Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.87% | -3.05% | 17.56% |
| 2025 |
|---|
| 17.6% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.87% | -3.05% | 17.56% |
| 2025 |
|---|
| 17.6% |
The Loomis Sayles Global Growth Fund posted -3.05% returns in Q4 2025, underperforming the MSCI ACWI Index by 634 basis points, though delivering strong 17.56% annual returns. The fund maintains a concentrated approach, investing in high-quality businesses with sustainable competitive advantages when trading at significant discounts to intrinsic value. Top contributors included Alphabet, benefiting from AI-driven search growth and cloud acceleration; Shopify, with 32% revenue growth and expanding market share; and Fanuc, leveraging factory automation demand. Key detractors were Oracle, despite strong RPO growth, Netflix, amid Warner Bros. acquisition uncertainty, and MercadoLibre, facing elevated investment cycles. The portfolio reflects secular growth themes including AI adoption, cloud infrastructure transition, streaming entertainment expansion, and e-commerce penetration in emerging markets. Manager Aziz Hamzaogullari initiated positions in Ferrari and Nike while trimming Alibaba, Fanuc, and Qualcomm. The portfolio trades at approximately 46% discount to estimated intrinsic value, with the manager maintaining conviction in long-term structural growth drivers across holdings.
The fund seeks to invest in companies with sustainable competitive advantages, long-term structural growth drivers, attractive cash flow returns on invested capital, and management teams focused on creating long-term value when they trade at significant discounts to intrinsic value.
The manager remains committed to the long-term investment approach of investing in high-quality businesses with sustainable competitive advantages and profitable growth when they trade at significant discounts to intrinsic value. The overall portfolio discount to intrinsic value was approximately 45.8% as of December 31, 2025, with estimated annualized portfolio turnover of approximately 8.9% since inception.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 9 2026 | 2025 Q4 | 6954.T, AMZN, BA, BABA, GOOGL, MELI, META, MSFT, NFLX, NKE, NVO, ORCL, QCOM, RACE, SHOP.TO, TSLA, UAA, UL | AI, Automation, Cloud, global, growth, Quality, Streaming, technology |
GOOG SHOP 6954 JP ORCL NFLX MELI |
Loomis Sayles Global Growth Fund delivered strong 17.56% annual returns despite Q4 underperformance. The concentrated portfolio benefits from AI acceleration at Alphabet, e-commerce growth at Shopify and MercadoLibre, and automation demand at Fanuc. Manager initiated Ferrari and Nike positions while maintaining conviction in quality businesses trading at significant discounts to intrinsic value. |
| Nov 8 2025 | 2025 Q3 | 0700.HK, AAPL, ADYEY, AMZN, BABA, GOOGL, MELI, META, MSFT, NFLX, NVDA, NVO, ORCL, RIVN, SHOP.TO, TSLA, UBER, VRTX | AI, Cloud, Electric Vehicles, global, growth, long-term, Quality, technology | LFCR | Global Growth Fund delivered solid Q3 returns driven by AI and cloud infrastructure themes across Tesla, Alphabet, and Oracle holdings. Despite near-term EV delivery challenges and regulatory uncertainties, the manager maintains conviction in secular growth drivers including electric vehicle adoption, digital transformation, and streaming entertainment. Portfolio trades at 43% discount to intrinsic value with selective positioning in high-quality businesses. |
| Jul 27 2025 | 2025 Q2 | AMZN, GOOGL, MC.PA, MELI, META, MSFT, NFLX, ORCL, SHOP.TO, TCOM, TSLA, V, VRTX, YUMC | global, growth, healthcare, long-term, Quality, technology, value |
NFLX MELI ORCL TCOM YUMC VRTX |
Strong Q2 performance driven by Netflix's streaming dominance, MercadoLibre's Latin American e-commerce leadership, and Oracle's accelerating cloud transition. Portfolio maintains concentrated exposure to high-quality businesses with sustainable competitive advantages trading at significant discounts to intrinsic value. Long-term approach continues with patient capital deployment and selective positioning in structurally advantaged companies. |
| Mar 31 2025 | 2025 Q1 | ADYEN.AS, AMZN, BABA, DE, GOOGL, MELI, META, NFLX, NVS, ORCL, QCOM, SHOP, TSLA, V | E-Commerce, global, growth, healthcare, long-term, Quality, technology | - | Global growth fund underperformed in Q1 2025 with -3.35% returns versus -1.32% benchmark. Strong performance from MercadoLibre, Alibaba, and Novartis offset weakness in Tesla, Alphabet, and Amazon. Portfolio maintains concentrated exposure to quality growth companies in e-commerce, electric vehicles, cloud computing, and pharmaceuticals trading at significant discounts to intrinsic value estimates. |
| Jun 30 2024 | 2024 Q2 | 0700.HK, ADYEN.AS, ALNY, AMZN, BA, CRSP, GOOGL, MELI, META, MSFT, NFLX, NVO, ORCL, SHOP, TSLA, VRTX | AI, Biotechnology, Cloud, global, growth, healthcare, Quality, technology | - | Loomis Sayles Global Growth Fund outperformed in Q2 with a concentrated portfolio of quality growth companies trading below intrinsic value. Strong performance from Alphabet's AI and cloud growth, Alnylam's gene therapy progress, and Tencent's gaming recovery offset weakness in Adyen and Shopify. The fund maintains a 42% portfolio discount to intrinsic value. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIManager draws parallels between today's AI-driven market concentration and the 2014-15 oil collapse, warning that AI has become a macroeconomic assumption embedded in capital expenditure plans and valuations. Physical constraints like energy intensity and grid limitations complicate AI scalability assumptions. |
Artificial Intelligence Data Centers Valuations Energy Infrastructure Technology |
EnergyEnergy plays a critical role in AI infrastructure economics through data center power consumption. Rising electricity prices and grid constraints in data-center-heavy regions are compressing margins and extending deployment timelines, creating physical bottlenecks to AI scaling. |
Electricity Data Centers Grid Infrastructure Power Pricing Utilities | |
Small CapsThe Small Cap Strategy returned 6.21% gross versus Russell 2000's 12.81% return. Manager likes the current portfolio fundamentals with strong balance sheets and resilient cash flows, though markets haven't rewarded fundamentals on a linear schedule requiring continued patience. |
Russell 2000 Value Investing Fundamentals Portfolio Management | |
| 2025 Q3 |
AIMultiple portfolio companies are leveraging AI capabilities across their businesses. Alphabet benefits from AI overviews and AI Mode search functionality with over 2 billion monthly users. Oracle's cloud infrastructure is specifically built for AI workloads with major contracts from OpenAI, xAI, and Meta. Tesla continues advancing autonomous driving through AI training on supercomputers with FSD version 13 representing a step change improvement. |
Machine Learning Autonomous Driving Cloud Infrastructure Search Technology Data Analytics |
CloudCloud infrastructure represents a major growth driver across multiple holdings. Google Cloud accelerated growth to 32% year-over-year with improving margins reaching 21%. Oracle's cloud business is targeting over $100 billion in revenue by 2029, up from just over $10 billion in 2025, with remaining performance obligations growing 359% year-over-year to $455 billion. |
Infrastructure SaaS Data Centers Enterprise Software Scalability | |
Electric VehiclesTesla remains the core EV holding despite near-term delivery challenges. The manager believes secular EV adoption will accelerate driven by battery technology advances, cost parity, and government incentives. Tesla maintains technology leadership and strong market position with around 25% revenue share globally, while competitors like traditional automakers are pulling back on EV investments. |
Battery Technology Autonomous Driving Charging Infrastructure Manufacturing Market Share | |
E-commerceMercadoLibre continues executing well in Latin American e-commerce with gross merchandise volume growing 37% year-over-year. The company benefits from lower e-commerce penetration rates in Latin America versus other geographies and continues investing in fulfillment centers and logistics to improve user experience and extend market leadership. |
Marketplaces Logistics Payments Latin America Digital Commerce | |
StreamingNetflix reported strong results with revenue growing 17% in constant currency and operating margins expanding 700 basis points to 34%. The company completed rollout of its internal ad tech platform and is targeting a doubling of advertising revenue in 2025. Management expects the secular shift from linear television to streaming to continue benefiting the platform. |
Content Advertising Subscription Global Expansion Technology Platform | |
PaymentsMultiple companies benefit from the secular shift to electronic payments. MercadoLibre's fintech revenue grew 63% with total platform payment volumes increasing 61% to $65 billion. Adyen continues expanding market share in merchant acquisition despite some headwinds from U.S. tariff changes affecting Asia-based merchants. |
Digital Payments Fintech Merchant Services Financial Technology Transaction Processing | |
| 2025 Q2 |
StreamingNetflix continues to demonstrate strong competitive advantages through its global scale, content investment, and subscriber growth. The company is successfully transitioning to an ad-supported model while expanding internationally, with management expecting accelerating revenue growth driven by pricing power and new monetization strategies. |
Netflix SVOD Content Subscribers Advertising |
E-commerceMercadoLibre maintains its leadership position across Latin America with strong growth in both commerce and fintech services. The company continues to gain market share while investing heavily in infrastructure and logistics to improve customer experience and expand its addressable market. |
MercadoLibre Latin America Marketplace Fintech GMV | |
CloudOracle is successfully transitioning from traditional on-premise software to cloud-based subscription services, with cloud revenues now representing over 40% of total revenues. The company expects revenue growth to accelerate as the cloud transition progresses and benefits from higher customer lifetime value. |
Oracle Database Subscription Infrastructure Enterprise | |
TravelTrip.com continues to benefit from the recovery in China travel markets and growing international demand. Cross-border flight capacity has recovered to 83% of pre-pandemic levels, with management expecting further improvement and sustained mid-teens revenue growth. |
Trip.com China OTA Recovery International | |
RestaurantsYum China demonstrates resilience in a challenging consumer environment through value offerings and continued expansion into lower-tier cities. The company maintains attractive unit economics with two-year payback periods while growing its loyalty program to over 540 million members. |
Yum China KFC Pizza Hut Expansion Loyalty | |
BiotechnologyVertex Pharmaceuticals continues to innovate in cystic fibrosis treatments while expanding into new therapeutic areas. The company has successfully launched next-generation therapies and is building a diversified pipeline beyond CF, including gene therapy and pain management. |
Vertex Cystic Fibrosis Gene Therapy Pipeline Innovation | |
| 2025 Q1 |
E-commerceThe fund maintains significant exposure to e-commerce leaders including MercadoLibre in Latin America and Amazon globally. MercadoLibre continues to execute well with strong GMV growth and market share gains across commerce, payments, and financial services. Amazon's e-commerce business showed solid growth with 11% unit sales growth suggesting continued market share expansion. |
Marketplaces Payments Fintech GMV Digital Commerce |
Electric VehiclesTesla remains a core holding despite near-term headwinds from elevated interest rates and brand concerns. The manager believes Tesla's cost leadership, technology advantages, and upcoming lower-priced models position it well for long-term EV adoption. Full self-driving software represents a significant monetization opportunity with margins significantly higher than current company average. |
Autonomous Driving Battery Technology EV Adoption Software Monetization Manufacturing Scale | |
CloudThe portfolio includes major cloud providers Amazon Web Services and Google Cloud. AWS showed stabilization with 19% growth as clients shifted from optimization to innovation, while AI workloads represent a multibillion-dollar revenue run rate growing at triple-digit rates. Google Cloud decelerated to 30% growth but maintains strong operating leverage. |
AI Workloads Enterprise IT Infrastructure Operating Leverage Market Share | |
AIArtificial intelligence represents a key growth driver across multiple holdings. Google reported triple-digit AI-related revenue growth for the sixth consecutive quarter, while Amazon's AI-based workloads show triple-digit growth rates. Tesla's FSD version 13 represents the first AI-only training version delivering step-change improvements in autonomous driving capabilities. |
Machine Learning Autonomous Systems Data Processing Neural Networks Software Intelligence | |
PharmaceuticalsNovartis represents the fund's healthcare exposure with strong performance from established medicines and novel drug launches. Key growth drivers include Pluvicto for prostate cancer, Leqvio for cardiovascular disease, and Kisqali for breast cancer. The company benefits from a vast clinical pipeline of approximately 45 new molecular entities supporting long-term growth. |
Drug Development Clinical Pipeline Oncology Cardiovascular R&D Innovation | |
| 2024 Q2 |
AIGoogle has been operating as an AI-first company for much of the past decade, with nearly 80% of advertising customers using at least one AI-powered search product. The company continues integrating generative AI functionality into search and providing AI services through its cloud business. |
Artificial Intelligence Machine Learning Search Cloud Advertising |
CloudGoogle Cloud reported 28% year-over-year growth with accelerating momentum, representing 12% of total Alphabet revenue. The segment achieved 9% operating margins, improving from 3% in the prior year as the cloud business scales. |
Infrastructure Platform Software Enterprise Computing | |
Gene TherapyAlnylam Pharmaceuticals leads in siRNA-based therapies with five approved treatments and over ten in clinical trials. CRISPR Therapeutics has launched Casgevy for blood disorders and continues advancing CAR-T therapies for cancer and autoimmune diseases. |
RNA CRISPR Biotechnology Rare Diseases Therapeutics | |
E-commerceShopify generated $61 billion in GMV with 23% growth, outpacing overall retail sales and gaining market share. The platform serves over two million merchants across 175 countries with an integrated commerce operating system. |
Retail Merchants Platform Digital Commerce SMB | |
GamingTencent's gaming business showed signs of recovery with 3% growth in domestic gaming gross receipts. The company has navigated regulatory changes by investing in high-quality content and IP that fits within the regulatory framework. |
Video Games Entertainment Mobile Gaming Content China | |
PaymentsAdyen reported 46% volume growth as it ramped relationships with large clients including Block's Cash App. The company now processes over €1 billion annually for 19 platforms, demonstrating the scale of its unified payment offering. |
Fintech Merchant Acquiring Digital Payments Processing Financial Services |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 9, 2026 | Fund Letters | Aziz V. Hamzaogullari | GOOG | Alphabet Inc. | Communication Services | Internet Services & Infrastructure | Bull | NASDAQ | advertising, Artificial Intelligence, CapEx, cloud, Free Cash Flow, Search | Login |
| Feb 9, 2026 | Fund Letters | Aziz V. Hamzaogullari | SHOP | Shopify Inc. | Information Technology | Internet Services & Infrastructure | Bull | New York Stock Exchange | e-commerce, Free Cash Flow, network effects, Omnichannel, Payments, platform | Login |
| Feb 9, 2026 | Fund Letters | Aziz V. Hamzaogullari | 6954 JP | FANUC Corporation | Industrials | Industrial Machinery | Bull | New York Stock Exchange | Artificial Intelligence, Automation, manufacturing, Margins, robotics, secular growth | Login |
| Feb 9, 2026 | Fund Letters | Aziz V. Hamzaogullari | ORCL | Oracle Corporation | Information Technology | Enterprise Software | Bull | New York Stock Exchange | Artificial Intelligence, backlog, CapEx, Cloud computing, Enterprise software, Subscriptions | Login |
| Feb 9, 2026 | Fund Letters | Aziz V. Hamzaogullari | NFLX | Netflix, Inc. | Communication Services | Streaming Services | Bull | NASDAQ | advertising, Content, Free Cash Flow, scale, Streaming, Subscriptions | Login |
| Feb 9, 2026 | Fund Letters | Aziz V. Hamzaogullari | MELI | MercadoLibre, Inc. | Information Technology | E-commerce Platforms | Bull | NASDAQ | e-commerce, Fintech, Latin America, Logistics, network effects, Payments | Login |
| Nov 8, 2025 | Fund Letters | Aziz V. Hamzaogullari | LFCR | Lifecore Biomedical, Inc. | Health Care | Drug Manufacturers - Specialty & Generic | Bull | NASDAQ | Bioprocessing, CDMO, Contractmanufacturing, GLP-1, Injectables, pharmaceuticals, Reshoring, tariffs | Login |
| Jul 27, 2025 | Fund Letters | Aziz V. Hamzaogullari | NFLX | Netflix, Inc. | Communication Services | Movies & Entertainment | Bull | NASDAQ | cashflow, Content, Margins, Streaming, Subscriptions | Login |
| Jul 27, 2025 | Fund Letters | Aziz V. Hamzaogullari | MELI | MercadoLibre, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | ecommerce, Fintech, growth, Logistics, Margins | Login |
| Jul 27, 2025 | Fund Letters | Aziz V. Hamzaogullari | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | New York Stock Exchange | cashflow, cloud, Margins, Software, Subscription | Login |
| Jul 27, 2025 | Fund Letters | Aziz V. Hamzaogullari | TCOM | Trip.com Group Ltd. | Consumer Discretionary | Hotels, Resorts & Cruise Lines | Bull | NASDAQ | Demand, Margins, recovery, Tourism, Travel | Login |
| Jul 27, 2025 | Fund Letters | Aziz V. Hamzaogullari | YUMC | Yum China Holdings, Inc. | Consumer Discretionary | Restaurants | Bull | New York Stock Exchange | consumer, growth, Loyalty, Margins, Restaurants | Login |
| Jul 27, 2025 | Fund Letters | Aziz V. Hamzaogullari | VRTX | Vertex Pharmaceuticals Incorporated | Health Care | Biotechnology | Bull | NASDAQ | Biotech, cashflow, Genetics, innovation, pipeline | Login |
| TICKER | COMMENTARY |
|---|---|
| 6954.T | Fanuc reported September quarter results that beat consensus estimates, raising full-year operating profit guidance by 10% on demand recovery and improved utilization rates. Robot orders were particularly strong, up 38% y/y, driven by reshoring-related automation demand in North America, European automation investments, and new energy vehicle spending in China. Furthermore, at an international robot show in December, Fanuc showcased significant advancements in AI-enabled robotics, with commercialization that may arrive in the coming years. |
| 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. |
| BA | Some of the biggest winners over the past year are also among our biggest positions currently, including names like Boeing, GE Aerospace, and Cameco. |
| BABA | Alibaba was a detractor during the quarter after the company reported mixed fiscal Q2 results. While cloud revenue growth accelerated and margins remained stable, the core commerce business struggled with slowing growth and significant profit pressure, particularly in the quick commerce segment where heavy investment and intense competition led to a sharp decline in profitability. |
| 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. |
| MELI | E-commerce Volatility: turbulence in our e-commerce portfolio companies, Sea Ltd (Southeast Asia) and MercadoLibre (Latin America), amidst aggressive price wars. |
| 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. |
| NFLX | NFLX was the portfolio's largest detractor in 4Q25 following investor concerns around near-term subscriber growth and rising content spending. While revenue grew approximately 10% year-over-year, management guided to slower net subscriber additions in North America and Europe after recent price increases, and margins were pressured by elevated investment in live sports and international content. |
| NKE | Notable positive contributions from the Fund's short book in December include National Vision Holdings, Nike, and Starbucks. |
| NVO | added a new holding in Novo Nordisk, which had seen its share price decline by two thirds since mid-2024 |
| 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. |
| QCOM | I remember like yesterday when Qualcomm was the top performing stock in 1999 rising a spectacular 2,619%; it then dropped over 85% by 2002. |
| RACE | Our largest common stock holding is Ferrari. Over the last three years we have purchased 543,800 shares. At year-end, our investment in Ferrari was valued at $202.3 million. When we started purchasing shares in 2022, we were thinking about what the company would look like in two decades. Ferrari's vehicles will, of course, continue to change over the coming years, but we think the reasons people will choose the brand in the 2040s will be nearly the same as they are today. We believe Ferrari is one such company that has sustained its competitive edge. |
| SHOP.TO | Non dividend paying technology names Shopify and Celestica had also meaningful contribution to the index returns for the year, detracting our relative outcome. |
| TSLA | Under the previous system, companies that produced only electric vehicles—most notably Tesla—generated large quantities of credits that could then be sold to manufacturers falling short of their EV production targets, allowing them to avoid regulatory penalties. |
| UAA | We sold our position in Under Armour. |
| UL | Unilever is a global consumer goods company that develops and markets everyday food and personal care brands for billions of consumers worldwide. Anchored by iconic brands such as Dove, Knorr, Hellmann's and Vaseline, Unilever's refreshed management team is driving improved execution and strategic discipline to deliver more consistent growth, with a focus on higher-margin categories. Specifically, we appreciate their undertaking of various self-help initiatives, including cost-savings programs and brand divestments, which we believe will help unlock sustained value in the future. Despite Unilever's strong outlook, it trades at a discount to its peer group as prior undermanagement has resulted in 1% volume growth for the past decade. This provided us the opportunity to invest in a strong company with leading brands and an improved management team that is poised to increase per-share value. |
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