| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 0% |
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 |
Flattery Wealth underperformed in 2025 with 1.54% returns versus 18% for the S&P 500, primarily due to bitcoin exposure declining 47.53%. However, multi-baggers like AST SpaceMobile up 245% and gold up 90% demonstrate the contrarian approach. The manager maintains conviction in bitcoin institutional adoption, AI transformation, and quality compounders for long-term outperformance despite near-term index divergence risks. |
| Jan 23 2025 | 2024 Q4 | VBTLX, VOO, VTIAX | diversification, Dollar, international, tariffs, Trade Policy | - | Sparrow Wealth Management advocates diversification as the best defense against market volatility. Q2 2025 saw dramatic swings from Trump tariff announcements, with international stocks outperforming due to dollar weakness. The firm expects continued uncertainty around trade negotiations, tax legislation, rate cuts, and AI evolution, reinforcing their diversification strategy. |
| Jan 15 2024 | 2023 Q4 | - | diversification, international, REITs, tariffs, value | - | Sparrow Wealth demonstrates diversification's power as international value stocks gained over 10% while the S&P 500 fell 4.27% during Q1's tariff tantrum. The firm warns of tariff-driven economic slowdown and inflation risks but advocates staying the course rather than making reactive portfolio changes, emphasizing how global diversification provided meaningful downside protection. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIMassive capex cycle linked to AI representing increasing cash flow from hyperscalers. Signs that AI adoption is flatlining with unclear use cases for profitability. Reliance on Magnificent 7 for equity market performance continues with credit markets becoming increasingly sensitive to AI companies. |
Artificial Intelligence Hyperscalers Capex Technology Valuations |
GoldExceptionally strong performance with gold returning 65% for 2025 and silver 148%. Trend continued into 2026 with gold rising 13.3% and silver 18.9% by end of January. Extreme moves following very strong performance last year. |
Precious Metals Safe Haven Inflation Hedge Commodities | |
CreditCredit spreads remained tight at historic levels with returns mainly generated by carry. Four of the largest credit issuers in 2025 were hyperscalers. Strong performance from convertible bond strategies and continued narrowing of spreads with managers tilting net long. |
Credit Spreads High Yield Investment Grade Convertible Bonds | |
GeopoliticalPresident Maduro taken from Venezuela, fracturing of Western alliance as Trump looked to acquire Greenland, protests in Iran violently suppressed. Tensions between countries may make cross-border transactions more difficult as countries favor national champions. |
Geopolitics Venezuela Iran Trade Policy National Security | |
| 2024 Q4 |
Trade PolicyPresident Trump announced tariffs that were broader and steeper than anticipated, targeting nearly every major U.S. trading partner, causing the S&P 500 to fall nearly 10% in one week. A 90-day pause on those tariffs was announced a week later, prompting a swift market rebound. |
Tariffs Trade Policy Trump International |
| 2023 Q4 |
Trade PolicyThe potential for widespread tariffs represents real risk to slowing down the US economy and increased risk for inflation to reignite as importers pass along increased costs to consumers. The global stock market faced a tariff tantrum in March that gave back most gains earned through mid-February. |
Tariffs Inflation Trade |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| 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. |
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