| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 23.0% |
| 2025 |
|---|
| 23.0% |
GROW Funds delivered strong 2025 performance with returns of +7% to +23% net across managed portfolios, outperforming relevant benchmarks. The fund has strategically rotated from technology and industrials to an overweight position in healthcare, viewing it as both offensive through new products addressing large markets and defensive through nondiscretionary characteristics. Key holdings include Mama's Creations, which expanded nationally and targets $1 billion revenue by 2030, and Axsome Therapeutics, positioned for FDA approval of Alzheimer's treatment. The manager expresses skepticism about AI infrastructure investments by tech giants, comparing current partnerships to the dot-com era bubble. With Federal Reserve rate cuts expected through 2026, small companies are positioned to benefit historically. Despite elevated market valuations reminiscent of 2000 and 2021, the manager sees tremendous investment opportunities through active stock selection, focusing on companies with high revenue growth and strong margins rather than passive index investing.
Focus on small-cap growth companies with new products addressing large market opportunities, emphasizing healthcare as both offensive and defensive positioning while maintaining conviction in active stock selection over passive investing.
The manager remains optimistic that portfolio companies can continue delivering positive fundamentals regardless of economic backdrop. They believe market noise will ultimately be eclipsed by revenue and earnings growth from their companies. The current environment is viewed as providing opportunities for stock selection and active management versus passive index investing.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 15 2026 | 2025 Q4 | AMZN, AXSM, CSCO, FENC, GENI, GOOGL, INDV, MAMA, MDXH, META, MSFT, NPCE, NTNX, NVDA, ORCL, SEMR, XERS | AI, Biotechnology, growth, healthcare, Pharmaceuticals, Rate Cuts, small caps, valuation |
MAMA AXSM MDXH |
The fund has rotated to an overweight position in healthcare, viewing it as both offensive and defensive. Healthcare companies offer new products addressing large market… |
| 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 |
HealthcareHealthcare was the strongest relative contributor in the quarter with holdings increasing nearly +16% compared to benchmark returns of roughly +12%. Exact Sciences was acquired for a significant premium by Abbott Laboratories resulting in an +86% return, while other strong performers included Tarsus Pharmaceuticals, Glaukos following approval of a new product, Penumbra, and Repligen driven by strong earnings results. |
M&A Product Approval Earnings Biotech | |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 15, 2026 | Fund Letters | Mike Collins | MAMA | Mama’s Creations, Inc. | Consumer Staples | Packaged Foods | Bull | NASDAQ | Branding, Distribution, Food, growth, Margins | Login |
| Jan 15, 2026 | Fund Letters | Mike Collins | AXSM | Axsome Therapeutics, Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, CNS, Druglaunch, FDA, Optionality | Login |
| Jan 15, 2026 | Fund Letters | Mike Collins | MDXH | MDxHealth S.A. | Health Care | Diagnostics & Research | Bull | NASDAQ | diagnostics, Genomics, growth, Oncology, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| 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. |
| AXSM | Axsome is a biopharmaceutical company focused on central nervous system conditions such as Alzheimer's Disease Agitation, Major Depressive Disorder, Migraines, and Fibromyalgia. These products have the potential to provide over $16 billion in peak sales in comparison to Asxome's $630 million of revenue in 2025. Auvelity is an oral drug used for the treatment of major depressive disorder (MDD). It was approved by the FDA in August of 2022 and has quickly ramped to over $500 million in sales in 2025. We believed that Auvelity could reach $2 billion in peak sales for Alzheimer's Disease Agitation alone. |
| CSCO | It took Cisco, the leading provider of internet equipment and briefly the world's most valuable company, a quarter of a century and another technology bubble to regain its peak. |
| 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. |
| MAMA | stocks scaling very nicely and entering the small-cap sweet spot (REAL, MAMA, CBLL, KRMD). |
| MDXH | MDxHealth is a prostate cancer diagnostics screening company we initially purchased at around $2 per share a year ago. The company has a network of over 7 thousand physicians and has completed over 250 thousand tests in total. MDXH had grown revenue each of the last 12 quarters at over 20% through Q2 2025. The stock drop in November was due to confusion around their 2026 growth expectations which we believe was overdone. Despite the positive momentum the stock only trades at 2x EV/Revenues vs. peers at 5-9x for similar growth and margin profiles. |
| 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. |
| NTNX | Nutanix is a provider of a unified cloud platform that simplifies IT by combining compute, storage, networking, and virtualization into a single software-defined solution. In effect, the company allows businesses to run applications across private data centers, public clouds, and edge locations seamlessly. The stock sold off on the back of earnings as the company cut its 2026 revenue and earnings forecast as it navigates complex customer migrations, a choppy macro backdrop and supply chain and OEM partner related uncertainty. |
| 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. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| SEMR | Some of our top performing closed positions: SEMR 68%. Four months ago we invested in Semrush as an example of a company we believed would be an AI winner despite the market aggressively selling the stock on AI fears. Shortly thereafter, the company was acquired by Adobe at a 78% premium to bolster its AI capabilities, validating that view. |
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