA, PDD, PGR, ROST, SYY, UNH, VRT | AI, emerging markets, Europe, Global Equity, semiconductors, tariffs, technology, Trade Policy | - | Fairtree Global Equity returned 10.9% amid tariff volatility and EM strength. Technology overweight helped performance while Chinese e-commerce holdings detracted. Fund rotated EM tech exposure, added US tech positions, and initiated new holdings across sectors. Maintains underweight cyclical/defensive positioning with geographic overweight to China tech and Kazakhstan financials despite trade uncertainties. |
| May 21 2025 | 2025 Q1 | ABT, AMZN, AVGO, BABA, BID.JO, BP, EVO.ST, GFI, GOOGL, JD, JPM, KO, KSPI.L, MSFT, NVDA, ORCL, PDD, SHEL, TTE | AI, China, E-Commerce, energy, Global Equity, Recession, tariffs, technology | - | Fairtree Global Equity outperformed by 281bps in Q1 2025 despite tariff-driven market volatility. Chinese e-commerce holdings drove strong returns while AI competition intensified. Manager maintains defensive positioning with cyclical underweights due to US recession risks, higher cash levels, and selective China/Kazakhstan overweights. Energy positions sold as risk-reward deteriorated. |
| Feb 5 2025 | 2024 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AITechnology and AI-linked equities experienced broad-based rotation driven by valuation concerns and competitive uncertainty. Advances in AI increased uncertainty around long-term growth expectations, competitive dynamics and valuation assumptions, leading to rapid and correlated de-risking across technology-related holdings. |
Technology Valuation Competition Growth |
OilThe US-Iran war resulted in closure of the Strait of Hormuz, lifting oil prices materially and adding to concerns around inflation, growth and financial conditions. The fund initiated a new position in Sasol to capture the improving outlook for oil-linked producers following the sharp rise in energy prices. |
Energy Geopolitical Inflation Producers | |
SemiconductorsSemiconductor strength drove emerging market performance in January and February, with South Korea and Thailand benefiting from semiconductor strength. Notable contributors included TSMC, Samsung, and SK Hynix, though the fund maintains structural underweight to TSMC due to position limits. |
Technology Asia Performance Concentration | |
ChinaChina was the largest detractor to relative performance, driven primarily by stock selection. Weakness in Prosus and negative sentiment toward Tencent, alongside broader derating across Chinese technology stocks, weighed on performance. The fund remains underweight China. |
Technology Underweight Sentiment Derating | |
South KoreaSouth Korea was a source of relative weakness despite the MSCI Korea Index rising 26.5% over the quarter. The market came under pressure in March from the war-driven rise in energy prices, given Korea's sensitivity as a large oil-importing economy. |
Energy Sensitivity Volatility Import | |
| 2025 Q4 |
ValuationsUS share markets are trading nearly as expensively as they ever have relative to history. High market valuations are very good at predicting poor long-run investment returns. The manager presents detailed analysis showing negative correlation between P/E ratios and subsequent 10-year returns, with current forward P/E of 25.6 suggesting future returns could be negative. |
P/E Ratios Market Multiples Forward Earnings Historical Analysis |
AIContinued investor excitement around the future potential of Artificial Intelligence dominated the news cycle and contributed to market gains. US company earnings are forecast to grow by 44% over the next three years, driven in large part by investors' expectations for AI companies to start delivering on their lofty targets. |
Artificial Intelligence Earnings Growth Technology Investment Expectations | |
Trade PolicyEarly studies show that roughly 90% of the costs of tariffs are being borne by US consumers and companies, contrary to Trump administration narrative. Tariffs alone added 0.7% to US inflation in 2025 and made the typical US household $600 poorer. This presents a longer-term headwind to the US economy as domestic industries become less competitive over time. |
Tariffs Inflation Consumer Costs Economic Policy | |
EarningsOver calendar year 2025, the US share market delivered earnings per share growth of 12.8%, more than twice the earnings growth seen in 2024 and well above long-run average growth figures. This earnings growth has been largely broad based with many different business sectors doing well, not just an AI story. |
EPS Growth Corporate Performance Broad Based Fundamentals | |
| 2025 Q3 |
ChinaChina rose 20.7% for the quarter, extending its rally on continued policy support particularly targeted at technology and property sectors. The government's ongoing push to expand domestic chip production by 2026 and maintain the US-China trade truce further bolstered investor confidence and lifted export-driven and tech-related equities. |
Policy Support Technology Semiconductors Trade Export |
AIContinued strength in mega cap technology and AI related stocks, particularly in the semiconductor sector, supported US equity performance. China also saw optimism surrounding AI-linked industries as part of the government's technology sector support. |
Technology Semiconductors Mega Cap Growth | |
Emerging marketsEmerging markets extended their strong rally in the third quarter, advancing 10.6%. The outperformance was driven by a weaker US dollar and renewed optimism around country-specific catalysts, including political shifts, greater focus on shareholder returns, and signs of monetary policy turning points across several key economies. |
Dollar Policy Catalysts Outperformance | |
| 2025 Q2 |
AIThe fund maintains significant exposure to AI-related semiconductor demand, particularly through Taiwan positions. AI-driven semiconductor demand continues to drive strong performance in technology holdings, with companies like Nvidia and Broadcom contributing meaningfully to returns. |
Semiconductors Technology Taiwan Nvidia Broadcom |
Trade PolicyTrump's Liberation Day tariff announcements created significant market volatility before being suspended for 90 days. The US economy contracted due to surge in imports ahead of anticipated tariffs. Trade tensions between US and China showed signs of easing, benefiting Taiwan and other Asian markets. |
Tariffs Trump China Volatility Policy | |
Emerging marketsStrong performance from South Korea and Taiwan drove EM gains of 12%. South Korea surged 32.8% on post-election optimism and Value Up reforms. The fund maintains overweight EM technology exposure through Chinese technology shares and Kazakhstan financial shares. |
South Korea Taiwan China Technology Reforms | |
| 2025 Q1 |
AIAI-related US companies experienced pronounced volatility following the release of Deepseek, a Chinese Large Language model trained at significantly lower cost but producing similar results to current US models. Chinese companies' advancements in AI have reinforced their position as a significant force in the technology sector. |
Artificial Intelligence Large Language Models Technology Competition |
E-commerceChinese e-commerce holdings delivered strong performance with Alibaba contributing +143bps, Pinduoduo +76bps, and JD.com +58bps to fund returns. The strong rally in Chinese e-commerce was used to reduce EM technology exposure and redeploy into DM technology names. |
Chinese E-commerce Technology Emerging Markets | |
Trade PolicyUS tariffs continued to weigh on investor sentiment with global markets seeing a sharp downturn in March. March was marked by rapid policy shifts from President Trump, with tariffs driving market concerns and policy uncertainty out of Washington pressuring US equities. |
Tariffs Policy Uncertainty Trade Tensions |
| 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 |
|---|---|
| TSM | Positions were increased in TSMC, where recent share price weakness presented compelling entry points. The portfolio maintains the maximum position limit of 10% per stock, resulting in an unavoidable underweight to TSMC where it represents more than 13% of the benchmark. TSMC was a notable contributor to Fund performance over the quarter (+135 bps absolute and -20 bps relative). |
| 005930.KS | Positions were increased in Samsung, where recent share price weakness presented compelling entry points. Samsung was a notable contributor to Fund performance over the quarter (+102 bps absolute and -38 bps relative). |
| 0700.HK | Positions were increased in Tencent, where recent share price weakness presented compelling entry points. In China, weakness was driven primarily by negative sentiment toward Tencent, alongside a broader derating across Chinese technology stocks. Tencent was a notable detractor (-52 bps absolute and +35 bps relative). |
| KSPI.L | Positions were increased in Kaspi, where recent share price weakness presented compelling entry points. |
| IMP.JO | Positions were increased in Impala, where recent share price weakness presented compelling entry points. |
| NPN.JO | Positions were increased in Naspers, where recent share price weakness presented compelling entry points. Naspers was a notable detractor to Fund performance over the quarter (-102 bps absolute and -91 bps relative). |
| PRX.AS | New positions were initiated in Prosus. In China, weakness was driven primarily by weakness in Prosus and negative sentiment toward its largest underlying asset, Tencent. |
| SOL.JO | New positions were initiated in Sasol, added to capture the improving outlook for oil-linked producers following the sharp rise in energy prices driven by the US-Iran war. |
| 000660.KS | SK Hynix was a notable contributor to Fund performance over the quarter (+34 bps absolute and -12 bps relative). |
| TCOM | Trip.com was a notable detractor (-38 bps absolute and -26 bps relative). |
| 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 | |||
