Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 0.094 | 0.002 | 0.128 |
| 2025 |
|---|
| 12.8% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 0.094 | 0.002 | 0.128 |
| 2025 |
|---|
| 12.8% |
Mar Vista's U.S. Quality strategy returned 0.20% net in Q4 2025, underperforming broader indices as market leadership remained concentrated in mega-cap and AI-related stocks. The portfolio benefited from strong performance in Alphabet, Johnson & Johnson, and Danaher, while Oracle, Microsoft, and Linde detracted. Key portfolio changes included initiating positions in Taiwan Semiconductor and Netflix while exiting Equifax and Roper Technologies. The manager views AI as transitioning from proof-of-concept to demonstrable ROI, with early monetization visible in advertising, cloud computing, and semiconductors. Looking ahead to 2026, the path for markets depends on balancing supportive fundamentals like Fed easing and resilient earnings against risks from narrow leadership, elevated valuations, and policy uncertainty. The strategy emphasizes companies with competitive advantages and intrinsic value growth potential while maintaining valuation discipline. The manager expects fundamentals to drive returns more than multiple expansion, favoring businesses that can control their destiny through superior economics and consistent cash flow generation.
Mar Vista's U.S. Quality strategy focuses on high-quality businesses with enduring competitive advantages, strong balance sheets, and long runways for intrinsic value compounding, while capturing AI's powerful optionality through diversified exposure across the AI value chain.
The path for markets in 2026 rests on a delicate balance between supportive fundamentals and rising economic risks. The Fed's easing cycle and resilient corporate earnings are still constructive, but the market's narrow leadership and elevated valuations leave equities vulnerable to sentiment reversals. The transition from AI infrastructure build-out to enterprise monetization will accelerate, with fundamentals taking center stage as valuation expansion has already played a significant role.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 13 2026 | 2025 Q4 | AAPL, AMZN, APH, AVGO, CRM, DHR, EFX, GOOG, JNJ, LIN, META, MSFT, NFLX, NVDA, ORCL, ROP, SAP, TSM, V | AI, Cloud, growth, large cap, Quality, semiconductors, Streaming, technology | - | The structural shift driven by Artificial Intelligence is transitioning from proof-of-concept to demonstrable return on investment. Early monetization is visible in advertising, cloud computing, and semiconductors. Companies deploying AI infrastructure are seeing tangible improvements in ROIC through more efficient ad targeting and premium AI cloud services. Cloud computing continues to be a key beneficiary of AI infrastructure deployment. Google Cloud emerged as a standout performer with 34% revenue growth and $155 billion backlog. Microsoft's Azure platform remains capacity-constrained with accelerating growth and increasing adoption of Copilot offerings. Taiwan Semiconductor represents the dominant manufacturer for leading fabless chip designers including NVIDIA, Apple, and Broadcom. The global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with leading-edge capabilities. Netflix has built a durable economic moat around its globally-scaled streaming business. With more than 300 million members, Netflix enjoys the lowest content cost per subscriber in the industry, enabling it to profitably outspend rivals and accelerate its competitive flywheel. |
| Oct 7 2025 | 2025 Q3 | AAPL, ADBE, APH, CRM, INTU, ORCL, SAP | Artificial Intelligence, diversification, Large Cap Growth, Market Concentration, valuation |
AAPL ORCL APH INTU SAP |
The commentary reinforces a quality-first philosophy focused on businesses with resilient earnings and strong free cash flow generation. Short-term macro noise is considered less important than long-term business economics. Valuation discipline is applied within a quality framework. |
| Jun 30 2025 | 2025 Q2 | AAPL, AVGO, JNJ, MSFT, ORCL | free cash flow, Governance, long-term, Quality, volatility |
MSFT AVGO ORCL AAPL |
The commentary highlights quality as the dominant driver of long-term returns, particularly in an environment of elevated valuation dispersion. Management stresses consistent free cash flow generation, conservative capital allocation, and strong governance as key defenses against macro uncertainty. Volatility is framed as an opportunity to accumulate superior businesses rather than a signal to rotate styles. |
| Mar 31 2025 | 2025 Q1 | AVGO, BRK/A, CRM, JNJ, MSFT, NVDA, PEP, V | - | - | |
| Feb 24 2025 | 2024 Q4 | AMT, AMZN, AVGO, CRM, DIS, GXO, MCHP | - | - | |
| Sep 30 2024 | 2024 Q3 | AAPL, AME, AMT, FTV, GOOG, MCHP, MSFT, NKE, SYK, TDG, UL | - | - | |
| Jun 30 2024 | 2024 Q2 | AAPL, AVGO, CMR, DIS, GOOG, META, NKE, SBUX | - | - | |
| Apr 15 2024 | 2024 Q1 | ADBE, AMZN, DIS, EFX, GXO, NKE, TDG | - | - | |
| Dec 31 2023 | 2023 Q4 | ADI, AMT, APD, FTV, MKL, MSFT, TDG, VLTO | - | - | |
| Sep 30 2023 | 2023 Q3 | AAPL, AMT, DHR, GOOG, INTU, MSFT, MTD, ORCL | - | - | |
| Jun 30 2023 | 2023 Q2 | - | - | - | |
| Apr 18 2023 | 2023 Q1 | - | - | - | |
| Jan 25 2023 | 2022 Q4 | ADBE, BRK/B, GXO MM | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
CloudAmazon's positioning to benefit from both infrastructure and application layers of AI is highlighted. The company's logistical prowess represents one of the foremost moats in business and will be enhanced with AI through better orchestration of logistics assets and buildout of more sophisticated robotics. |
Infrastructure Logistics Automation Efficiency Coordination | |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
StreamingNetflix represents the fund's exposure to global streaming entertainment, despite near-term headwinds from subscriber growth concerns and content spending. The fund continues to view Netflix as the dominant global streaming platform with durable competitive advantages through its content library, technology infrastructure, and growing advertising business. |
Content Global Advertising Platform Entertainment | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
ConcentrationFive companies now represent roughly 30% of the S&P 500's market cap. The top 10 exceed 40%—the highest concentration in 50 years. Nearly $340 billion flowed into U.S. deals, yet it was packed into the fewest deals of the decade, with nearly half the capital concentrated in a few dozen deals over $500 million. |
Market Capital Risk Deals Venture | |
DiversificationThe Fund remains purposefully diversified despite market leadership being narrow and focused on AI. This discipline reflects commitment to effective risk management and appropriate diversification, which weighed on relative performance but positions the Fund well for various market scenarios. |
Risk Management Portfolio Construction Concentration | |
ValuationAI-related companies continue to command premium valuations while other sectors remain reasonably priced. This valuation divide continues to guide investment activity, with the fund remaining wary of companies trading at exceedingly high valuations that imply exceptional multi-year earnings growth. |
Premium Divide Discipline Stretched Reasonable | |
| 2025 Q2 |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 7, 2025 | Fund Letters | Silas Myers | INTU | Intuit Inc. | Information Technology | Application Software | Bull | NASDAQ | AI, Automation, Data, Ecosystem, Fintech, growth, SaaS | Login |
| Oct 7, 2025 | Fund Letters | Silas Myers | SAP | SAP SE | Information Technology | Application Software | Bull | - | backlog, cloud, EPS growth, ERP, migration, recurring revenue, SaaS | Login |
| Jun 30, 2025 | Fund Letters | Silas Myers | MSFT | Microsoft Corp. | Information Technology | Systems Software | Bull | NASDAQ | AI, cloud, infrastructure, productivity, Software | Login |
| Jun 30, 2025 | Fund Letters | Silas Myers | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI, ASICs, datacenter, hyperscalers, semiconductors | Login |
| Jun 30, 2025 | Fund Letters | Silas Myers | ORCL | Oracle Corp. | Information Technology | Application Software | Bull | NASDAQ | AI, cloud, enterprise, infrastructure, SaaS | Login |
| Jun 30, 2025 | Fund Letters | Silas Myers | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | AI, Ecosystem, Hardware, retail, services | Login |
| Oct 7, 2025 | Fund Letters | Silas Myers | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | AI, cash flow, Ecosystem, Edge devices, Margins, recurring revenue, services | Login |
| Oct 7, 2025 | Fund Letters | Silas Myers | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | NYSE | AI, cloud, EPS growth, hyperscale, infrastructure, Oci, Rpo | Login |
| Oct 7, 2025 | Fund Letters | Silas Myers | APH | Amphenol Corporation | Information Technology | Electronic Components | Bull | NASDAQ | AI, Connectivity, diversification, electronics, growth, Margins, ROIC | Login |
| TICKER | COMMENTARY |
|---|---|
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| 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. |
| APH | We trimmed Amphenol Corp. |
| AVGO | The primary contributors to its performance were our exposures to Broadcom |
| CRM | By looking at their Rnancials, FactSet, PayPal, Adobe, and Salesforce seem to be doing Rne. The market, however, is reading subdued revenue growth as a sign of increased competition on their core oSerings. These companies' outlooks look more di'cult than their past. |
| DHR | After lagging through the first three quarters of 2025, Danaher's stock rebounded during Q4 as bioprocessing, life science, and diagnostics demand continued to recover from a cyclical trough. On the 3Q25 call, management established conservative 2026 growth expectations. Revenue is expected to continue to lag long-term trends at 3-6% but improve throughout the year. |
| EFX | We divested our position in Equifax during the quarter following a strategic shift by FICO, a leading provider of credit scores to the mortgage industry. FICO announced plans to sell its credit scores directly to mortgage underwriters, bypassing the credit bureaus and thereby pressuring the economics that EFX has historically captured in the credit-scoring value chain. |
| GOOG | From the moment OpenAI hit the scene with ChatGPT 3.5 in the Fall of 2022, Google was a perceived loser and thousands of pontificators warned about the end of search. Fast forward three years and this was Google Search's fastest quarter of revenue growth since Q1 2022, when the reopening and pandemic were still considerable drivers of results. In parallel with the Search re-acceleration, Google has also emerged as a leader in AI itself. This combination has been potent for Google's stock and could not have opened on Search alone, given the terminal value fears. |
| JNJ | During the quarter, we switched out of a long-held position in Johnson & Johnson into a new holding in Merck. |
| LIN | While the company remains a high-quality global leader in industrial gases, shares of Linde plc declined nearly 10% in Q4 due to a persistent industrial gas volume recession, softer guidance and global macroeconomic concerns. From a macro standpoint, the company continues to struggle with negative base volumes in its core industrial segments. |
| 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. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| 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. |
| ROP | After a decade-long partnership with Roper Technologies, we have made a strategic decision to exit our position. Our decision to sell was based on three factors. Firstly, Roper's organic growth rates have begun to lag its pure-play software peers. Secondly, we believe many of these businesses are approaching market saturation, which limits their future growth prospects. Lastly, the valuation no longer provides an attractive margin of safety given the first two challenges. |
| 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. |
| 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. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||