Invesco Discovery Fund

Investor Summary

The fund is co-managed by Ronald Zibelli, CFA, who serves as Chief Investment Officer of Growth Equities at Invesco and has been senior portfolio manager since May 30, 2006, and Asutosh Shah, CFA, CPA, who joined as co-manager in February 2014 and has been overseeing the fund since 2020. Zibelli brings extensive experience from Merrill Lynch Investment Managers and Chase Manhattan Bank, providing continuity and deep institutional knowledge. Shah is a Senior Portfolio Manager responsible for Discovery Small Cap Growth, Capital Appreciation, and Technology strategies, with significant experience at OppenheimerFunds, Merrill Lynch Investment Managers, and BlackRock Financial Management. Both managers hold advanced credentials and have demonstrated long-term commitment to the growth equity investment discipline.

Fund Strategy

The Invesco Discovery Fund seeks capital appreciation by investing primarily in smaller-cap growth companies that are industry leaders and pioneers with high-quality management teams. The strategy employs a disciplined investment process focused on premier growth companies with rigorous risk management and sell discipline. The fund targets companies that exhibit strong earnings growth, innovative business models, and the ability to maintain market leadership positions over time. The investment approach emphasizes fundamental analysis combined with systematic risk management to identify sustainable competitive advantages and exceptional growth potential. The portfolio managers seek to outperform the benchmark through active management and tactical adjustments based on changing market conditions and individual company fundamentals.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
11.78%	30.5%	38.84%

Executive Summary

Invesco Discovery Fund delivered strong outperformance in Q2 2026, returning 30.63% versus 25.71% for the Russell 2000 Growth Index, driven primarily by stock selection in information technology and industrials. The fund maintains concentrated exposure to semiconductor companies and AI infrastructure beneficiaries, with top holdings including BrightSpring Health Services, MKS Inc, and TTM Technologies. Key contributors included TTM Technologies, Sterling Infrastructure, and MACOM, all benefiting from cyclical recovery and structural AI-driven demand in high-performance computing and data center development. Management added three new industrial positions (LittelFuse, Legence, AZZ) to capture opportunities in industrial renewal and AI infrastructure growth, while selling positions that grew beyond the small-cap mandate. The team maintains a constructive outlook supported by resilient economic growth, strong corporate profits, reduced regulatory burdens, and easing geopolitical tensions. They are encouraged by broadening market participation to small-caps and expect continued opportunities from AI innovation, industrial renewal, record buybacks, expanding M&A activity, and an anticipated wave of IPOs in 2026. The portfolio remains overweight industrials and IT with 99 holdings focused on premier growth compounders.

Forward Outlook

Management maintains a constructive outlook for US equities supported by a resilient economy, strong corporate profits, reduced regulatory burdens and easing Middle East conflict. They expect continued GDP and corporate profit growth in 2026, with record buybacks and expanding M&A activity. A wave of exciting IPOs is anticipated. AI-related innovation and infrastructure buildout remains robust, and industrial renewal continues to provide abundant investment opportunities. The team is encouraged by broadening market participation to previously lagging areas including small-caps. They remain focused on bringing the potential of premier growth companies to fund shareholders.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 20 2026	2026 Q2	ALGM, BTSG, CHRD, ESE, FIVE, GH, LFUS, LGND, LSCC, MKSI, MTSI, NVMI, ONTO, PRIM, STRL, TSEM, TTMI	AI, Data centers, growth, industrials, semiconductors, small caps, technology	-	Invesco Discovery Fund outperformed significantly in Q2 2026 with a 30.63% return, driven by concentrated semiconductor and AI infrastructure holdings. Top contributors TTM Technologies, Sterling Infrastructure, and MACOM benefited from cyclical recovery and AI-driven demand. Management added three industrial positions targeting AI infrastructure and industrial renewal opportunities. The team maintains a constructive outlook on small-cap growth, supported by strong corporate fundamentals, broadening market participation, and robust AI innovation.
Apr 20 2026	2026 Q1	AEIS, AGX, IRTC, KNX, LITE, ONTO, RKLB, STEP, TSEM, VIAV, WGS	AI, growth, industrials, semiconductors, small cap, technology	-	Invesco Discovery Fund outperformed significantly in Q1 2026 despite market volatility from Middle East conflict. Strong stock selection in AI-benefiting semiconductor and optical connectivity names drove returns. Management maintains focus on premier growth compounders while prioritizing risk management until geopolitical resolution enables return to constructive positioning.
Jan 24 2026	2025 Q4	AVAV, BTSG, CRS, CVLT, CW, EHC, ESAB, FIVE, FN, FROG, GH, HLNE, LITE, LRN, MTSI, RKLB, RMBS, SITM, STEP, TSEM	AI, compounders, growth, industrials, innovation, semiconductors, small caps, technology	GH EHC	Invesco Discovery Fund outperformed in Q4 2025 with 4.94% returns driven by AI infrastructure and semiconductor exposure. The team maintains constructive outlook on premier growth compounders, emphasizing industrials and IT sectors. Key catalysts include 2026 GDP growth expectations, record buybacks, and Fed rate cuts supporting continued technology-driven disruption opportunities.
Oct 20 2025	2025 Q3	AEIS, BTSG, CLS, CRS, CW, CWST, DUOL, EHC, EVR, FN, LSCC, PAR, PRIM, QTWO, SHAK, SITM, STEP, STRL, TTMI, TXRH	AI, growth, industrials, infrastructure, semiconductors, small caps, technology	-	Invesco Discovery Fund returned 7.85% in Q3 2025, underperforming its benchmark due to stock selection challenges. The fund maintains focus on premier growth compounders benefiting from AI infrastructure build-out and industrial renewal opportunities. Recent positioning emphasized industrials and technology sectors, with new semiconductor capital equipment exposure added to capitalize on AI-driven investment trends.
Jul 18 2025	2025 Q2	AEIS, BTSG, CLS, CRS, CW, CWST, DUOL, EHC, EVR, FN, LSCC, PAR, PRIM, QTWO, SHAK, SITM, STEP, STRL, TSEM, TTMI, TXRH	AI, growth, industrials, infrastructure, semiconductors, small caps, technology	AEIS LSCC TTMI CLS QTWO TXRH	Invesco Discovery Fund underperformed in Q3 2025 due to stock selection challenges despite maintaining focus on premier growth compounders. The fund is positioned for AI infrastructure build-out and industrial renewal opportunities, with recent emphasis on semiconductors and utility infrastructure. Managers remain constructive on US equities given resilient economy, Fed rate cuts, and record corporate buyback activity.
Apr 30 2025	2025 Q1	AAON, ALAB, BBIO, CLS.TO, COOP, CRS, CWAN, CWST, CYBR, DUOL, EHC, ERJ, EVR, FRPT, FTI, GKOS, ITCI, KKR, LITE, OLLI, PRS, RKLB, WAY	aerospace, AI, Biotech, growth, healthcare, small cap, technology	WAY RKLB BBIO	Invesco Discovery Fund declined 12.16% in Q1 2025, underperforming its benchmark due to stock selection challenges and AI-related volatility. Policy uncertainty from the Trump administration created headwinds, prompting more conservative positioning. Despite near-term challenges, the team remains focused on premier growth compounders benefiting from technology-driven disruption across the global economy.
Mar 12 2025	2024 Q4	ALAB, AMZN, CLH, CLS, CRS, CYBR, DUOL, EHC, EVR, FIX, INTA, MOD, NVDA, ONTO, PEGA, PI, QTWO, STEP, TMDX, WING	AI, Cloud, growth, semiconductors, small cap, software, technology	PEGA CVLT INTA	Invesco Discovery Fund outperformed for 2024 through stock selection in technology and healthcare, despite Q4 underperformance. The team maintains constructive 2025 outlook expecting 2.5-3% GDP growth and moderating inflation. Technology innovation continues creating opportunities in premier growth compounders. Key additions include AI-focused Pegasystems and cloud provider CommVault Systems, while semiconductor connectivity leader Astera Labs drove strong performance.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 20 2026

2026 Q2

ALGM, BTSG, CHRD, ESE, FIVE, GH, LFUS, LGND, LSCC, MKSI, MTSI, NVMI, ONTO, PRIM, STRL, TSEM, TTMI

AI, Data centers, growth, industrials, semiconductors, small caps, technology

Invesco Discovery Fund outperformed significantly in Q2 2026 with a 30.63% return, driven by concentrated semiconductor and AI infrastructure holdings. Top contributors TTM Technologies, Sterling Infrastructure, and MACOM benefited from cyclical recovery and AI-driven demand. Management added three industrial positions targeting AI infrastructure and industrial renewal opportunities. The team maintains a constructive outlook on small-cap growth, supported by strong corporate fundamentals, broadening market participation, and robust AI innovation.

Apr 20 2026

2026 Q1

AEIS, AGX, IRTC, KNX, LITE, ONTO, RKLB, STEP, TSEM, VIAV, WGS

AI, growth, industrials, semiconductors, small cap, technology

Invesco Discovery Fund outperformed significantly in Q1 2026 despite market volatility from Middle East conflict. Strong stock selection in AI-benefiting semiconductor and optical connectivity names drove returns. Management maintains focus on premier growth compounders while prioritizing risk management until geopolitical resolution enables return to constructive positioning.

Jan 24 2026

2025 Q4

AVAV, BTSG, CRS, CVLT, CW, EHC, ESAB, FIVE, FN, FROG, GH, HLNE, LITE, LRN, MTSI, RKLB, RMBS, SITM, STEP, TSEM

AI, compounders, growth, industrials, innovation, semiconductors, small caps, technology

GH
EHC

Invesco Discovery Fund outperformed in Q4 2025 with 4.94% returns driven by AI infrastructure and semiconductor exposure. The team maintains constructive outlook on premier growth compounders, emphasizing industrials and IT sectors. Key catalysts include 2026 GDP growth expectations, record buybacks, and Fed rate cuts supporting continued technology-driven disruption opportunities.

Oct 20 2025

2025 Q3

AEIS, BTSG, CLS, CRS, CW, CWST, DUOL, EHC, EVR, FN, LSCC, PAR, PRIM, QTWO, SHAK, SITM, STEP, STRL, TTMI, TXRH

AI, growth, industrials, infrastructure, semiconductors, small caps, technology

Invesco Discovery Fund returned 7.85% in Q3 2025, underperforming its benchmark due to stock selection challenges. The fund maintains focus on premier growth compounders benefiting from AI infrastructure build-out and industrial renewal opportunities. Recent positioning emphasized industrials and technology sectors, with new semiconductor capital equipment exposure added to capitalize on AI-driven investment trends.

Jul 18 2025

2025 Q2

AEIS, BTSG, CLS, CRS, CW, CWST, DUOL, EHC, EVR, FN, LSCC, PAR, PRIM, QTWO, SHAK, SITM, STEP, STRL, TSEM, TTMI, TXRH

AI, growth, industrials, infrastructure, semiconductors, small caps, technology

AEIS
LSCC
TTMI
CLS
QTWO
TXRH

Invesco Discovery Fund underperformed in Q3 2025 due to stock selection challenges despite maintaining focus on premier growth compounders. The fund is positioned for AI infrastructure build-out and industrial renewal opportunities, with recent emphasis on semiconductors and utility infrastructure. Managers remain constructive on US equities given resilient economy, Fed rate cuts, and record corporate buyback activity.

Apr 30 2025

2025 Q1

AAON, ALAB, BBIO, CLS.TO, COOP, CRS, CWAN, CWST, CYBR, DUOL, EHC, ERJ, EVR, FRPT, FTI, GKOS, ITCI, KKR, LITE, OLLI, PRS, RKLB, WAY

aerospace, AI, Biotech, growth, healthcare, small cap, technology

WAY
RKLB
BBIO

Invesco Discovery Fund declined 12.16% in Q1 2025, underperforming its benchmark due to stock selection challenges and AI-related volatility. Policy uncertainty from the Trump administration created headwinds, prompting more conservative positioning. Despite near-term challenges, the team remains focused on premier growth compounders benefiting from technology-driven disruption across the global economy.

Mar 12 2025

2024 Q4

ALAB, AMZN, CLH, CLS, CRS, CYBR, DUOL, EHC, EVR, FIX, INTA, MOD, NVDA, ONTO, PEGA, PI, QTWO, STEP, TMDX, WING

AI, Cloud, growth, semiconductors, small cap, software, technology

PEGA
CVLT
INTA

Invesco Discovery Fund outperformed for 2024 through stock selection in technology and healthcare, despite Q4 underperformance. The team maintains constructive 2025 outlook expecting 2.5-3% GDP growth and moderating inflation. Technology innovation continues creating opportunities in premier growth compounders. Key additions include AI-focused Pegasystems and cloud provider CommVault Systems, while semiconductor connectivity leader Astera Labs drove strong performance.

QUARTER	THEMES	TAGS
2026 Q2	AI AI-related innovation and infrastructure buildout has remained robust, providing substantial investment opportunities. The fund holds multiple positions benefiting from AI tailwinds, including TTM Technologies and MACOM, which saw strong performance driven by cyclical recovery and structural AI-related demand in high-performance computing. Management views AI infrastructure growth as a key driver for portfolio companies.	Infrastructure High-performance computing Semiconductors Data Centers
	Semiconductors The fund maintains significant exposure to semiconductor companies across the value chain, including chip designers, equipment makers, and foundries. Multiple holdings such as Lattice Semiconductor, Allegro MicroSystems, Onto Innovation, Nova Ltd, and MKS Inc represent concentrated bets on the semiconductor cycle. Performance was strong in Q2, with companies benefiting from both cyclical recovery and structural AI-driven demand.	Chip designers Semi Equipment Foundries Cyclical recovery
	Data Centers Data center infrastructure is a core investment theme, with holdings like Sterling Infrastructure providing services for data center site development. Sterling reported strong results driven by growth in its E-Infrastructure segment serving data center projects, with order backlog increasing year over year. The fund also added Legence, which is positioned to benefit from AI infrastructure growth through its building systems engineering and maintenance services.	Infrastructure E-Infrastructure Site development Building systems
	Industrials Industrial renewal provides abundant investment opportunities according to management. The fund added three new industrial positions: LittelFuse (electrical protection components with improved execution under new leadership), Legence (energy-efficient building systems), and AZZ (hot-dip galvanizing with strong margins and cash flow generation). The industrials sector was a top contributor to relative performance in Q2.	Industrial renewal Electrical components Building systems Galvanizing
	Small Caps Management is encouraged by a broadening of equity market performance to include previously lagging small-cap stocks. The fund sold two positions (TechnipFMC and Carpenter) specifically because their market caps increased beyond the fund's typical investment range, indicating disciplined adherence to the small-cap mandate. The Russell 2000 Growth Index benchmark and 99-position portfolio reflect continued focus on this segment.	Russell 2000 Market cap discipline Broadening performance
	Buybacks Management observes record stock buybacks as a positive indicator for the market environment. This is cited alongside expanding merger and acquisition activity as evidence of corporate confidence and capital deployment that supports their constructive outlook for US equities.	Capital deployment Corporate confidence Shareholder returns
2026 Q1	AI AI-related innovation and infrastructure build-out has remained robust, driving strong demand for semiconductor equipment and optical connectivity solutions. The fund benefited from AI-driven demand through holdings like Lumentum and Advanced Energy Industries.	Infrastructure Semiconductors Optical Innovation Equipment
	Semiconductor Cycle The semiconductor equipment industry experienced strong demand due to robust AI spending. Companies like Advanced Energy Industries and Onto Innovation benefited from this trend, with Tower Semiconductor announcing increased fabrication facility capacity.	Equipment Foundries Capacity Manufacturing Demand
	Industrial Policy Industrial renewal provides abundant investment opportunities according to the managers. The fund maintains significant exposure to industrials with companies like Sterling Infrastructure and Curtiss-Wright Corp in the portfolio.	Renewal Infrastructure Manufacturing Policy Investment
2025 Q4	Housing Structural housing shortage in the US with rising millennial household formation. Higher mortgage rates reduce existing home supply, benefiting new homebuilders and their suppliers. BLDR positioned to benefit from this dynamic with value-add business representing 40%+ of revenue.	Homebuilders Building Materials Millennials Mortgage Rates
	Metallurgical Coal Significant underinvestment in metallurgical coal needed for worldwide steel consumption, particularly in Asia and India where high-grade met coal resources are limited. HCC completing capital investment cycle and positioned to generate substantial free cash flow.	Steel Asia India Capital Investment
	Energy Significant underinvestment in natural gas, oil and thermal coal which are necessary for world economies to function and grow. While renewables will play increasing role, the change will occur over decades. Offshore capital commitments expected to rebound in next 1-2 years.	Natural Gas Oil Offshore Underinvestment
	Regional Banks Flagstar has exceptional management ahead of the game in turning their business around. Trading at 67% of conservatively marked balance sheet versus similar banks at 140-160% of tangible book value. Turnaround progressing well with first profitable quarter reported.	Turnaround Management Valuation Balance Sheet
	AI Many businesses are transforming to benefit from investor excitement with questionable business plans but intense stock promotion. While AI will have impact, we are still very early in its lifecycle. Weak business fundamentals becoming more apparent.	Speculation Business Plans Early Lifecycle Fundamentals
	Private Credit Space has become very popular with lots of LP money chasing returns. Some sponsors have paid extremely high prices and lent on unfavorable terms. Many have lent into AI/data-center space to businesses with questionable futures.	LP Money High Prices Data Centers Questionable Futures
2025 Q3	AI The artificial intelligence narrative remained a bullish force during the quarter. The pace of AI-related innovation and infrastructure build-out has remained robust, providing substantial investment opportunities. The fund increased semiconductor capital equipment exposure in anticipation of increased investments fueled by AI.	Infrastructure Semiconductors Innovation Capital Equipment Build-out
	Semiconductors The fund added Advanced Energy Industries to increase semiconductor capital equipment exposure in anticipation of AI-driven investments. TTM Technologies was added as a printed circuit board manufacturer serving AI infrastructure build-out. Lattice Semiconductor was purchased with expectations of revenue growth returning above 20% through new product adoption.	Capital Equipment PCB Logic Products Revenue Growth AI Infrastructure
	Infrastructure Spending Industrial renewal provides abundant investment opportunities according to the managers. The fund emphasized industrials sector positioning with companies like Primoris Services and Sterling Infrastructure benefiting from utility infrastructure services and specialty construction projects.	Industrial Renewal Utility Infrastructure Construction Specialty Services Investment Opportunities
2025 Q2	AI The artificial intelligence narrative remained a bullish force during the quarter. The pace of AI-related innovation and infrastructure build-out has remained robust. The fund increased semiconductor capital equipment exposure in anticipation of increased investments fueled by AI.	Infrastructure Semiconductors Innovation Capital Equipment Build-out
	Semiconductors The fund added Advanced Energy Industries to increase semiconductor capital equipment exposure. TTM Technologies makes semiconductors used in AI infrastructure build-out. The company is expected to have strong revenue and earnings growth for several years.	Capital Equipment AI Infrastructure Revenue Growth Earnings Growth Manufacturing
	Infrastructure Spending Industrial renewal provides abundant investment opportunities according to the managers. Primoris is a leading US utility infrastructure services firm with service lines across electric power transmission and delivery, renewable development, gas operations and communications markets.	Utility Infrastructure Electric Power Renewable Development Communications Industrial Renewal
	Buybacks The managers observe record stock buybacks as a supportive factor for their constructive outlook on US equities. This is mentioned alongside strengthening merger and acquisition activity as positive market dynamics.	Stock Buybacks Market Dynamics US Equities Capital Allocation
2025 Q1	AI The fund experienced challenges from AI-related volatility, with the secular growth narrative being challenged by DeepSeek developments. Astera Labs declined significantly due to concerns about lower-cost AI models from China affecting the AI infrastructure investment thesis.	Artificial Intelligence Infrastructure Semiconductors Cloud DeepSeek
	Biotechnology The fund maintains exposure to biotech companies focused on rare diseases and CNS disorders. Bridgebio Pharma was added for its rare disease focus, particularly heart-related conditions, with better-than-expected drug launch performance.	Rare Diseases CNS Drug Development Pharmaceuticals Healthcare
	Aerospace The fund added Rocket Lab, a US-based aerospace company designing small and medium-class rockets and satellite components. Embraer performed well as a Brazil-based producer of commercial, executive and military aircraft with global customer base.	Space Satellites Defense Commercial Aviation Rockets
	Healthcare IT Waystar was added as a health care information service company connecting payors and providers by processing bills and insurance claims. The business is viewed as insulated from reimbursement changes and Washington policy noise.	Healthcare Software Claims Processing Medical Billing Healthcare Services IT Services
2024 Q4	AI Technology driven innovation has continued to disrupt large portions of the global economy, providing substantial opportunity through investment in premier growth compounders. The fund added Pegasystems which has increasingly integrated artificial intelligence functionality into its products, with newest AI releases representing more than 25% of its bookings. Intapp offers cloud-based and AI-powered software solutions for the financial services industry.	Artificial Intelligence Software Automation Innovation Technology
	Cloud The fund added CommVault Systems, a data management and protection software company that offers a platform for data security, recovery and cyber resilience, with growth accelerating due to increasing focus on integrating its services into companies' cloud-native workflows and infrastructure. Q2 Holdings offers cloud-based virtual banking solutions and outperformed due to strong quarterly earnings.	Cloud Computing Data Management Software Infrastructure Banking
	Semiconductors Astera Labs provides semiconductor-based connectivity solutions and was the largest contributor to performance, reporting revenue growth that exceeded expectations as customers like NVIDIA and Amazon increased adoption of new products. However, the fund sold Nova which develops monitoring systems for semiconductor manufacturing due to manufacturers cutting spending on wafer equipment from weak electronics demand.	Semiconductors Connectivity Manufacturing Equipment Electronics

QUARTER

THEMES

AI

AI-related innovation and infrastructure buildout has remained robust, providing substantial investment opportunities. The fund holds multiple positions benefiting from AI tailwinds, including TTM Technologies and MACOM, which saw strong performance driven by cyclical recovery and structural AI-related demand in high-performance computing. Management views AI infrastructure growth as a key driver for portfolio companies.

Infrastructure High-performance computing Semiconductors Data Centers

Semiconductors

The fund maintains significant exposure to semiconductor companies across the value chain, including chip designers, equipment makers, and foundries. Multiple holdings such as Lattice Semiconductor, Allegro MicroSystems, Onto Innovation, Nova Ltd, and MKS Inc represent concentrated bets on the semiconductor cycle. Performance was strong in Q2, with companies benefiting from both cyclical recovery and structural AI-driven demand.

Chip designers Semi Equipment Foundries Cyclical recovery

Data Centers

Data center infrastructure is a core investment theme, with holdings like Sterling Infrastructure providing services for data center site development. Sterling reported strong results driven by growth in its E-Infrastructure segment serving data center projects, with order backlog increasing year over year. The fund also added Legence, which is positioned to benefit from AI infrastructure growth through its building systems engineering and maintenance services.

Infrastructure E-Infrastructure Site development Building systems

Industrials

Industrial renewal provides abundant investment opportunities according to management. The fund added three new industrial positions: LittelFuse (electrical protection components with improved execution under new leadership), Legence (energy-efficient building systems), and AZZ (hot-dip galvanizing with strong margins and cash flow generation). The industrials sector was a top contributor to relative performance in Q2.

Industrial renewal Electrical components Building systems Galvanizing

Small Caps

Management is encouraged by a broadening of equity market performance to include previously lagging small-cap stocks. The fund sold two positions (TechnipFMC and Carpenter) specifically because their market caps increased beyond the fund's typical investment range, indicating disciplined adherence to the small-cap mandate. The Russell 2000 Growth Index benchmark and 99-position portfolio reflect continued focus on this segment.

Russell 2000 Market cap discipline Broadening performance

Buybacks

Management observes record stock buybacks as a positive indicator for the market environment. This is cited alongside expanding merger and acquisition activity as evidence of corporate confidence and capital deployment that supports their constructive outlook for US equities.

Capital deployment Corporate confidence Shareholder returns

2026 Q1

AI

AI-related innovation and infrastructure build-out has remained robust, driving strong demand for semiconductor equipment and optical connectivity solutions. The fund benefited from AI-driven demand through holdings like Lumentum and Advanced Energy Industries.

Infrastructure Semiconductors Optical Innovation Equipment

Semiconductor Cycle

The semiconductor equipment industry experienced strong demand due to robust AI spending. Companies like Advanced Energy Industries and Onto Innovation benefited from this trend, with Tower Semiconductor announcing increased fabrication facility capacity.

Equipment Foundries Capacity Manufacturing Demand

Industrial Policy

Industrial renewal provides abundant investment opportunities according to the managers. The fund maintains significant exposure to industrials with companies like Sterling Infrastructure and Curtiss-Wright Corp in the portfolio.

Renewal Infrastructure Manufacturing Policy Investment

2025 Q4

Housing

Structural housing shortage in the US with rising millennial household formation. Higher mortgage rates reduce existing home supply, benefiting new homebuilders and their suppliers. BLDR positioned to benefit from this dynamic with value-add business representing 40%+ of revenue.

Homebuilders Building Materials Millennials Mortgage Rates

Metallurgical Coal

Significant underinvestment in metallurgical coal needed for worldwide steel consumption, particularly in Asia and India where high-grade met coal resources are limited. HCC completing capital investment cycle and positioned to generate substantial free cash flow.

Steel Asia India Capital Investment

Energy

Significant underinvestment in natural gas, oil and thermal coal which are necessary for world economies to function and grow. While renewables will play increasing role, the change will occur over decades. Offshore capital commitments expected to rebound in next 1-2 years.

Natural Gas Oil Offshore Underinvestment

Regional Banks

Flagstar has exceptional management ahead of the game in turning their business around. Trading at 67% of conservatively marked balance sheet versus similar banks at 140-160% of tangible book value. Turnaround progressing well with first profitable quarter reported.

Turnaround Management Valuation Balance Sheet

AI

Many businesses are transforming to benefit from investor excitement with questionable business plans but intense stock promotion. While AI will have impact, we are still very early in its lifecycle. Weak business fundamentals becoming more apparent.

Speculation Business Plans Early Lifecycle Fundamentals

Private Credit

Space has become very popular with lots of LP money chasing returns. Some sponsors have paid extremely high prices and lent on unfavorable terms. Many have lent into AI/data-center space to businesses with questionable futures.

LP Money High Prices Data Centers Questionable Futures

2025 Q3

AI

The artificial intelligence narrative remained a bullish force during the quarter. The pace of AI-related innovation and infrastructure build-out has remained robust, providing substantial investment opportunities. The fund increased semiconductor capital equipment exposure in anticipation of increased investments fueled by AI.

Infrastructure Semiconductors Innovation Capital Equipment Build-out

Semiconductors

The fund added Advanced Energy Industries to increase semiconductor capital equipment exposure in anticipation of AI-driven investments. TTM Technologies was added as a printed circuit board manufacturer serving AI infrastructure build-out. Lattice Semiconductor was purchased with expectations of revenue growth returning above 20% through new product adoption.

Capital Equipment PCB Logic Products Revenue Growth AI Infrastructure

Infrastructure Spending

Industrial renewal provides abundant investment opportunities according to the managers. The fund emphasized industrials sector positioning with companies like Primoris Services and Sterling Infrastructure benefiting from utility infrastructure services and specialty construction projects.

Industrial Renewal Utility Infrastructure Construction Specialty Services Investment Opportunities

2025 Q2

AI

The artificial intelligence narrative remained a bullish force during the quarter. The pace of AI-related innovation and infrastructure build-out has remained robust. The fund increased semiconductor capital equipment exposure in anticipation of increased investments fueled by AI.

Infrastructure Semiconductors Innovation Capital Equipment Build-out

Semiconductors

The fund added Advanced Energy Industries to increase semiconductor capital equipment exposure. TTM Technologies makes semiconductors used in AI infrastructure build-out. The company is expected to have strong revenue and earnings growth for several years.

Capital Equipment AI Infrastructure Revenue Growth Earnings Growth Manufacturing

Infrastructure Spending

Industrial renewal provides abundant investment opportunities according to the managers. Primoris is a leading US utility infrastructure services firm with service lines across electric power transmission and delivery, renewable development, gas operations and communications markets.

Utility Infrastructure Electric Power Renewable Development Communications Industrial Renewal

Buybacks

The managers observe record stock buybacks as a supportive factor for their constructive outlook on US equities. This is mentioned alongside strengthening merger and acquisition activity as positive market dynamics.

Stock Buybacks Market Dynamics US Equities Capital Allocation

2025 Q1

AI

The fund experienced challenges from AI-related volatility, with the secular growth narrative being challenged by DeepSeek developments. Astera Labs declined significantly due to concerns about lower-cost AI models from China affecting the AI infrastructure investment thesis.

Artificial Intelligence Infrastructure Semiconductors Cloud DeepSeek

Biotechnology

The fund maintains exposure to biotech companies focused on rare diseases and CNS disorders. Bridgebio Pharma was added for its rare disease focus, particularly heart-related conditions, with better-than-expected drug launch performance.

Rare Diseases CNS Drug Development Pharmaceuticals Healthcare

Aerospace

The fund added Rocket Lab, a US-based aerospace company designing small and medium-class rockets and satellite components. Embraer performed well as a Brazil-based producer of commercial, executive and military aircraft with global customer base.

Space Satellites Defense Commercial Aviation Rockets

Healthcare IT

Waystar was added as a health care information service company connecting payors and providers by processing bills and insurance claims. The business is viewed as insulated from reimbursement changes and Washington policy noise.

Healthcare Software Claims Processing Medical Billing Healthcare Services IT Services

2024 Q4

AI

Technology driven innovation has continued to disrupt large portions of the global economy, providing substantial opportunity through investment in premier growth compounders. The fund added Pegasystems which has increasingly integrated artificial intelligence functionality into its products, with newest AI releases representing more than 25% of its bookings. Intapp offers cloud-based and AI-powered software solutions for the financial services industry.

Artificial Intelligence Software Automation Innovation Technology

Cloud

The fund added CommVault Systems, a data management and protection software company that offers a platform for data security, recovery and cyber resilience, with growth accelerating due to increasing focus on integrating its services into companies' cloud-native workflows and infrastructure. Q2 Holdings offers cloud-based virtual banking solutions and outperformed due to strong quarterly earnings.

Cloud Computing Data Management Software Infrastructure Banking

Semiconductors

Astera Labs provides semiconductor-based connectivity solutions and was the largest contributor to performance, reporting revenue growth that exceeded expectations as customers like NVIDIA and Amazon increased adoption of new products. However, the fund sold Nova which develops monitoring systems for semiconductor manufacturing due to manufacturers cutting spending on wafer equipment from weak electronics demand.

Semiconductors Connectivity Manufacturing Equipment Electronics

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jan 24, 2026	Fund Letters	Ronald Zibelli	GH	Guardant Health Inc.	Health Care	Health Care Technology	Bull	NASDAQ	diagnostics, Genomics, growth, liquid biopsy, Oncology	Login
Jan 24, 2026	Fund Letters	Ronald Zibelli	EHC	Encompass Health Corp.	Health Care	Health Care Facilities	Bull	New York Stock Exchange	Demographics, Healthcare services, Hospitals, Medicare, Rehabilitation	Login
Sep 30, 2025	Fund Letters	Invesco Discovery Fund	TXRH	Texas Roadhouse	Consumer Discretionary	Hotels, Restaurants & Leisure	Bear	NASDAQ	beef prices, Casual Dining, Commodity Inflation, margin pressure, Restaurant Economics	Login
Sep 30, 2025	Fund Letters	Invesco Discovery Fund	QTWO	Q2 Holdings	Information Technology	Software	Neutral	NYSE	Customer Consolidation, digital banking, financial technology, M&A risk, portfolio optimization	Login
Sep 30, 2025	Fund Letters	Invesco Discovery Fund	LSCC	Lattice Semiconductor	Information Technology	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	Inventory Cycle, product innovation, Programmable Logic, Revenue Growth, Semiconductor Recovery	Login
Sep 30, 2025	Fund Letters	Invesco Discovery Fund	AEIS	Advanced Energy Industries	Information Technology	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	AI infrastructure, Capital equipment, power solutions, Precision Technology, semiconductor equipment	Login
Sep 30, 2025	Fund Letters	Invesco Discovery Fund	TTMI	TTM Technologies	Information Technology	Electronic Equipment, Instruments & Components	Bull	NASDAQ	AI infrastructure, manufacturing, Multi-year Growth, Printed Circuit Boards, Semiconductor Components	Login
Sep 30, 2025	Fund Letters	Invesco Discovery Fund	CLS	Celestica	Information Technology	Electronic Equipment, Instruments & Components	Neutral	NYSE	AI revenue, Electronics Manufacturing, market share gains, Size Constraints, supply chain	Login
Mar 31, 2025	Fund Letters	Invesco Discovery Fund	RKLB	Rocket Lab USA Inc	Industrials	Aerospace & Defense	Bull	NASDAQ	Aerospace, Commercial Space, government contracts, Proven Execution, Rocket Manufacturing, Satellite Components, Small Satellite Launch, Space Technology	Login
Mar 31, 2025	Fund Letters	Invesco Discovery Fund	BBIO	BridgeBio Pharma Inc	Health Care	Biotechnology	Bull	NASDAQ	biotechnology, Commercial Launch, drug approval, Genetic Diseases, Heart Disease, Orphan drugs, rare diseases, Specialty pharma	Login
Mar 31, 2025	Fund Letters	Invesco Discovery Fund	WAY	Waystar	Health Care	Health Care Technology	Bull	NASDAQ	Billing Services, Claims Processing, Defensive growth, healthcare infrastructure, Healthcare IT, Healthcare Technology, Revenue Cycle Management, SaaS	Login
Dec 31, 2024	Fund Letters	Invesco Discovery Fund	PEGA	Pegasystems Inc	Information Technology	Application Software	Bull	NASDAQ	AI integration, Customer Engagement, Digital transformation, Enterprise software, growth, SaaS, workflow automation	Login
Dec 31, 2024	Fund Letters	Invesco Discovery Fund	CVLT	CommVault Systems	Information Technology	Systems Software	Bull	NASDAQ	cloud-native, Cyber Resilience, cybersecurity, Data Management, Data Protection, Enterprise software, growth	Login
Dec 31, 2024	Fund Letters	Invesco Discovery Fund	INTA	Intapp Inc	Information Technology	Application Software	Bull	NASDAQ	AI-powered, cloud-based, Deal Activity, Financial Services Software, IPO, M&A, professional services	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jan 24, 2026

Fund Letters

Ronald Zibelli

Guardant Health Inc.

Health Care

Health Care Technology

Bull

NASDAQ

diagnostics, Genomics, growth, liquid biopsy, Oncology

Jan 24, 2026

Fund Letters

Ronald Zibelli

EHC

Encompass Health Corp.

Health Care

Health Care Facilities

Bull

New York Stock Exchange

Demographics, Healthcare services, Hospitals, Medicare, Rehabilitation

Sep 30, 2025

Fund Letters

Invesco Discovery Fund

TXRH

Texas Roadhouse

Consumer Discretionary

Hotels, Restaurants & Leisure

Bear

NASDAQ

beef prices, Casual Dining, Commodity Inflation, margin pressure, Restaurant Economics

Sep 30, 2025

Fund Letters

Invesco Discovery Fund

QTWO

Q2 Holdings

Information Technology

Software

Neutral

NYSE

Customer Consolidation, digital banking, financial technology, M&A risk, portfolio optimization

Sep 30, 2025

Fund Letters

Invesco Discovery Fund

LSCC

Lattice Semiconductor

Information Technology

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

Inventory Cycle, product innovation, Programmable Logic, Revenue Growth, Semiconductor Recovery

Sep 30, 2025

Fund Letters

Invesco Discovery Fund

AEIS

Advanced Energy Industries

Information Technology

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

AI infrastructure, Capital equipment, power solutions, Precision Technology, semiconductor equipment

Sep 30, 2025

Fund Letters

Invesco Discovery Fund

TTMI

TTM Technologies

Information Technology

Electronic Equipment, Instruments & Components

Bull

NASDAQ

AI infrastructure, manufacturing, Multi-year Growth, Printed Circuit Boards, Semiconductor Components

Sep 30, 2025

Fund Letters

Invesco Discovery Fund

CLS

Celestica

Information Technology

Electronic Equipment, Instruments & Components

Neutral

NYSE

AI revenue, Electronics Manufacturing, market share gains, Size Constraints, supply chain

Mar 31, 2025

Fund Letters

Invesco Discovery Fund

RKLB

Rocket Lab USA Inc

Industrials

Aerospace & Defense

Bull

NASDAQ

Aerospace, Commercial Space, government contracts, Proven Execution, Rocket Manufacturing, Satellite Components, Small Satellite Launch, Space Technology

Mar 31, 2025

Fund Letters

Invesco Discovery Fund

BBIO

BridgeBio Pharma Inc

Health Care

Biotechnology

Bull

NASDAQ

biotechnology, Commercial Launch, drug approval, Genetic Diseases, Heart Disease, Orphan drugs, rare diseases, Specialty pharma

Mar 31, 2025

Fund Letters

Invesco Discovery Fund

WAY

Waystar

Health Care

Health Care Technology

Bull

NASDAQ

Billing Services, Claims Processing, Defensive growth, healthcare infrastructure, Healthcare IT, Healthcare Technology, Revenue Cycle Management, SaaS

Dec 31, 2024

Fund Letters

Invesco Discovery Fund

PEGA

Pegasystems Inc

Information Technology

Application Software

Bull

NASDAQ

AI integration, Customer Engagement, Digital transformation, Enterprise software, growth, SaaS, workflow automation

Dec 31, 2024

Fund Letters

Invesco Discovery Fund

CVLT

CommVault Systems

Information Technology

Systems Software

Bull

NASDAQ

cloud-native, Cyber Resilience, cybersecurity, Data Management, Data Protection, Enterprise software, growth

Dec 31, 2024

Fund Letters

Invesco Discovery Fund

INTA

Intapp Inc

Information Technology

Application Software

Bull

NASDAQ

AI-powered, cloud-based, Deal Activity, Financial Services Software, IPO, M&A, professional services

TICKER	COMMENTARY
BTSG	BrightSpring Health Services Inc is the fund's largest holding at 2.53% of total market value.
MKSI	MKS Inc is the fund's second largest holding at 2.40% of total market value. MKS Inc returned 93.70% during the quarter and contributed 1.29% to the fund's return.
TTMI	TTM Technologies Inc is the fund's third largest holding at 2.21% of total market value. TTM Technologies is a global manufacturer of printed circuit boards and radio frequency components. During the quarter, management reported strong quarterly earnings and the stock price benefited from both cyclical recovery and structural tailwinds tied to AI and high-performance computing. TTM Technologies returned 91.97% and was the largest contributor to absolute return for the quarter, contributing 1.97% to the fund's return.
LSCC	Lattice Semiconductor Corp is the fund's fourth largest holding at 2.21% of total market value.
ALGM	Allegro MicroSystems Inc is the fund's fifth largest holding at 2.06% of total market value.
ONTO	Onto Innovation Inc is the fund's sixth largest holding at 2.01% of total market value.
LGND	Ligand Pharmaceuticals Inc is the fund's seventh largest holding at 2.00% of total market value.
GH	Guardant Health Inc is the fund's eighth largest holding at 1.93% of total market value.
ESE	ESCO Technologies Inc is the fund's ninth largest holding at 1.88% of total market value.
NVMI	Nova Ltd is the fund's tenth largest holding at 1.77% of total market value.
LFUS	LittelFuse is an industrial technology company that makes electrical protection, sensing and power control components. Under new leadership, the company has focused on improving execution through commercial strategy enhancements, portfolio and operational optimization, and a more disciplined approach to capital allocation and acquisitions. The fund added this position during the quarter.
STRL	Sterling Infrastructure provides infrastructure services for data centers, transportation and building foundations. Management reported results that exceeded expectations, driven primarily by growth in its E-Infrastructure segment, which serves data center and semiconductor site-development projects. The company's order backlog increased year over year, and management raised full-year 2026 guidance. Sterling Infrastructure returned 106.09% during the quarter and contributed 1.78% to the fund's return, making it the second largest contributor to absolute return.
MTSI	MACOM designs and manufactures high-performance semiconductor components. During the quarter, management reported strong quarterly earnings and the stock price also benefited from both cyclical recovery and structural tailwinds tied to AI and high-performance computing. MACOM returned 71.28% during the quarter and contributed 1.64% to the fund's return, making it the third largest contributor to absolute return.
TSEM	Tower Semiconductor Ltd returned 48.53% during the quarter and contributed 1.40% to the fund's return, making it the fourth largest contributor to absolute return.
FIVE	Five Below is a specialty retailer offering trendy, value priced products aimed at tween and teen customers. Although the company delivered strong quarterly results, shares pulled back amid apparent concerns about potential moderation in certain product trends and tougher comparable store sales ahead. Despite these concerns, we believe the business continues to benefit from solid operational momentum and ongoing growth initiatives. Five Below returned -21.31% during the quarter and detracted -0.34% from the fund's return, making it the largest detractor from absolute return.
CHRD	Chord Energy is the leading pure-play oil and gas exploration and production operator in the Williston Basin of the Bakken. The US/Iran ceasefire, progress toward ending the conflict and the reopening of the Strait of Hormuz appeared to weigh on the broader energy sector and the stock. Chord Energy returned -18.89% during the quarter and detracted -0.32% from the fund's return.
PRIM	Primoris Services Corporation returned -26.73% during the quarter and detracted -0.27% from the fund's return.

TICKER

COMMENTARY

BTSG

BrightSpring Health Services Inc is the fund's largest holding at 2.53% of total market value.

MKSI

MKS Inc is the fund's second largest holding at 2.40% of total market value. MKS Inc returned 93.70% during the quarter and contributed 1.29% to the fund's return.

TTMI

TTM Technologies Inc is the fund's third largest holding at 2.21% of total market value. TTM Technologies is a global manufacturer of printed circuit boards and radio frequency components. During the quarter, management reported strong quarterly earnings and the stock price benefited from both cyclical recovery and structural tailwinds tied to AI and high-performance computing. TTM Technologies returned 91.97% and was the largest contributor to absolute return for the quarter, contributing 1.97% to the fund's return.

LSCC

Lattice Semiconductor Corp is the fund's fourth largest holding at 2.21% of total market value.

ALGM

Allegro MicroSystems Inc is the fund's fifth largest holding at 2.06% of total market value.

ONTO

Onto Innovation Inc is the fund's sixth largest holding at 2.01% of total market value.

LGND

Ligand Pharmaceuticals Inc is the fund's seventh largest holding at 2.00% of total market value.

Guardant Health Inc is the fund's eighth largest holding at 1.93% of total market value.

ESE

ESCO Technologies Inc is the fund's ninth largest holding at 1.88% of total market value.

NVMI

Nova Ltd is the fund's tenth largest holding at 1.77% of total market value.

LFUS

LittelFuse is an industrial technology company that makes electrical protection, sensing and power control components. Under new leadership, the company has focused on improving execution through commercial strategy enhancements, portfolio and operational optimization, and a more disciplined approach to capital allocation and acquisitions. The fund added this position during the quarter.

STRL

Sterling Infrastructure provides infrastructure services for data centers, transportation and building foundations. Management reported results that exceeded expectations, driven primarily by growth in its E-Infrastructure segment, which serves data center and semiconductor site-development projects. The company's order backlog increased year over year, and management raised full-year 2026 guidance. Sterling Infrastructure returned 106.09% during the quarter and contributed 1.78% to the fund's return, making it the second largest contributor to absolute return.

MTSI

MACOM designs and manufactures high-performance semiconductor components. During the quarter, management reported strong quarterly earnings and the stock price also benefited from both cyclical recovery and structural tailwinds tied to AI and high-performance computing. MACOM returned 71.28% during the quarter and contributed 1.64% to the fund's return, making it the third largest contributor to absolute return.

TSEM

Tower Semiconductor Ltd returned 48.53% during the quarter and contributed 1.40% to the fund's return, making it the fourth largest contributor to absolute return.

FIVE

Five Below is a specialty retailer offering trendy, value priced products aimed at tween and teen customers. Although the company delivered strong quarterly results, shares pulled back amid apparent concerns about potential moderation in certain product trends and tougher comparable store sales ahead. Despite these concerns, we believe the business continues to benefit from solid operational momentum and ongoing growth initiatives. Five Below returned -21.31% during the quarter and detracted -0.34% from the fund's return, making it the largest detractor from absolute return.

CHRD

Chord Energy is the leading pure-play oil and gas exploration and production operator in the Williston Basin of the Bakken. The US/Iran ceasefire, progress toward ending the conflict and the reopening of the Strait of Hormuz appeared to weigh on the broader energy sector and the stock. Chord Energy returned -18.89% during the quarter and detracted -0.32% from the fund's return.

PRIM

Primoris Services Corporation returned -26.73% during the quarter and detracted -0.27% from the fund's return.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
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Ticker

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Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells 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

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Semiconductors

Data Centers

Industrials

Small Caps

Buybacks

AI

Semiconductor Cycle

Industrial Policy

Housing

Metallurgical Coal

Energy

Regional Banks

AI

Private Credit

AI

Semiconductors

Infrastructure Spending

AI

Semiconductors

Infrastructure Spending

Buybacks

AI

Biotechnology

Aerospace

Healthcare IT

AI

Cloud

Semiconductors

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Ronald Zibelli Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Invesco Discovery Fund