Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 16.8% | 5.0% | 4.6% |
| 2025 | 2024 |
|---|---|
| 4.6% | -8.8% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 16.8% | 5.0% | 4.6% |
| 2025 | 2024 |
|---|---|
| 4.6% | -8.8% |
The Invenomic Fund returned 4.58% in 2025 versus 17.02% for the S&P 1500, operating with average net exposure of 20.5% through 111.3% long and -90.8% short positions. The fund faced significant headwinds as growth outperformed value for the third consecutive year, momentum continued its historic run, and large-caps outperformed small/mid-caps by over 1000 basis points. Despite these challenges, the fund added 5.58% in stock selection alpha and delivered positive returns. The strategy maintains a small-cap bias and value orientation, which has created persistent headwinds but positions the fund for expected factor reversions. Looking forward, the manager sees tremendous opportunity amid stretched market conditions, with margin debt at record highs of $1.23 trillion and historically elevated valuations creating systemic risks. The fund believes it is well-positioned with wide valuation divergence between long and short positions to capitalize on anticipated volatility and factor rotations in 2026.
The Invenomic Fund employs a disciplined long/short equity strategy focused on value investing with a small-cap bias, positioned to capitalize on expected mean reversion in value versus growth and momentum factors despite current headwinds.
The manager sees tremendous opportunity for the portfolio going forward, expecting 2026 to be another volatile market environment. They believe markets are rarely as stretched as they are today and expect negative effects on the market overall from elevated risks.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 29 2026 | 2025 Q4 | - | Equity, Factor, Long/Short, momentum, small caps, value | - | Value is currently going through one of its worst performance periods in history, with the value-growth spread at -9.0% for 2025. The fund maintains a value-oriented approach despite persistent headwinds over the last three years. Momentum factor is in the midst of one of its strongest three-year runs in history, creating headwinds for the fund. The manager believes momentum is historically mean-reverting and expects a sizable rotation. The fund has a small-cap bias given willingness to buy smaller companies rather than short them. Large-caps have meaningfully outperformed small-caps by over 1000 basis points, creating persistent headwinds since inception. |
| Oct 28 2025 | 2025 Q3 | - | Artificial Intelligence, CAPE Ratio, Market Bubble, momentum, valuation |
NVDA TSLA NVDA TSLA |
The fund underperformed due to momentum-driven markets and stretched valuations, with the Shiller CAPE exceeding 40xnear dot-com bubble levels. Management cautioned that AI exuberance has inflated capital expenditures and weakened returns, drawing parallels to the late 1990s. They remain cautious, prioritizing discipline and short exposure amid what they view as excessive market optimism. |
| Jun 30 2025 | 2025 Q2 | - | factor crowding, Leverage, Mean reversion, momentum, retail flows | - | The letter highlights extreme momentum dominance and historic factor crowding as major headwinds to value-oriented long-short strategies. Management argues these imbalances are unsustainable and likely to reverse as leverage and retail participation peak. The portfolio remains positioned for normalization rather than chasing momentum. |
| 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 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Momentum2025 was characterized by extreme momentum dynamics with capital flowing into immediate winners while perceived losers saw unprecedented pressure. Market leadership concentrated in lower-quality, speculative, and cyclically sensitive stocks. The momentum trade has been exceptionally profitable short-term but timing the inevitable reversal remains challenging. |
Cyclical Speculation Leadership Volatility Reversal |
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 | |
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 | |
| 2025 Q3 |
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 |
| 2025 Q2 |
Momentum2025 was characterized by extreme momentum dynamics with capital flowing into immediate winners while perceived losers saw unprecedented pressure. Market leadership concentrated in lower-quality, speculative, and cyclically sensitive stocks. The momentum trade has been exceptionally profitable short-term but timing the inevitable reversal remains challenging. |
Cyclical Speculation Leadership Volatility Reversal |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 28, 2025 | Fund Letters | Ali Motamed | NVDA | NVIDIA Corp. | Information Technology | Semiconductors | Bear | NASDAQ | — | Login |
| Oct 28, 2025 | Fund Letters | Ali Motamed | NVDA | NVIDIA Corp. | Information Technology | Semiconductors | Bear | NASDAQ | — | Login |
| Oct 28, 2025 | Fund Letters | Ali Motamed | TSLA | Tesla Inc. | Consumer Discretionary | Automobiles | Bear | NASDAQ | — | Login |
| Oct 28, 2025 | Fund Letters | Ali Motamed | TSLA | Tesla Inc. | Consumer Discretionary | Automobiles | Bear | NASDAQ | — | Login |
| TICKER | COMMENTARY |
|---|---|
| No ticker commentary found. | |
| 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 | |||