| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Andrew Flattery advocates for balancing contrarian thinking with market sensibility, using John Mayer's musical evolution as an analogy for successful investing. The Core Individual Stock portfolio returned 1.54% in 2025 versus the S&P 500's 18%, with underperformance driven primarily by high-conviction bitcoin exposure through MicroStrategy, which declined 47.53%. However, several positions delivered strong returns including AST SpaceMobile up 245%, Heico up 36%, and Sprott Physical Gold and Silver Trust up 90% as gold surged 65%. The manager maintains conviction in bitcoin as institutional adoption advances through spot ETFs and corporate treasury strategies. AI represents a transformative gunpowder moment enabling smaller players to compete with enterprises, though institutional investors currently show zero interest in non-AI deals. The portfolio combines contrarian bets like bitcoin and space economy exposure with quality family businesses that compound value through disciplined capital allocation. Despite 2025's underperformance, the manager expects holdings to perform well over 3-5 years based on strong fundamentals rather than attempting to forecast specific market movements.
Thread the needle between contrarian thinking and market sensibility by combining high-conviction idiosyncratic bets like bitcoin with quality businesses that have strong fundamentals and durable competitive advantages, aiming to compound wealth over the long term while minimizing permanent loss of capital.
The manager expects holdings will do well over the next 3-5 years based on companies with strong fundamentals, rational capital allocation, and ability to compound value over time, though the path won't be linear. No specific 2026 forecast is provided, with the manager preferring to focus on evaluable fundamentals rather than Wall Street predictions.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 30 2026 | 2025 Q4 | ASTS, CASY, CEF, CPRT, DE, GRMN, HEI, MSTR, RACE, RMS, SEB | AI, Bitcoin, contrarian, crypto, gold, Multi-baggers, Quality, Space |
MSTR ASTS HEI CEF |
Bitcoin functions as scarce, portable, digital gold gaining institutional traction as a hedge against currency debasement. MicroStrategy operates as the leader in pioneering corporate bitcoin… |
| Jan 23 2025 | 2024 Q4 | MSTR | Bitcoin Adoption, Concentrated Investing, Conviction Investing, Founder Alignment, Long-Term Compounding | - | The letter reflects on a highly successful year driven by concentrated, bottom-up investing and the mainstream institutional adoption of bitcoin as a legitimate asset class.… |
| Jan 15 2024 | 2023 Q4 | - | Active Investing, asymmetric returns, Bitcoin Exposure, Concentrated Portfolios, Long-Term Compounding | - | The letter argues that long term wealth creation favors optimistic, forward looking investors willing to deviate from passive consensus and embrace active decision making. The… |
| 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 |
CryptoFund focuses exclusively on Bitcoin accumulation through disciplined cycle-aware positioning. Manager shifted to defensive posture in Q3 anticipating correction, ending Q4 with two-thirds Bitcoin and one-third cash. Going forward, fund will hold only Bitcoin based on data showing altcoins have terrible odds with only 1-in-70 beating Bitcoin historically. |
Bitcoin Altcoins Cycles Accumulation Volatility | |
GoldGold returned +65% in dollars in 2025, driven by broadening demand from central banks, professional and retail investors. Central banks now hold 24% of reserves in gold versus 23% in US Treasuries for the first time. Maintained 12% portfolio allocation throughout the year. |
Central Banks Reserves Diversification Demand | |
SpaceSpaceX is generating significant value with rapid expansion of Starlink broadband service, deploying vast satellite constellation with substantial user growth. The company has established itself as leading launch provider with reusable technology and is making tremendous progress on Starship rocket. SpaceX represents the fund's largest position at 19.2% of net assets. |
Satellites Launch Starlink Starship Reusable | |
| 2024 Q4 |
Bitcoin |
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Compounding |
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Conviction |
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| 2023 Q4 |
Active Investing |
|
Compounding |
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Optimism |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 30, 2026 | Fund Letters | Andrew Flattery | HEI | HEICO Corporation | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Acquisitions, Aerospace, compounder, Defense, Margins | Login |
| Jan 30, 2026 | Fund Letters | Andrew Flattery | CEF | Sprott Physical Gold and Silver Trust | Financials | Asset Management | Bull | New York Stock Exchange | diversification, Gold, Hedging, inflation, Silver | Login |
| Jan 30, 2026 | Fund Letters | Andrew Flattery | MSTR | Strategy Inc. (formerly MicroStrategy, Inc.) | Information Technology | Application Software | Bull | NASDAQ | Bitcoin, Capital markets, Digital Gold, leverage, Volatility | Login |
| Jan 30, 2026 | Fund Letters | Andrew Flattery | ASTS | AST SpaceMobile, Inc. | Communication Services | Wireless Telecommunications | Bull | NASDAQ | infrastructure, Optionality, Satellites, Space, Telecom | Login |
| TICKER | COMMENTARY |
|---|---|
| ASTS | During the quarter AST continued its transition from an R&D-oriented startup to a scaleup — a company that has validated its core technology and is now laser-focused on execution: expanding revenue, headcount, and market reach, all in compounding fashion. The milestone horizon has shifted accordingly, away from technological feasibility and toward launch cadence, manufacturing throughput, and expanded commercial agreements — each of which saw meaningful progress through the end of 2025 and into early 2026. |
| CASY | We trimmed Casey's on strength, and the stock's roughly flat performance compared favorably with benchmark's sector returns, which declined nearly -11%. |
| CEF | We added CEF to conservative portfolios back in 2022 around $16 as a straightforward alternative to bonds. Unlike most precious metals ETFs that use derivatives or futures contracts, Sprott actually owns physical gold and silver bars sitting in a vault. No counterparty risk, no financial engineering, just METAL. CEF's 90% surge in 2025 made this look prescient. It wasn't, we bought it as insurance. |
| CPRT | we recently trimmed some of our mega-cap tech holdings and other outperformers and used the proceeds to buy more of our underperforming holdings such as Copart, Inc. |
| DE | Deere treaded water as the market wanted AI momentum and not our names. |
| GRMN | Weakest performers included Garmin (-17%) |
| HEI | We've held HEI since early 2021. It's one of those quietly excellent family businesses. The Mendelsons have run it for decades, they own a meaningful stake, and they've built durable niches in aerospace parts and defense electronics. HEI was up 36% in 2025, hitting new highs on strong results across both their Flight Support and Electronic Technologies divisions. They keep doing what they do: disciplined acquisitions, high returns on capital, strong cash generation. |
| MSTR | Our original cost basis is around $17/share. Strategy operates as the leader in pioneering corporate bitcoin strategy. The company holds the largest corporate bitcoin stash (by far). It monetizes this through fixed-income securities like convertible notes and structured debt. The case for MSTR is leveraged bitcoin upside under proven capital allocators, with a steady software business on the side. 2025 was a tough year for MSTR. The stock declined 47.53% thanks to BTC volatility and market rotation away from high-conviction names. Putting the 'treasury company' hype aside, which now includes many MSTR copycats, I still think the core thesis holds. |
| RACE | Our largest common stock holding is Ferrari. Over the last three years we have purchased 543,800 shares. At year-end, our investment in Ferrari was valued at $202.3 million. When we started purchasing shares in 2022, we were thinking about what the company would look like in two decades. Ferrari's vehicles will, of course, continue to change over the coming years, but we think the reasons people will choose the brand in the 2040s will be nearly the same as they are today. We believe Ferrari is one such company that has sustained its competitive edge. |
| RMS | Hermès had issues. |
| SEB | Seaboard's 83% return helped, but not enough. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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