| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.7% | 2.3% | 13.3% |
The Fortress Caribbean Growth Fund delivered strong performance in Q4 2025, gaining 2.3% and finishing the year up 13.3% at new all-time highs. The fund's value-oriented approach and global diversification strategy proved effective, with international and emerging markets equities driving returns while Caribbean shares remained weak. The manager switched from Johnson & Johnson to Merck during the quarter but made no other major portfolio changes. Looking ahead, the fund sees attractive opportunities in undervalued U.S. healthcare and consumer staples sectors that have been overshadowed by AI enthusiasm. Key risks include geopolitical tensions, uneven economic recovery, elevated valuations in some areas, and upcoming U.S. midterm elections. However, supportive catalysts include fiscal stimulus, accelerating AI investment, and a resilient global economy. The manager maintains conviction in the value approach, particularly for globally diversified portfolios, and expects continued positive returns despite acknowledging that the future may bring volatility. High-quality bonds also offer meaningful return potential if monetary policy continues easing.
The Fortress funds maintain a value-oriented approach focused on globally diversified portfolios, with particular emphasis on international and emerging markets where the best value opportunities exist, while selectively investing in undervalued U.S. healthcare and consumer staples that have been left behind by the AI frenzy.
Looking ahead, fiscal stimulus, accelerating investment in AI, and a relatively resilient global economy provide a supportive backdrop for equities. Against this backdrop, we continue to see attractive opportunities for value conscious investors, particularly those with globally diversified portfolios. The future may not be perfect, but there is still every reason to expect it to be positive for our investment portfolios.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Dec 31 2025 | 2025 Q4 | BRK-B, JNJ, MRK | AI, Bonds, Caribbean, emerging markets, global, healthcare, value | - | The Fund uses a value approach to invest primarily in Caribbean and international equities. The manager continues to see attractive opportunities for value conscious investors,… |
| Sep 30 2025 | 2025 Q3 | - | - | - | - |
| Jun 30 2025 | 2025 Q2 | - | - | - | - |
| Mar 31 2025 | 2025 Q1 | - | - | - | - |
| Dec 31 2024 | 2024 Q4 | - | - | - | - |
| Sep 30 2024 | 2024 Q3 | - | - | - | - |
| Jun 30 2024 | 2024 Q2 | - | - | - | - |
| Mar 31 2024 | 2024 Q1 | - | - | - | - |
| Dec 31 2023 | 2023 Q4 | - | - | - | - |
| Sep 30 2023 | 2023 Q3 | - | - | - | - |
| Jun 30 2023 | 2023 Q2 | - | - | - | - |
| Mar 31 2023 | 2023 Q1 | - | - | - | - |
| Dec 31 2022 | 2022 Q4 | - | - | - | - |
| Sep 30 2022 | 2022 Q3 | - | - | - | - |
| Jun 30 2022 | 2022 Q2 | - | - | - | - |
| 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 |
Emerging marketsGlobal equities, especially those outside the U.S., powered equity returns. In emerging markets, shares of companies linked to commodities were the strongest performers as commodities rallied. Even after a strong year for international and emerging markets shares, we still see some of the best value in the world in these areas. |
International Commodities Non-US Best Value | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| BRK-B | Our annual pilgrimage to Omaha was running according to plan until, as we headed to the airport while listening to the final moments of the annual shareholder's meeting, Buffett dropped the bombshell: he would step down as CEO at year-end. We believe the most important aspect of Berkshire—its culture—is likely to endure. Abel inherits Berkshire's massive $382 billion cash position and will likely allocate more capital than Warren and Charlie did over much of their investing careers. |
| JNJ | During the quarter, we switched out of a long-held position in Johnson & Johnson into a new holding in Merck. |
| MRK | Top gainers in the Fund this quarter included Merck (+26%) |
| 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 | |||
