| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.2% | 0.1% | 3% |
| 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| 3.0% | 29.6% | 22.1% | -15.7% | 19.3% |
Magellan Global Fund maintains a constructive outlook for equity markets, positioning the portfolio to benefit from a three-pronged US economic tailwind of fiscal policy, monetary policy, and deregulation. The fund expects strong 13-14% earnings growth in 2026, well above historical averages, driven by the AI investment boom and significant fiscal stimulus including tax cuts potentially worth $800 per US taxpayer. The portfolio is positioned at maximum permitted risk levels, 20% below market risk, with exposure to highest-quality AI value chain players, financial stocks benefiting from market strength, and consumer franchises. Key contributors included Alphabet, Amazon, and TSMC, benefiting from AI momentum and cloud growth. However, the managers acknowledge risks including potential AI investment slowdown due to resource constraints, systemic economic dependence on AI growth, and geopolitical uncertainties. The fund maintains strategic defensive allocations to high-quality companies as a hedge against market drawdowns while pursuing the dual objectives of attractive risk-adjusted returns and capital preservation.
Investing in outstanding companies at attractive prices while exercising deep understanding of macroeconomic environment to manage investment risk, focusing on high-quality securities with strong risk-adjusted returns over medium to long term.
Constructive outlook for equity markets with economic growth remaining resilient driving strong corporate earnings growth led by the US. Portfolio positioned to benefit from AI investment boom, fiscal stimulus, and monetary easing while maintaining defensive allocations to high-quality companies.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | AMZN, ASML, CMG, GOOGL, MA, META, MSFT, NESN.SW, NFLX, NVO, PG, RMS.PA, SAP, TSM, UNH, V, YUM | AI, Cloud, global, growth, Luxury, Quality, semiconductors, technology |
TSM GOOG MSFT |
Magellan Global Fund positions for strong US earnings growth driven by AI investment boom and fiscal stimulus, expecting 13-14% earnings growth in 2026. Portfolio maximizes risk exposure to quality AI, financial, and consumer names while maintaining defensive allocations. Key risks include AI investment constraints and systemic economic dependence on AI momentum. |
| Oct 16 2025 | 2025 Q3 | AMZN, ASML, CME, CMG, ES, GOOGL, INTU, MA, META, MSFT, NESN.SW, NFLX, NVO, SAP, TSM, UNH, V | AI, Defensive, global, growth, Quality, semiconductors, technology | CME | Magellan Global Fund underperformed in Q3 as defensive holdings lagged AI-driven rally. Alphabet led gains from antitrust clarity while Chipotle weighed on returns from consumer weakness. Manager maintains constructive outlook supported by fiscal and monetary tailwinds but manages elevated valuation risks through balanced positioning between growth and defensive quality companies. |
| Jun 30 2025 | 2025 Q2 | AAPL, AMZN, ASML, GOOGL, MC.PA, META, MSFT, OR.PA | Big tech, China, Decoupling, Europe, regulation, technology, US | AAPL | Magellan delivered 17% returns while taking lower risk, navigating three key debates: European re-rating versus US fundamentals, West-China decoupling risks leading to Apple exit, and persistent Big Tech regulatory challenges. The fund maintains conviction in high-quality US technology leaders while carefully managing geopolitical exposure through selective positioning in companies with durable competitive advantages. |
| Dec 31 2024 | 2024 Q4 | AMZN, EL, GME, GOOGL, META, MSFT, NKE, SBUX | AI, China, consumer, Energy Transition, Global Equities, Quality, technology | - | Magellan's global equity strategy capitalizes on structural changes from AI innovation and energy transition while maintaining disciplined focus on quality businesses. Portfolio companies including Microsoft, Amazon, Alphabet and Meta are driving technological transformation through massive infrastructure investments. The managers avoid Chinese consumer exposure while positioning for long-term wealth creation through concentrated, conviction-based investing in companies with sustainable competitive advantages. |
| Dec 31 2023 | 2023 Q4 | AAPL, AMZN, ASML, BN, CCI, CMG, DEO, GOOGL, HCA, ICE, INTU, LOW, MSFT, NFLX, SAP, TT, UNH, USB, V, YUM | AI, global, growth, inflation, Quality, Recession, technology |
AAPL|MSFT|NFLX|NVDA|UNH AMZN |
Magellan Global maintains focus on quality companies amid recession risks and cooling inflation. Portfolio positioned for earnings resilience while capturing AI acceleration and energy transition themes. Technology holdings benefited from Generative AI optimism. Defensive positions trimmed as inflation benefits fade. Banking exposure eliminated due to earnings challenges. Base case expects mild US recession with continued macro uncertainty. |
| Dec 31 2022 | 2022 Q4 | ASML, MA, V | - | - | |
| Dec 31 2021 | 2021 Q4 | BABA, MSFT, NFLX | - | - | |
| Dec 31 2020 | 2020 Q4 | MA, MC FP, MSFT | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI investment boom continues driving economic growth with Harvard economist estimating AI responsible for 92% of US GDP growth in first half of 2025. Portfolio exposed to highest-quality AI value chain players including Alphabet, Amazon, and TSMC. Risks emerging around sustainability of AI spend and potential constraints from power, labor, and materials. |
Artificial Intelligence Technology Infrastructure Investment |
CloudAmazon's AWS cloud business showing acceleration in growth and margin expansion with notable deals to provide computing to OpenAI. All incumbent cloud providers viewed as winners from increased AI application adoption despite shifting views on positioning between Microsoft, Google, and others. |
Cloud Computing AWS Infrastructure Growth | |
SemiconductorsTSMC performed strongly closing at record highs on continued strength in semiconductor demand including AI applications. CEO described demand as 'insane' with company beginning mass production of 2nm chips using new Gate All Around transistor architecture during the quarter. |
Semiconductors Manufacturing Technology Demand | |
LuxuryHermès highlighted as compelling business with brand equity built on function, heritage and longevity rather than seasonal fashion. Company has solved luxury's central dilemma of growing while preserving rarity through disciplined capacity additions and pricing rather than volume acceleration. |
Luxury Goods Brand Pricing Power Scarcity | |
| 2025 Q3 |
AIAI is viewed as a genuinely revolutionary technology for markets, economies and society. The manager notes AI-related stocks have driven majority of earnings growth and returns since ChatGPT launch in November 2022. However, sentiment towards AI can be volatile and subject to rapid reversals, as witnessed during the 'DeepSeek moment' earlier this year. |
Technology Growth Innovation Disruption Semiconductors |
SemiconductorsTSMC and ASML benefited from positive sentiment across the semiconductor sector after OpenAI announced partnerships with key industry players like Oracle, Nvidia and Broadcom. TSMC was helped by robust second-quarter results and upgraded full-year 2025 forecast driven by persistent strong demand for leading-edge manufacturing capacity that continues to outstrip available supply. |
Technology Manufacturing Supply Demand Growth | |
DefensiveThe manager maintains strategic allocations to defensive, high-quality companies as risk management. Many defensive stocks have underperformed despite robust fundamentals, largely because they have been used as a source of funds for investors rotating into AI-related themes. The prospective returns from these defensive holdings have become increasingly attractive. |
Quality Risk Management Value Undervalued Opportunity | |
| 2025 Q2 |
Trade PolicyThe decoupling of the West and China represents a powerful trend involving economic, financial, and technological separation. The risk is that decoupling occurs faster than companies can adjust their supply chains, with risks tilted towards faster-than-expected decoupling. |
Decoupling Supply Chain China Tariffs Geopolitical |
Industrial PolicyGovernment regulatory decisions are critical for companies with strong market positions, as their greatest threat comes from regulators rather than competitors. The US regulatory outlook for Big Tech remains challenging despite Trump's return, with ongoing investigations into market positions. |
Regulation Big Tech Antitrust Government Market Position | |
| 2024 Q4 |
AIArtificial Intelligence and generative AI are driving improving fundamentals and technological innovation across portfolio companies. The scale of spending by major companies like Microsoft, Amazon, Alphabet and Meta is extraordinary and driving a rebound in activity across many industries. The investment to drive this new era is real with enormous benefits to be realized. |
Technology Innovation Data Centers Cloud |
Energy TransitionSignificant opportunity exists as the world endeavors to meet net zero emissions targets. China has become cost-competitive in key transition industries including wind, solar, electric batteries and electric vehicles. Billions of dollars of capital are flowing to expand semiconductor industry and build data centers in support of electrification. |
Solar Wind Electric Vehicles Decarbonization | |
ChinaChina is evolving economically and becoming more cost-competitive in net zero transition industries. Chinese consumers exhibit low confidence due to housing market weakness, making domestic consumption relatively unattractive. Global investors are shifting focus away from China as the political and economic backdrop has become significantly more difficult. |
Exports Manufacturing Geopolitical Consumer | |
| 2023 Q4 |
AIGenerative AI represents a period of extraordinary progress with lasting impacts. The managers are focused on understanding how AI will create new addressable markets and earning streams while being thoughtful about disruption risks. They see clear commercial applications for some portfolio holdings as enablers of the new AI era. |
Generative AI Innovation Productivity Commercial Applications Market Disruption |
Energy TransitionThe climate crisis is driving ongoing strong capex intentions in companies leaning into energy solutions, supporting manufacturing and commodities. This includes productivity enhancements and corporate capex refocus to ensure competitive positions are protected or enhanced. |
Climate Crisis Energy Solutions Capex Manufacturing Net-zero | |
InflationCentral banks have made significant progress fighting inflation through rate rises. The inflationary pulse was set off by pandemic response creating supply-side and demand-side shocks. Inflation is cooling with consumer and business expectations remaining anchored, though challenges remain outside the US. |
Central Banks Rate Rises Supply Shock Demand Shock Expectations | |
CloudPoor sentiment in cloud spending patterns in late 2022 reversed in first half 2023 driven by Microsoft's generative AI opportunity. AI will be additive to workloads of hyperscale cloud players, with significant enterprise cost savings and productivity emerging from newer AI-first solutions. |
Cloud Spending Hyperscale Enterprise Solutions Cost Savings Workloads |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 18, 2026 | Fund Letters | Arvid Streimann | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Monetisation, Search | Login |
| Jan 18, 2026 | Fund Letters | Arvid Streimann | MSFT | Microsoft Corporation | Information Technology | Application Software | Bear | NASDAQ | AI, cloud, enterprise, Platforms, Software | Login |
| Jan 18, 2026 | Fund Letters | Arvid Streimann | TSM | Taiwan Semiconductor Manufacturing Company Limited | Information Technology | Semiconductors | Bull | New York Stock Exchange | AI, Foundry, scale, semiconductors, technology | Login |
| Oct 16, 2025 | Fund Letters | Arvid Streimann | CME | CME Group Inc. | Financials | Financial Exchanges & Data | Bull | NASDAQ | compounding, Derivatives, Exchanges, growth, Liquidity, Margins, Monopoly, Volatility | Login |
| Jul 1, 2025 | Fund Letters | Magellan Global Fund | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bear | NASDAQ | China Revenue Dependence, Exit Position, geopolitical risk, iPhone Production, Manufacturing Exposure, Supply Chain Risk, technology hardware, US China decoupling | Login |
| Jun 30, 2023 | Fund Letters | Magellan Global Fund | AAPL|MSFT|NFLX|NVDA|UNH | Netflix Inc | Communication Services | Entertainment | Bull | NASDAQ | Ad-supported, Content, entertainment, margin expansion, Platform Monetization, revenue diversification, Streaming, Subscription | Login |
| Jun 30, 2023 | Fund Letters | Magellan Global Fund | AMZN | Amazon.com Inc | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | AWS, Cloud computing, e-commerce, growth, innovation, Logistics, Long Term Investing, marketplace, platform, technology | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| ASML | ASML, TSMC, and Arista Networks are key players in the AI build out supply chain. |
| CMG | The top-five detractors from returns were Fiserv, Chipotle, Constellation Software, Roper, and Floor & Décor. In the quarter, we exited Fiserv, Chipotle, and monday.com. |
| 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. |
| MA | The enduring appeal of card payments is their universality. Consumers trust that Visa and Mastercard will be accepted globally. After more than 20 years of litigation, Visa and Mastercard agreed to yet another settlement that gives merchants greater flexibility |
| 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. |
| NESN.SW | We see now as an opportune time to own a company that possesses world-leading brands in consumer categories we believe have a favourable growth outlook in the long run. Nestlé's comprehensive pricing architecture through umbrella brands Nescafé and Nespresso means the portfolio should be well-positioned to capture spending shifts up and down the price ladder. In pet foods, Nestlé also possesses category leaders in its Purina line. We see both coffee and pet care as attractive categories that are more experiential and less commoditised relative to other staples. Over recent quarters, Nestlé was able to deliver positive volume growth in coffee despite pushing through high-single-digit percentage price increases. Scale matters as Nestlé is the world's largest provider of packaged coffee and among the top pet food producers globally. |
| 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. |
| NVO | added a new holding in Novo Nordisk, which had seen its share price decline by two thirds since mid-2024 |
| PG | The multiples of technology stocks should be quite a bit lower than the multiples of stocks like Coke and Gillette |
| RMS.PA | Hermès was founded in Paris in 1837 as a maker of harnesses and saddles for Europe's horse-drawn elite. From the outset, the company was defined by functional excellence and craftsmanship rather than fashion. Today, the group is one of the most profitable companies in global luxury, with activities spanning leather goods, ready-to-wear, silk, jewellery, watches and homewares. Despite operating more than 300 stores globally and employing over 20,000 people, Hermès continues to behave less like a conglomerate and more like a craft maison, prioritising long-term brand equity over near-term growth. This mindset underpins why we find Hermès such a compelling business. Its brand equity is built not on seasonal fashion or loud marketing but on function, heritage and longevity. Hermès has delivered exceptional consistency in returns on capital and earnings through cycles, underpinned by disciplined supply, minimal discounting and limited fashion risk. This reduces downside volatility and supports higher through-cycle multiples. The benefits of the Hermès model have been particularly evident through the recent challenging period for the luxury sector. Slowing global demand, softer Chinese consumption and inventory pressure have led to revenue declines and margin contraction for many peers. Hermès has stood apart. Growth has moderated but remained positive, margins have proven resilient, and inventory discipline has been maintained. |
| SAP | We trimmed SAP SE. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| UNH | We also added back a full position in UnitedHealth |
| V | There were companies there such as Visa, which we own, as well as many we do not, and which would not likely be appropriate for this mandate. |
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