| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 9.7% |
The Steppe Eagle delivered +5.51% in the first half of 2025, underperforming its MSCI World benchmark's +8.12%, but recovered to +9.74% YTD by July. The fund's core thesis centers on long-term investing in environmentally friendly and shariah-compliant businesses with sustainable competitive advantages. Key contributors included solar equipment company Nextracker (+59%), precious metals (+30%), and solar companies SMA Solar and SolarEdge (+50% combined). Detractors included Salesforce (-18%), Fluence Energy (-61%), and Puma SE (-48%). The manager sees opportunities emerging from market volatility, particularly in clean energy as the sector transitions from cyclical lows. With solar and wind energy rapidly increasing their share of global energy consumption, the fund is positioned for the anticipated clean energy cycle recovery in 2025-2027. The portfolio maintains exposure to cloud computing, AI, and e-commerce leaders while gradually reducing precious metals exposure. Risk factors include elevated Growth-to-Value ratios and continued Big Tech volatility, though the fund's patient capital approach targets 3-10+ year investment horizons.
The Steppe Eagle focuses on long-term investing in environmentally friendly and shariah-compliant businesses across developed economies, targeting mature companies with sustainable competitive advantages in clean energy, technology, and conscious consumer sectors.
The manager expects continued market volatility with 180+ days remaining in the year. Clean energy cycle recovery is anticipated to benefit solar and wind holdings in 2025-2027. Mean reversion from growth to value stocks is expected to create opportunities, though it may bring challenges for high-priced sectors. The fund maintains its long-term investment approach focused on sustainable, profitable businesses.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 28 2025 | 2025 Q2 | ADBE, BIRD, BWA, CRM, FLNC, GOOGL, HFG.DE, LIGHT.AS, LYFT, MGA, NVDA, NXT, PUM.DE, S92.DE, SEDG, SHOP.TO, THO, VWSB.CO, ZAL.DE, ZM | AI, clean energy, Cloud, E-Commerce, Solar, technology, value, Wind |
CRM ZM ZAL GR NXT VWSB GR PUM GR ADBE |
The Steppe Eagle targets long-term returns through sustainable, shariah-compliant businesses in clean energy, technology, and conscious consumer sectors. After underperforming in H1 2025, the fund recovered to +9.74% YTD driven by solar equipment and precious metals gains. Positioned for clean energy cycle recovery in 2025-2027 with patient capital approach spanning 3-10+ year horizons. |
| Feb 19 2025 | 2024 Q4 | AAPL, ADBE, AMZN, BIRD, CRM, CSIQ, GOOGL, HFG.DE, LIGHT.AS, META, MSFT, NVDA, NXT, PUM.DE, SEDG, SHOP, TPIC, TSLA, ZAL.DE, ZM | clean energy, Europe, long-term, technology, undervalued, value | - | Steppe Eagle lost 8.46% in 2024 due to extreme clean energy weakness, particularly SolarEdge's 89% decline. Manager maintains conviction in value approach and clean energy transition thesis, viewing current sector weakness as cyclical. Avoided tech concentration except reasonably-priced Alphabet. High cash position (35%) and focus on undervalued sustainable businesses positions fund for recovery when market extremes correct. |
| Jul 19 2024 | 2024 Q2 | ADBE, AMZN, ASC.L, CRM, CSIQ, ENPH, GOOGL, HFG.DE, NVDA, PUM.DE, SEDG, SIGNF, TPIC, ZAL.DE, ZM | clean energy, Cloud, Cyclical, Europe, growth, long-term, value |
SEDG HFG.DE TPIC |
Value-focused fund down 16.53% in H1 2024 due to AI mania and clean energy oversupply. Portfolio concentrated in quality cloud, e-commerce, and renewable companies trading at deep discounts. Manager sees current market concentration exceeding dot-com bubble levels and expects recovery in 2025 as cycles normalize and value investing pays off. |
| Dec 31 2023 | 2023 Q4 | ADBE, CRM, CSIQ, ENPH, GOOGL, HFG.DE, LIGHT.AS, LYFT, SEDG, SHOP.TO, TPIC, VWSB.DE, ZAL.DE, ZM | clean energy, Esg, Europe, long-term, technology, value |
ZAL.DE HFG.DE LIGHT.AS TPIC CRM AZM IM SEDG |
Steppe Eagle returned 6.81% in 2023, underperforming benchmarks by avoiding Magnificent 7 concentration. The fund focuses on patient value investing in clean energy and technology at reasonable valuations. Strong gains from Shopify, Adobe, and uranium offset solar sector weakness. Portfolio is fully deployed in undervalued sustainable businesses positioned for 3-5 year recovery cycles. |
| Dec 31 2022 | 2022 Q4 | BIRD, GOOG, HFG GR, TPIC, ZAL GR | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q2 |
SolarSolar equipment companies like Nextracker grew 59% since December, while SMA Solar and SolarEdge combined grew 50%. The fund sees solar as a primary energy source with rapidly increasing presence, moving from below 0.5% to 5-7% of total energy consumption and above 10% of electricity generation worldwide. |
Solar Trackers Solar Inverters Renewable Energy Clean Energy Energy Transition |
WindVestas Wind Systems represents the largest and oldest wind energy company serving all major global markets except China. The company has 27GW of projects in pipeline and 37 billion EUR of service contracts, with improved financial health and record sales in 2024. |
Wind Energy Renewable Energy Clean Energy Wind Components Energy Transition | |
CloudCloud-based platforms like Salesforce pioneered CRM systems with double-digit growth and rapidly improving profitability. Alphabet vigorously grows in Cloud Computing with double-digit growth, representing a key growth driver for tech titans. |
Cloud Computing CRM SaaS Enterprise Software Digital Transformation | |
E-commerceEuropean e-commerce leader Zalando maintains a stiff grip over the EU market with 10.3 billion EUR in sales. The company shows potential for stable double-digit growth despite thin profit margins and fast-fashion sustainability concerns. |
Online Retail Digital Commerce European Markets Retail Technology Consumer Digital | |
AINvidia's financial performance in AI could be unmatched in stock market history, though the manager warns of vulnerability in pricing despite 50-70% annual sales growth. Alphabet is positioned as the top company for Autonomous Driving and an undisputed leader in AI development. |
Artificial Intelligence Machine Learning Autonomous Driving GPU Computing Tech Innovation | |
| 2024 Q4 |
Energy TransitionThe fund maintains deep exposure (up to 30% of portfolio) to wind, solar, and battery companies despite extreme sector decline in 2024. Manager views this as cyclical weakness similar to post-Fukushima crisis 2011-2013, with mathematical evidence showing global power generation shifting toward renewables at 3-5x the rate of fossil fuel installations. |
Solar Wind Battery Clean Energy Renewable |
ValueManager emphasizes seeking undervalued strong businesses trading at significant discounts to intrinsic value. Started building positions in old-school value companies like BorgWarner, Magna International, and Thor Industries. Expects value stocks to outperform growth stocks as current growth dominance becomes unsustainable. |
Undervalued Intrinsic Value Value Stocks Discount | |
CloudSignificant positions in cloud-based technology companies including Salesforce (CRM platform pioneer), Zoom (workplace collaboration), and Shopify (e-commerce platform). These companies demonstrated strong returns and sustainable business models with low debt levels and high free cash flow margins. |
SaaS CRM Collaboration E-commerce Software | |
E-commerceHoldings in European e-commerce leaders Zalando SE (10.3 billion EUR clothing retailer) and HelloFresh SE (7.7 billion EUR meal kit delivery). Both companies showed recovery potential trading at depressed valuations despite maintaining market leadership positions in their respective segments. |
Online Retail Marketplaces Digital Commerce | |
| 2024 Q2 |
Energy TransitionThe fund is heavily invested in clean energy companies, particularly solar energy firms like SolarEdge and Canadian Solar. The manager expects a recovery in the clean energy sector by 2025 after the current oversupply cycle. Solar energy installations continue to grow globally, with 2022 seeing 1185 Gigawatts installed. |
Solar Clean Energy Renewable Components Energy Storage Wind |
ValueThe fund follows a value investing approach, seeking companies trading at significant discounts to intrinsic value. The manager emphasizes buying quality businesses when Mr. Market offers them at attractive prices, following Warren Buffett's philosophy of being greedy when others are fearful. |
Value Quality Intrinsic Value Discount Long-term | |
E-commerceThe portfolio includes significant exposure to e-commerce and digital marketplace companies including HelloFresh, Zalando, and ASOS. The manager views these as leaders in their respective markets with strong growth potential despite current headwinds. |
E-commerce Marketplaces Digital Commerce Subscription Online Retail | |
CloudThe fund holds major cloud and software companies including Salesforce, Adobe, and Zoom. These represent the largest positions in the portfolio, reflecting the manager's conviction in the long-term growth of cloud-based business solutions. |
Cloud SaaS Enterprise Software CRM Collaboration | |
| 2023 Q4 |
SolarThe fund invested in solar energy leaders SolarEdge, Canadian Solar, and Enphase after the sector crashed in late 2023 due to declining demand. These companies maintain leadership positions and financial health despite industry cyclical challenges. |
SolarEdge Enphase Canadian Solar Power optimizers Solar inverters |
WindTPI Composites builds composite wind blades for major wind energy producers including Vestas, General Electric, and Nordex. Despite stock volatility, the company maintains strong business relationships with wind energy titans. |
TPI Composites Wind blades Vestas General Electric Nordex | |
E-commerceZalando SE is a 10 billion EUR European e-commerce clothing retailer with strong market position in the EU. The company is considered undervalued despite thin profit margins and fast-fashion sustainability concerns. |
Zalando European retail Clothing Online retail EU market | |
CloudSalesforce pioneered cloud-based CRM systems and maintains leadership under CEO Benioff. The company grows at double-digit pace with healthy balance sheet and deserves significant portfolio allocation for long-term holding. |
Salesforce CRM Cloud computing Customer management Enterprise software | |
UraniumPhysical uranium investment provided unexpected strong returns of 85.79% in 2023. The position benefited the portfolio significantly despite its relatively small size in the overall allocation. |
Physical uranium Commodity Nuclear fuel Energy transition Uranium trust |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 28, 2025 | Fund Letters | Mr. Damir Babanazarov | CRM | Salesforce, Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | cloud, core holding, CRM, margin expansion, profitability | Login |
| Jul 28, 2025 | Fund Letters | Mr. Damir Babanazarov | ZM | Zoom Video Communications, Inc. | Information Technology | Application Software | Bull | NASDAQ | Freecashflow, Green, profitability, SaaS, Unifiedcommunications, valuation | Login |
| Jul 28, 2025 | Fund Letters | Mr. Damir Babanazarov | ZAL GR | Zalando SE | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | Xetra | ecommerce, Europe, Evsales, fashion, Margins, recovery | Login |
| Jul 28, 2025 | Fund Letters | Mr. Damir Babanazarov | NXT | Nextracker Inc. | Industrials | Electrical Components & Equipment | Bull | NASDAQ | growth, renewable energy, Solar, spin-off, Tracking Systems | Login |
| Jul 28, 2025 | Fund Letters | Mr. Damir Babanazarov | VWSB GR | Vestas Wind Systems A/S | Industrials | Heavy Electrical Equipment | Bull | Xetra | cashflow, Margins, pipeline, renewables, services, Wind | Login |
| Jul 28, 2025 | Fund Letters | Mr. Damir Babanazarov | PUM GR | Puma SE | Consumer Discretionary | Apparel, Accessories & Luxury Goods | Bull | Xetra | Apparel, Brand, Footwear, management, Sustainability, turnaround | Login |
| Jul 28, 2025 | Fund Letters | Mr. Damir Babanazarov | ADBE | Adobe Inc. | Information Technology | Application Software | Bull | NASDAQ | Creativity, Margins, Moat, Software, stability | Login |
| Jun 28, 2024 | Fund Letters | Harry Qelm Baabsman | SEDG | SolarEdge Technologies | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | clean energy, Cyclical, EV/Sales, growth, Inverters, Power Optimizers, Solar Energy, Value | Login |
| Jun 28, 2024 | Fund Letters | Harry Qelm Baabsman | TPIC | TPI Composites | Industrials | Electrical Equipment | Bull | NASDAQ | clean energy, Composite Manufacturing, Cyclical, Industrial, turnaround, Value, Wind Energy | Login |
| Jun 28, 2024 | Fund Letters | Harry Qelm Baabsman | HFG.DE | HelloFresh SE | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | XETRA | Consumer Discretionary, e-commerce, Europe, EV/Sales, market leader, Meal Kit Delivery, Subscription, Value | Login |
| Dec 31, 2023 | Fund Letters | Harry Qelm Baabsman | TPIC | TPI Composites Inc | Industrials | Heavy Electrical Equipment | Bull | NASDAQ | clean energy, Composite Materials, Cyclical, high-risk high-reward, turnaround, Wind Energy | Login |
| Dec 31, 2023 | Fund Letters | Harry Qelm Baabsman | ZAL.DE | Zalando SE | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | XETRA | double-digit growth, e-commerce, European markets, Fashion retail, market leader, Value | Login |
| Dec 31, 2023 | Fund Letters | Harry Qelm Baabsman | HFG.DE | HelloFresh SE | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | XETRA | double-digit growth, founder-led, Geographic Diversification, Meal Kit Delivery, Sustainable Food, Value | Login |
| Dec 31, 2023 | Fund Letters | Harry Qelm Baabsman | LIGHT.AS | Signify NV | Industrials | Electrical Equipment | Bull | Euronext Amsterdam | dividend income, energy efficiency, LED Lighting, market leader, Sustainable Technology, Value | Login |
| Dec 31, 2023 | Fund Letters | Harry Qelm Baabsman | SEDG | SolarEdge Technologies Inc | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | clean technology, Cyclical, energy storage, Fast Growth, Power Optimization, Solar Energy | Login |
| Dec 31, 2023 | Fund Letters | Harry Qelm Baabsman | CRM | Salesforce Inc | Information Technology | Application Software | Bull | NYSE | Cloud software, CRM, double-digit growth, Enterprise software, Long-term Hold, Technology leader | Login |
| Dec 31, 2023 | Fund Letters | Harry Qelm Baabsman | AZM IM | Zoom Video Communications Inc | Information Technology | Application Software | Bull | NASDAQ | Contrarian Value, Environmental Benefits, low debt, Post-Pandemic Recovery, Sustainable Technology, Video Communications | Login |
| TICKER | COMMENTARY |
|---|---|
| GOOGL | Alphabet's (GOOGL) shares, which lost -25% last April from the peak of just over $195. It just returned to $185 price level; This business with a +13-15% growth rate of revenue is still priced reasonably at 6 Price-to-sales (PS) and 21.5 Price-to-Earnings (PE) with a sustainable growth rate. So, it is less volatile, more boring. Alphabet Inc (GOOGL): The one from the Tech Titans that the Steppe Eagle has under his wing. This behemoth commands a Sales figure of over $370 billion and a market capitalization of over $2 trillion. In recent years, the company has kept its grasp over the Internet Search, YouTube, and AI. It also vigorously grows in the area of Cloud Computing (double-digit growth), and this is the top company for Autonomous Driving, an undisputed leader with the most driven distance. It still doesn't look expensive and is worth every invested dollar. We entered the position in 2022 and 2023 at an average price of $106. |
| CRM | Salesforce (CRM) that fell by -18% from its Dec31 peak of $334, and due to the third heaviest weight in the portfolio it carved out so much out of overall result. Salesforce (CRM): The company pioneered the cloud-based CRM systems (Customer relationship management). Its bright leadership by Marc Benioff and famous corporate culture enabled it to cultivate a team of talented professionals who develop several important platforms that help businesses globally to work with clients, make analytics and decisions, and develop new connections. That is a big company with sales of over $38 billion; Salesforce's business is growing at a double-digit pace, which has shown a few features of maturing, slowing its fast-growth phase, but with rapidly improving profitability (operating margin jumped from 2% to 19% in just four years) and a healthy balance sheet. Our average purchase price is $186 in 2023. |
| ZM | Zoom Video Communications (ZM): We consider Zoom as a business with a great product and a talented team that learns from mistakes and develops more and better future products. It came from a Zoom call to Zoom workplace; it is so much more now than just a video-conference software company. Today it is a sustainable, profitable business with a bright idea, which was an exceptional pearl even before COVID-19. The debt level is low, the revenue stream continues to come above $4.5 billion a year, the business has a 30+% free cash flow margin, has little debt, and its product canceled millions of unnecessary business travel, which is very green. Zoom has some difficulties growing again at a double-digit pace, but when it fell to below $60, it was an opportunity to step heavily in. Now, the company is trading more reasonably between $75 and 90. It is a nice long-term business to hold. |
| NXT | the top contributor was solar equipment company Nextracker (NXT), which grew +59% since December 31. Nextracker (NXT): The business manufactures solar tracking systems primarily in the USA; these systems allow solar panels to follow the sun disk through its daily orbit, which increases the solar energy output by 25-40%. It is a Flex Ltd spin-off, with $2.7 billion in annual sales, which demonstrated growth when all other solar companies faltered in 2024 year; it expected to grow at a 20-30% pace for the next several years; the profit margin is dancing between 10% and 20%; and the debt is just $145 million at total assets of $2983 million. The shares of this company have been trading just for a few years, which is the only reason we hesitated to have more than 5% of this company in the portfolio. We prefer 10+ years of history. Our average entry point in 2024-2025 is $40. |
| LYFT | Lyft (LYFT) shot from $13 to $17.2, where we sold some, because it is volatile; however, we still think it is undervalued, especially compared to at least the third of UBER's Price-to-Sales |
| NVDA | The beloved Nvidia (NVDA) took the spotlight a few times in our reports. The financial performance of this business could be unmatched in the recorded history of the stock market. The unbelievable leap the company's earnings made in 2022-2024 can be shadowed only by the shocking price boost. However, from a historical perspective, these two metrics should align. In order to justify such a change, the company should more than double its earnings in 2025 without any price change, or the price should decrease by at least 50%. Here is what happened in the spring of 2025: the NVDA stock fell to $95 per share versus $145 price in late 2024; that's approximately -50%. Of course, NVDA returned strongly to over $160 in July 2025, +70%. However, that just emphasizes how vulnerable the pricing is, while everyone see that the company still grows its sales by +50-70% annually. But what if it slows down to a more sustainable growth rate? |
| SEDG | solar companies SMA Solar (S92_GR) and SolarEdge (SEDG) took the third place growing by 50% combined. SolarEdge (SEDG): The company is a fast-grower but prone to cycles. It produces power optimizers and string inventors for the solar energy sector. We followed the company because it managed to increase its sales every year at 25 to 35% rates, increasing its operating profits using a considerably small amount of debt. The company works in both great solar energy markets (the United States and the European Union). This company, SolarEdge and Enphase (ENPH), are leaders in a very profitable business in the portfolio. 2024 ruined and made evident issues with the company, such as unnecessary product diversification and weak control over profit margin, so the cycle forced the business to change its CEO and CFO. We remain hopeful the errors will be amended so that when the clean energy cycle unbends, the company will continue to grow in 2025-2027. The business showed signs of recovery, and the stock price changed from $13 to $27-28 in 2025. However, our average position is still $117.5. |
| BIRD | worth mentioning Allbirds (BIRD) that added +49% since Dec31 |
| FLNC | Fluence Energy (FLNC) a backed by Siemens and AES battery company fell -61%, despite its modest 2.8%-weight it dragged us down mighty |
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