| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.42% | 0.2% | 12.8% |
| 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 | - | Mar Vista's Quality strategy underperformed in Q4 as mega-cap AI stocks dominated. Portfolio changes included adding Taiwan Semiconductor and Netflix while exiting Equifax and Roper. The manager sees AI transitioning to demonstrable ROI with early monetization in cloud, advertising, and semiconductors. 2026 outlook balances Fed easing and earnings growth against narrow leadership risks and elevated valuations. |
| Oct 7 2025 | 2025 Q3 | AAPL, ADBE, AMZN, APH, AVGO, CRM, EFX, GOOGL, INTU, META, MSFT, NVDA, ORCL, SAP, TSLA | AI, Cloud, growth, large cap, Quality, semiconductors, software, technology |
AAPL ORCL APH INTU SAP |
Mar Vista's quality strategy lagged in Q3 as AI euphoria drove markets higher, with Magnificent Seven reaching record 37% S&P 500 weight. Oracle delivered breakthrough AI infrastructure results while traditional SaaS names faced autonomous AI disruption concerns. The firm increased AI beneficiaries while exiting Adobe, emphasizing diversification amid stretched valuations and speculative excess. |
| Jun 30 2025 | 2025 Q2 | AAPL, AVGO, BRK-A, GE, GOOGL, HEI, JNJ, MSFT, ORCL, SAP, V | aerospace, AI, Cloud, large cap, Quality, semiconductors, technology, Trade Policy |
MSFT AVGO ORCL AAPL MSFT AVGO ORCL AAPL JNJ BRK-A GE |
Mar Vista's U.S. Quality strategy outperformed in Q2 2025 with 12.40% net returns, driven by AI infrastructure leaders Microsoft, Broadcom, and Oracle. The firm initiated GE Aerospace while reducing other positions. Despite record market highs, persistent trade policy uncertainty and rising tariffs create headwinds. The strategy maintains disciplined, valuation-aware positioning for long-term value creation. |
| Mar 31 2025 | 2025 Q1 | AAPL, APH, AVGO, BRK-A, CRM, GOOGL, JNJ, META, MSFT, NVDA, ORCL, PEP, TSLA, V | AI, inflation, large cap, Quality, semiconductors, Stagflation, technology, Trade Policy |
BRK-B JNJ V AVGO CRM MSFT NVDA PEP |
Mar Vista's quality-focused strategy outperformed during Q1's broad market selloff driven by trade policy uncertainty and stagflation fears. Defensive holdings like Berkshire Hathaway and Johnson & Johnson provided resilience while technology positions faced pressure. The team initiated NVIDIA following its decline and exited PepsiCo due to structural headwinds, maintaining valuation discipline amid weakening growth and rising inflation expectations. |
| Feb 24 2025 | 2024 Q4 | AAPL, AME, AMT, AMZN, AVGO, CRM, DHR, DIS, EFX, GOOGL, GXO, INTU, MCHP, META, MSFT, MTD, NVDA, TSLA | AI, Cloud, growth, large cap, Quality, semiconductors, technology, Valuations |
AVGO CRM AMZN AMT MTD DHR DIS GXO MCHP |
Mar Vista's quality-focused strategy underperformed in Q4 as mega-cap tech concentration continued driving market returns. The manager maintains conviction in AI transformation and deregulation catalysts for 2025 earnings growth while acknowledging elevated valuation risks. Portfolio changes included exits from Disney and Microchip Technology, with increased exposure to Meta Platforms and other quality growth names positioned for technological advancement. |
| Sep 30 2024 | 2024 Q3 | AAPL, AME, AMT, AMZN, BA, FTV, GOOGL, GSK, JNJ, MCHP, META, MSFT, NKE, NVDA, SYK, TDG, TSLA, UL, ZBH | AI, growth, healthcare, industrials, large cap, Rate Cuts, technology | - | Mar Vista delivered strong Q3 performance through selective stock picking, adding quality names like Stryker and AMETEK while exiting underperformers. The portfolio benefits from rate cuts supporting REITs and travel recovery driving aerospace, while navigating AI spending concerns in technology. Historical patterns suggest continued market strength with broadening sector participation beyond technology. |
| Jun 30 2024 | 2024 Q2 | AAPL, ADI, AMZN, APH, AVGO, CRM, DIS, EFX, GOOGL, MCHP, MCO, META, MSFT, NKE, NVDA, PEP, SBUX | AI, Cloud, consumer discretionary, growth, large cap, semiconductors, technology |
AAPL GOOGL APH NKE DIS CRM AVGO META |
Mar Vista's growth strategy underperformed in Q2 as AI concentration drove market gains. The fund added AI-focused positions in Broadcom and Meta while trimming others. Despite market concentration risks and elevated AI valuations, the manager maintains a positive outlook supported by healthy enterprise spending and strong earnings, focusing on long-term value compounding. |
| Apr 15 2024 | 2024 Q1 | AAPL, ADBE, AMZN, DHR, DIS, EFX, GXO, HON, JNJ, MTD, NFLX, NKE, NVDA, SBUX, TDG | AI, E-Commerce, growth, large cap, Streaming, technology |
DIS TDG AMZN ADBE NKE GXO EFX |
Mar Vista's Strategic Growth strategy returned 6.68% in Q1 2024, lagging benchmarks during an AI-driven rally. Disney, TransDigm, and Amazon led gains while Adobe, Nike, and GXO detracted. The firm initiated Equifax, added to quality names, and liquidated Honeywell. Despite elevated valuations, management remains optimistic on moated companies benefiting from secular trends. |
| Dec 31 2023 | 2023 Q4 | ADI, AMT, AMZN, APD, CRM, DIS, FTNT, GOOGL, MCHP, MKL, MSFT, PEP, SBUX, TDG, VEEV | AI, Cloud, growth, large cap, Quality, semiconductors, technology, value |
AMT AAPL|MSFT|NFLX|NVDA|UNH 0TDG LN ADI |
Mar Vista's concentrated growth strategy underperformed in 2023's AI-driven rally dominated by Magnificent Seven stocks. The manager added semiconductor exposure via Analog Devices while exiting insurance positions. Despite economic uncertainty ahead, the portfolio of competitively advantaged franchises with strong balance sheets appears well-positioned for potential outperformance as market concentration normalizes. |
| Sep 30 2023 | 2023 Q3 | AAPL, ADBE, AMT, BRK-B, DHR, DIS, GOOGL, HEI, INTU, MCO, MKL, MSFT, MTD, NKE, ORCL, TDG | AI, Cloud, growth, large cap, rates, technology, value |
ACGL|APH|COO|CSGP|DKNG|GWRE|IDXX|IOT|IT|LPLA|MSCI|MTD|PCOR|ROP|TECH|VRSK AMT AAPL ADI|BDX|FI|FND|HAS|META|MSFT|MSI|ORCL|TMO AAPL|MSFT|NFLX|NVDA|UNH INTU GOOGL DHR |
Mar Vista's concentrated large-cap growth strategy declined 4.41% in Q3 as higher rates pressured technology holdings. The fund owns competitively advantaged businesses at discounted valuations, adding Danaher while trimming appreciated positions. Despite recession concerns from higher-for-longer rates, the manager maintains conviction in quality companies with durable moats and secular growth drivers. |
| Apr 18 2023 | 2023 Q1 | - | - | - | |
| Jan 25 2023 | 2022 Q4 | ADBE, BRK/B, GXO MM | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
DividendsThe Fund invests approximately 50% of its assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks, known as the Dogs of the Dow strategy. The strategy focuses on purchasing stocks with the highest annualized dividend yields relative to market value. |
High Yield DJIA Income Dogs of Dow |
Risk AppetiteThe Fund limits exposure to market risk and volatility by investing approximately 50% of its assets in U.S. Treasury securities with maturity of less than one year. This balanced approach aims to provide both capital appreciation and current income while managing downside risk. |
Treasury Volatility Balanced Risk Management | |
| 2025 Q3 |
AIThe ongoing AI boom powered U.S. equities in Q3 2025, with the Magnificent Seven now accounting for nearly 37% of S&P 500 market cap driven by AI enthusiasm. Oracle experienced its NVIDIA moment with multi-billion-dollar AI infrastructure contracts, while concerns emerged about autonomous AI agents potentially disrupting traditional SaaS providers like Intuit and Salesforce. |
Artificial Intelligence Machine Learning Generative AI AI Infrastructure AI Agents |
CloudOracle is emerging as a Tier-1 hyperscale cloud provider with its Oracle Cloud Infrastructure targeting $144 billion in revenue by 2030, driven by massive AI training and inference workloads. The company secured unprecedented multi-billion-dollar contracts positioning it as a peer to Microsoft Azure, Google Cloud, and AWS. |
Cloud Infrastructure Hyperscale IaaS Cloud Computing Data Centers | |
SemiconductorsNVIDIA's new Blackwell NVL platform is expected to ramp in the second half of 2025, with Amphenol benefiting from AI-related product design wins including contributions to this platform. The semiconductor sector continues to benefit from AI-driven demand for advanced computing infrastructure. |
AI Chips GPU Semiconductor Equipment Chip Design Computing Hardware | |
| 2025 Q2 |
AIAI-focused stocks rebounded strongly in Q2, with Microsoft benefiting from accelerating demand for AI-related Azure services and robust bookings. Oracle gained momentum with its OCI Gen 2 platform well-suited for generative AI workloads, securing large contracts including one expected to generate over $30 billion annually. The AI-driven rally regained momentum despite earlier concerns about returns on large-scale AI capex investments. |
Azure Generative AI Cloud Infrastructure Hyperscale |
CloudCloud infrastructure remained a key growth driver with Microsoft's Azure services showing strong momentum and Oracle's OCI Gen 2 platform gaining market share in the hyperscaler cloud market. The transition to cloud-based solutions continues to drive revenue growth, with Oracle modernizing its back-office applications for cloud deployment over the past decade. |
Azure OCI Hyperscale SaaS Infrastructure | |
SemiconductorsBroadcom rebounded strongly as concerns about AI capex returns proved overstated, with the company delivering solid results and guiding for accelerating AI semiconductor revenue growth. As the leading provider of custom AI ASICs, Broadcom continues diversifying its customer base beyond Alphabet with multiple hyperscaler customers in production and additional design wins expected to transition to volume production. |
ASICs AI Chips Hyperscale Custom Silicon GPUs | |
AerospaceGE Aerospace was initiated as a new position based on its dominant market share in commercial and military aircraft engines, powering over 60% of the global narrowbody fleet. The company benefits from strong aftermarket business with long-term maintenance contracts and is positioned for continued growth as global aviation is expected to outpace GDP growth by 2x, while competitors face durability challenges. |
Aircraft Engines Aftermarket Aviation Defense Turbofan | |
Trade PolicyTrade tensions and tariff concerns created significant market volatility throughout the period, with persistent policy uncertainty remaining a key headwind. Rising tariffs are already pressuring margins as businesses absorb higher costs, potentially increasing recession risks, while companies become more cautious in investment decisions with the reciprocal tariff pause expiring in Q3. |
Tariffs Trade Tensions Policy Uncertainty Margins Investment | |
| 2025 Q1 |
AIAI market remains in preliminary stages with fast-paced innovation. DeepSeek's efficient model sparked debate around capital efficiency, but hyperscalers increased 2025 capex guidance despite awareness of progress. Integration of reasoning capabilities into LLMs significantly increases computing intensity, with some estimates showing up to 100x more computing demand for inferencing models with reasoning. |
Artificial Intelligence Computing Infrastructure Hyperscalers LLMs |
Trade PolicyVolatile rollout of tariffs against major US trading partners led analysts to cut economic growth forecasts while raising inflation expectations. Prolonged uncertainty could hinder corporate decision-making, resulting in delays in capital expenditures, hiring, and major projects with substantial economic repercussions. Clear trade policy establishment would allow businesses to plan strategically. |
Tariffs Economic Growth Inflation Uncertainty Policy | |
SemiconductorsTechnology sector downturn was particularly sharp with NVIDIA losing nearly 20% in Q1 amid concerns AI investment boom may have been overhyped. NVIDIA maintains dominant position in custom AI ASIC market with disciplined capital allocation. Company offers attractive way to participate in generative AI buildout combining scale, technological leadership, and healthy growth outlook. |
NVIDIA ASICs Technology Valuation Computing | |
InflationRising inflation expectations for 2025 raise specter of stagflation or recession. Fears that Trump administration's aggressive trade policies could lead to stagflation in world's largest economy. Visa's toll taker status should allow business to thrive even in inflationary environments. |
Stagflation Economic Policy Pricing Power Recession Growth | |
| 2024 Q4 |
AIArtificial intelligence stands out as a particularly exciting prospect, drawing parallels to the revolutionary impact of automobiles in the 1920s. Industry experts believe artificial intelligence will meaningfully enhance worker productivity and generate efficiencies across various sectors, potentially justifying the current elevated market valuations. The manager sees AI as one of two key catalysts driving expected mid-teens S&P 500 earnings growth for 2025. |
Productivity Semiconductors Technology Innovation Growth |
SemiconductorsBroadcom reported strong fiscal year Q4 2024, exceeding expectations and reinforcing its leadership in custom AI accelerator solutions. The outlook for continued demand for Broadcom's custom AI accelerator products surprised many who expected a slowdown ahead of its new product. The announcement of a long-term service addressable market of $60-to-$90 billion further highlighted Broadcom's significant growth runway in the custom AI accelerator market. |
AI Accelerators Custom Growth Technology | |
CloudAmazon's AWS achieved record operating margins in the third quarter, with accelerated AWS growth being one of the key drivers of exceptional performance. The manager keeps their investment in Amazon due to several factors including AWS growth having further potential. Salesforce's results were driven by strength in subscription revenues and both the Sales and Service Clouds returned to double-digit growth. |
AWS Margins Growth Subscription Services | |
QualityThe investment strategy focuses on companies with competitive advantages and strong fundamental growth, particularly those positioned to capitalize on opportunities presented by artificial intelligence and technological advancements. The portfolio was renamed from Strategic Growth to U.S. Quality to better reflect the underlying investments and align with evolving marketplace terminology. |
Competitive Advantages Fundamentals Growth Technology | |
| 2024 Q3 |
AIThe market entered a zone of disillusionment regarding heavy AI spending by big tech companies, reminiscent of the internet boom in 2000. Apple's generative AI roadmap and iPhone 16 product cycle were viewed positively, with AI solutions integrated into iOS 18. Microsoft continues investing heavily in generative AI despite investor concerns about rising capital intensity. |
Generative AI AI Spending iPhone 16 iOS 18 Microsoft |
RatesThe Federal Reserve lowered interest rates following weaker inflation readings, supporting market performance. The market appears at the beginning of an easing cycle with rates not exceptionally high by historical standards. Lower rates particularly benefited American Tower as a levered REIT through lower cost of debt and higher value for long-duration cash flows. |
Fed Rate Cuts Easing Cycle Interest Rates REITs Inflation | |
TravelTransDigm benefited from a surge in global travel surpassing pre-pandemic levels. Airlines showed no significant change in aircraft order patterns despite overcapacity issues. Load factors remain high with take-offs and landings continuing to grow beyond pre-pandemic levels, supporting TransDigm's commercial aerospace aftermarket business. |
Global Travel Airlines Aircraft Orders Load Factors Aerospace | |
OrthopedicsStryker's investment thesis focuses on its durable economic moat in orthopedics with barriers remaining high and market shares sticky. The industry evolved into an oligopoly with Stryker, Johnson & Johnson, and Zimmer Biomet accounting for two-thirds of the market. Expanding adoption of the Mako Robot should widen competitive advantages. |
Medical Devices Mako Robot Market Share Oligopoly Barriers | |
| 2024 Q2 |
AIAI enthusiasm has driven approximately 60% of market gains, with Nvidia contributing 30% to the first-half advance. The manager believes in AI's long-term transformative effect but notes the market is pricing in immediacy while benefits will accrue gradually. AI advancements are already showing promising results in enhancing consumer engagement and improving advertiser performance. |
Artificial Intelligence Machine Learning Generative AI AI Infrastructure AI Accelerators |
SemiconductorsBroadcom is positioned as the second-largest producer of AI accelerator chips behind Nvidia and leads the market in custom AI ASIC chips. The company benefits from hyper scalers building out next-generation AI factories and custom silicon demand from companies like Alphabet and Meta. |
AI Chips Custom Silicon ASIC Foundries Chip Designers | |
CloudEnterprise spending remains healthy, supporting the outlook. Alphabet's core advertising business is rebounding and the company continues infrastructure investments while managing costs through restructuring efforts. |
Cloud Infrastructure Enterprise Software Infrastructure Investments Digital Advertising SaaS | |
| 2024 Q1 |
AIAI-related firms led the market surge with Nvidia's stock soaring over 82%, adding more than $1 trillion in market value. Adobe stands out as an early leader in generative AI, offering both standalone solutions like Firefly and integrated features within established products like Photoshop. |
Nvidia Generative AI Firefly Photoshop |
StreamingWalt Disney's streaming service is on track to become profitable by its fiscal fourth quarter, aligning with the original investment thesis that expected the direct-to-consumer business to move from a $2 billion loss to a $1 billion profit. Disney remains undervalued relative to Netflix. |
Disney Netflix Direct-to-consumer Profitability | |
E-commerceAmazon is experiencing a surge in profitability with significantly higher retail profit margins. Strategic cost reductions in headcount and fulfillment have materialized into financial gains as unit sales growth has reached equilibrium with fulfillment capacity. |
Amazon Fulfillment Retail margins Cost reduction | |
| 2023 Q4 |
AIThe market rally was fueled by AI dreams and enthusiasm for artificial intelligence potential, propelled by advances like ChatGPT, Microsoft Copilot, and Large Language Models. Microsoft is capitalizing on digital transformation with AI-powered solutions that enhance productivity. |
Artificial Intelligence ChatGPT Digital Transformation Productivity LLMs |
SemiconductorsInitiated position in Analog Devices during semiconductor industry cyclical correction. The company benefits from exposure to industrial and wireless communication infrastructure markets, plus automobile electrification requiring advanced semiconductor content. |
Analog Chips Cyclical Correction Industrial Automotive Wireless | |
CloudMicrosoft's commanding presence in corporations with comprehensive cloud platform including Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service establishes it as crucial IT solutions provider for businesses of all sizes. |
IaaS PaaS SaaS Enterprise Digital Transformation | |
| 2023 Q3 |
AIAlphabet benefits from one of the most disruptive trends in technology as a leader in generative AI. Oracle's OCI Gen 2 solution is particularly well-suited for generative AI workloads. Microsoft is effectively executing its strategy by offering businesses cutting-edge AI-driven solutions like ChatGPT. |
Generative AI ChatGPT Cloud Technology |
CloudOracle's ongoing strategic shift towards cloud-based solutions is driving growth, with notable strides in the hyperscale cloud sector. Microsoft's comprehensive product portfolio encompasses Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service. Intuit is benefiting from the transition to digitally-driven, cloud-based solutions. |
SaaS IaaS PaaS Digital Transformation | |
RatesHigher-for-longer interest rates are creating headwinds for equity markets and specific holdings. American Tower faces pressure from higher-cost debt impacting free cash flow growth. The bond market's gravitational pull is affecting richly valued technology stocks. |
Interest Rates Fed Policy Monetary Policy Bond Market |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Sep 30, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | AMT | American Tower Corporation | Real Estate | Specialized REITs | Bull | NYSE | 5G, Cell Towers, infrastructure, interest rate sensitivity, international exposure, margin of safety, REIT, secular growth | Login |
| Sep 30, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | China, consumer electronics, Ecosystem, Huawei Competition, Installed base, recurring revenue, services, Smartphones | Login |
| Sep 30, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | ACGL|APH|COO|CSGP|DKNG|GWRE|IDXX|IOT|IT|LPLA|MSCI|MTD|PCOR|ROP|TECH|VRSK | Mettler-Toledo International Inc. | Health Care Equipment & Services | Life Sciences Tools & Services | Bull | NYSE | Analytical instruments, Biotech, China, COVID Recovery, Laboratory Equipment, life sciences, market share gains, Pricing power | Login |
| Sep 30, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | ADI|BDX|FI|FND|HAS|META|MSFT|MSI|ORCL|TMO | Oracle Corporation | Information Technology | Systems Software | Bull | NYSE | Cloud computing, Database, Digital transformation, Enterprise software, ERP, generative AI, Hyperscale Cloud, SaaS | Login |
| Sep 30, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | AAPL|MSFT|NFLX|NVDA|UNH | Microsoft Corporation | Information Technology | Systems Software | Bull | NASDAQ | Azure, ChatGPT, Cloud computing, Digital transformation, Enterprise software, generative AI, productivity software, SaaS | Login |
| Sep 30, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | INTU | Intuit Inc. | Information Technology | Application Software | Bull | NASDAQ | Cloud computing, generative AI, market share gains, QuickBooks, recurring revenue, SaaS, Small Business Software, tax preparation | Login |
| Sep 30, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI leadership, Cloud computing, data advantage, digital advertising, generative AI, Google, search engine, YouTube | Login |
| Sep 30, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | DHR | Danaher Corporation | Health Care Equipment & Services | Life Sciences Tools & Services | Bull | NYSE | Bioprocessing, biotechnology, capital allocation, Danaher Business System, diagnostics, life sciences, Molecular Diagnostics, spinoff | 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 |
| 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 | Mar Vista US Quality | MSFT | Microsoft Corporation | Information Technology | Systems Software | Bull | NASDAQ | Artificial Intelligence, Azure, Cloud computing, Digital transformation, Enterprise software, generative AI, SaaS | Login |
| Jun 30, 2025 | Fund Letters | Mar Vista US Quality | JNJ | Johnson & Johnson | Health Care | Pharmaceuticals | Neutral | NYSE | Drug-Pricing, healthcare, litigation, pharmaceuticals, Regulatory risk, Talc Liability | Login |
| Jun 30, 2025 | Fund Letters | Mar Vista US Quality | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI infrastructure, Artificial Intelligence, Custom Asics, hyperscale, semiconductors, Specialized Computing | Login |
| Jun 30, 2025 | Fund Letters | Mar Vista US Quality | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | NYSE | Back-office Applications, Cloud computing, Enterprise software, ERP, generative AI, Hyperscale Cloud, large language models | Login |
| Jun 30, 2025 | Fund Letters | Mar Vista US Quality | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | AI-enabled devices, consumer electronics, Ecosystem, Edge computing, iPhone, recurring revenue, services revenue | 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 | Mar Vista US Quality | GE | GE Aerospace | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, aftermarket services, Aircraft engines, Aviation Growth, Defense, recurring revenue, Turbofan Technology | 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 | Mar Vista US Quality | BRK-A | Berkshire Hathaway Inc. | Financials | Multi-Sector Holdings | Bull | NYSE | capital allocation, Cash management, conglomerate, Insurance, Opportunistic Investing, value investing | 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 |
| Mar 31, 2025 | Fund Letters | Mar Vistas U.S. Quality | V | Visa | Information Technology | Data Processing & Outsourced Services | Bull | NYSE | Cross-Border, Electronic Payments, Fintech, network effects, payment processing, secular growth, Toll Taker | Login |
| Mar 31, 2025 | Fund Letters | Mar Vistas U.S. Quality | CRM | Salesforce | Information Technology | Application Software | Bull | NYSE | Agentforce, Automation, Cloud computing, CRM Software, Customer Data, generative AI, SaaS | Login |
| Mar 31, 2025 | Fund Letters | Mar Vistas U.S. Quality | PEP | PepsiCo | Consumer Staples | Soft Drinks | Bear | NASDAQ | Artificial Ingredients, Beverages, Carbonated Soft Drinks, consumer staples, Frito-Lay, GLP-1, Regulatory risk, Snack Foods | Login |
| Mar 31, 2025 | Fund Letters | Mar Vistas U.S. Quality | AVGO | Broadcom | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI ASICs, Artificial Intelligence, custom silicon, data center, hyperscalers, semiconductors, Vmware | Login |
| Mar 31, 2025 | Fund Letters | Mar Vistas U.S. Quality | MSFT | Microsoft | Information Technology | Systems Software | Bull | NASDAQ | Azure, ChatGPT, Cloud computing, Digital transformation, Enterprise software, generative AI, IaaS, PAAS, SaaS | Login |
| Mar 31, 2025 | Fund Letters | Mar Vistas U.S. Quality | NVDA | NVIDIA | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | Accelerated Computing, AI infrastructure, DeepSeek, GPUs, hyperscalers, Llms, Reasoning Models, semiconductors | Login |
| Mar 31, 2025 | Fund Letters | Mar Vistas U.S. Quality | BRK-B | Berkshire Hathaway | Financials | Multi-Sector Holdings | Bull | NYSE | cash position, conglomerate, defensive, Insurance, strategic investments, underwriting, value investing | Login |
| Mar 31, 2025 | Fund Letters | Mar Vistas U.S. Quality | JNJ | Johnson & Johnson | Health Care | Pharmaceuticals | Bull | NYSE | Biosimilars, defensive, healthcare, Immunology, Medical devices, Medtech, Neurology, Oncology, pharmaceuticals | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | AVGO | Broadcom Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI accelerators, custom silicon, data center, growth, semiconductors, software integration, Vmware | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | CRM | Salesforce, Inc. | Information Technology | Software | Bull | NYSE | Agentforce, CRM, Enterprise software, generative AI, Multi Cloud, SaaS, subscription revenue | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | AMZN | Amazon.com, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | AI implementation, AWS, Cloud computing, e-commerce, Logistics, operating leverage, Prime Video | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | AMT | American Tower Corporation | Real Estate | Specialized REITs | Bull | NYSE | 5G Deployment, Cell Towers, Edge computing, global expansion, REIT, telecommunications infrastructure | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | DHR | Danaher Corporation | Health Care | Life Sciences Tools & Services | Bull | NYSE | Biologic Therapeutics, diagnostics, Healthcare Technology, Life Sciences Tools, Molecular Diagnostics, Scientific Research | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | DIS | The Walt Disney Company | Communication Services | Entertainment | Neutral | NYSE | Content Distribution, Digital platforms, entertainment, Media Transformation, Streaming, Traditional Media | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | GXO | GXO Logistics, Inc. | Industrials | Air Freight & Logistics | Bear | NYSE | E-commerce Fulfillment, Logistics Services, Management Transition, Operational Execution, supply chain, Warehousing | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | MCHP | Microchip Technology Incorporated | Information Technology | Semiconductors & Semiconductor Equipment | Bear | NASDAQ | Cyclical Recovery, Embedded Control, execution challenges, Inventory Correction, Management Change, semiconductors | Login |
| Dec 31, 2024 | Fund Letters | Mar Vistas U.S. Quality | MTD | Mettler-Toledo International Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | Biologic Therapeutics, Healthcare Equipment, Life Sciences Tools, Molecular Diagnostics, Precision Instruments, Scientific Research | Login |
| Jun 30, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | CRM | Salesforce, Inc. | Information Technology | Software | Bull | NYSE | CRM, Customer Data, Enterprise software, Front Office, generative AI, SaaS, Sales cycles, Software, technology | Login |
| Jun 30, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | NKE | Nike, Inc. | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bear | NYSE | Apparel, Consumer Discretionary, Global Brand, innovation, Lifestyle Products, management execution, revenue decline, Sportswear, Wholesale | Login |
| Jun 30, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | DIS | The Walt Disney Company | Communication Services | Entertainment | Bull | NYSE | Consumer Discretionary, Content, Disney, entertainment, Hulu, media, Streaming, theme parks, valuation discount | Login |
| Jun 30, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | APH | Amphenol Corporation | Information Technology | Electronic Equipment, Instruments & Components | Bull | NYSE | acquisition, AI infrastructure, capital allocation, Connectivity, Industrial, Interconnect, operating margins, Sensors, technology hardware | Login |
| Jun 30, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | App Store, consumer electronics, Ecosystem, generative AI, Hardware, iOS, iPhone, Mobile, Software, technology | Login |
| Jun 30, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI, Consumer Engagement, Cost management, digital advertising, infrastructure, restructuring, Revenue Growth, Search, technology | Login |
| Jun 30, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | AVGO | Broadcom Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | acquisition, AI accelerators, Asic, custom silicon, hyperscalers, infrastructure software, semiconductors, subscription model, Virtualization, Vmware | Login |
| Jun 30, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | META | Meta Platforms, Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI development, Content Control, digital advertising, global reach, monetization, operational efficiency, Reels, Regulatory, social media, user engagement | Login |
| Mar 31, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | AMZN | Amazon.com, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Bull, e-commerce, Fulfillment, growth, operational efficiency, Retail Margins | Login |
| Mar 31, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | DIS | The Walt Disney Company | Communication Services | Entertainment | Bull | NYSE | Bull, direct-to-consumer, entertainment, media, Parks, Streaming, turnaround | Login |
| Mar 31, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | EFX | Equifax Inc. | Industrials | Research & Consulting Services | Bull | NYSE | Bull, Credit Reporting, Data Services, Employment Verification, financial services, High Barriers | Login |
| Mar 31, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | ADBE | Adobe Inc. | Information Technology | Software | Bull | NASDAQ | Bull, Creative Professional, digital commerce, generative AI, SaaS, Software | Login |
| Mar 31, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | TDG | TransDigm Group Incorporated | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, aftermarket, Bull, Commercial Aviation, Cyclical Recovery, Defense | Login |
| Mar 31, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | GXO | GXO Logistics, Inc. | Industrials | Air Freight & Logistics | Bull | NYSE | Bull, Cyclical, Logistics, omnichannel retail, supply chain, turnaround | Login |
| Mar 31, 2024 | Fund Letters | Mar Vista Strategic Growth Fund | NKE | NIKE, Inc. | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bull | NYSE | athletic apparel, Brand, Bull, Consumer Discretionary, restructuring, turnaround | Login |
| Dec 31, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | - | Veralto Corporation | Industrials | Industrial Machinery | Bull | NYSE | Analytical instruments, Danaher, high margins, industrial machinery, M&A growth, recurring revenue, spin-off, Water Quality, water treatment | Login |
| Dec 31, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | AMT | American Tower Corporation | Real Estate | Specialized REITs | Bull | NYSE | 5G, Cell Towers, data centers, Edge computing, infrastructure, Interest Rate Sensitive, recurring revenue, REITs, telecommunications | Login |
| Dec 31, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | AAPL|MSFT|NFLX|NVDA|UNH | Microsoft Corporation | Information Technology | Systems Software | Bull | NASDAQ | Artificial Intelligence, Cloud computing, Digital transformation, Enterprise software, IaaS, PAAS, productivity software, SaaS, technology | Login |
| Dec 31, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | 0TDG LN | TransDigm Group Incorporated | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Aftermarket Parts, Defense, high margins, Industrial, Oem, Pricing power, proprietary products | Login |
| Dec 31, 2023 | Fund Letters | Mar Vista Strategic Growth Fund | ADI | Analog Devices, Inc. | Information Technology | Semiconductors | Bull | NASDAQ | analog chips, automotive, Cyclical, Electrification, high switching costs, Industrial, Proprietary technology, semiconductors, Wireless Infrastructure | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | We added to our holdings in Amazon.com Inc. (AMZN). Additionally, companies deploying AI infrastructure are beginning to see tangible improvements in ROIC, driven by more efficient ad targeting, premium AI cloud services with high utilization, and multi-year contracts for high-performance compute and networking components, where holdings including Microsoft, Amazon, Alphabet, and Oracle continue to benefit. |
| APH | We trimmed Amphenol Corp. (APH). Additionally, AI is becoming a true productivity enhancer, with capital equipment substituting for or augmenting human labor, where NVIDIA, Broadcom, and Amphenol continue to benefit from exceptional demand visibility and strong pricing power. |
| AVGO | AI is becoming a true productivity enhancer, with capital equipment substituting for or augmenting human labor, yet markets remain sensitive to the heavy upfront capex required, where NVIDIA, Broadcom, and Amphenol continue to benefit from exceptional demand visibility and strong pricing power. |
| CRM | We trimmed Salesforce Inc. (CRM). |
| DHR | Danaher Corp. (DHR) was among the portfolio's top contributors for the quarter, appreciating +15.62%. After lagging through the first three quarters of 2025, Danaher's (DHR) 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. Operating leverage should drive high single digit EPS growth. The company's strong balance sheet and capital deployment strategy should provide accretive growth for the foreseeable future. |
| EFX | We exited our positions in Equifax (EFX). We divested our position in Equifax (EFX) 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. This change increases uncertainty around the long-term distribution of economics within the mortgage credit ecosystem and widens the range of potential outcomes for EFX. Coupled with a slower-than-expected recovery in the housing market, we believe this evolving industry dynamic has weakened the risk-reward profile of the investment. |
| GOOG | The fourth quarter's top portfolio contributors were Alphabet Inc. (GOOG). Alphabet Inc. (GOOG) was among the portfolio's top contributors for the quarter, appreciating +28.93%. Alphabet's (GOOG) Q4 performance marks a significant triumph, characterized by a rare 'beat and raise' narrative across all critical business segments. The company's recent earnings report was driven by a balanced contribution from its legacy Search and YouTube divisions, with Google Cloud emerging as the standout performer. Cloud's revenue growth reached an impressive 34%, and it boasts an extraordinary $155 billion backlog, a nearly double increase compared to the previous quarter. This remarkable transformation has propelled Cloud from a margin drag to a high-octane profit center. Operational leverage indicates that Alphabet is successfully scaling its infrastructure while maintaining disciplined cost controls. Strategically, the 'AI-first' pivot has transcended its initial roadmap status and become a tangible driver of user engagement and enterprise spending. The milestone of 650 million monthly active users on the Gemini App serves as a tangible counter-narrative to concerns about AI-driven search disruption. By integrating Gemini across its entire ecosystem, Alphabet has fortified its competitive advantage, enabling it to defend its search franchise while simultaneously capturing new market share in the enterprise cloud sector. This fundamental strength underpins a trajectory of high-teens EPS growth, making a 20x–25x earnings multiple appear conservative despite the stock's recent appreciation. Early monetization has been most visible in advertising, through platforms such as Alphabet and Meta; cloud computing, via holdings including Microsoft, Amazon, Alphabet, and Oracle. |
| JNJ | Johnson & Johnson (JNJ) was among the portfolio's top contributors for the quarter, appreciating +12.31%. Johnson & Johnson (JNJ) stock demonstrated strong performance in Q4, driven by robust financial results, upward guidance revisions, and accelerating growth for the pharmaceutical and medical technology segments. The company's consistent execution across key business segments and positive market sentiment, despite a significant headwind from Stelara generics, contributed to its outperformance relative to broader market indices. Management continues to expect 5-7% revenue growth through 2030 which exceeds consensus estimates. |
| LIN | Linde plc (LIN) detracted from performance, declining -9.90%. We added to our holdings in Linde plc (LIN). While the company remains a high-quality global leader in industrial gases, shares of Linde plc (LIN) 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. Much of this is attributable to economic stagnation in Europe and suppressed demand in China. While price increases helped offset some costs, they were insufficient to mask the 1-3% volume declines evidenced in these key territories. In response to this weakness, management announced cautious guidance in late October and during subsequent updates in December, causing consensus earnings estimate reductions. These revisions drove P/E multiple contraction as investors rotated out of high-quality, defensive names like Linde into higher growth opportunities in other sectors like technology. Despite the recent dip, we believe much of Linde's woes are transitory in nature and not a breakdown of the business model. The company's $10+ billion backlog, particularly in clean hydrogen and electronics, provides a strong foundation for a long-term growth recovery. We remain holders of the shares of this high-quality, wide moat business in anticipation of a future growth reacceleration. |
| META | Early monetization has been most visible in advertising, through platforms such as Alphabet 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 with leading AI companies, including OpenAI and Meta. |
| MSFT | Microsoft Corp. (MSFT) detracted from performance, declining -6.45%. Microsoft's (MSFT) stock came under pressure in Q4 as investors grew concerned about the rising cost of building AI data infrastructure to support foundation models such as OpenAI. Capital expenditures across Microsoft and its hyperscaler peers accelerated in calendar 2025 and are expected to increase again in 2026. While these investments are substantial, Microsoft is well positioned to fund this growth through its large and expanding base of operating cash flows. That said, the company does have meaningful exposure to OpenAI, which remains relatively unproven given the scale and duration of its contractual commitments. We continue to maintain Microsoft as a top holding, as we believe the company's financial strength, diversified revenue streams, and broad customer base provide significant resilience. Microsoft is seeing accelerating growth within Azure, its hyperscale cloud platform which remains capacity-constrained, alongside increasing adoption of its Copilot offerings across its extensive enterprise customer base. We believe Microsoft should be well positioned to generate attractive long-term returns from its partnership with OpenAI and to effectively monetize generative AI capabilities across its global enterprise IT footprint through its expanding suite of Copilot and AI-enabled products. Early monetization has been most visible in cloud computing, via holdings including Microsoft, Amazon, Alphabet, and Oracle. |
| NFLX | During the quarter, we initiated new investments in Netflix (NFLX). Netflix (NFLX) has built a durable economic moat around its vertically-integrated, globally-scaled streaming business. As the first company to establish a global subscription media platform within the $500 billion TV market, Netflix is now reaping the benefits of its early leadership. Its march toward global dominance has been propelled by substantial investments in both technology and content. The broader media industry, meanwhile, is undergoing a structural transformation driven by technology, as the traditional TV bundle fades and legacy media companies scramble to replicate Netflix's success. However, without global scale, the escalating costs of competing in the content wars are unsustainable. With more than 300 million members, Netflix enjoys the lowest content cost per subscriber in the industry, an advantage that enables it to profitably outspend rivals and accelerate its competitive flywheel. We expect this edge to continue compounding over time. At the time of purchase, Netflix's stock was down nearly 20% from its February peak. Near-term macroeconomic uncertainty likely contributed to this volatility, creating an attractive entry opportunity. This downward pressure was further intensified by market skepticism surrounding Netflix's $82.7 billion bid for Warner Bros. Discovery. While the deal promises a massive expansion of premium intellectual property (IP), investors have reacted with caution to the prospect of a bidding war with Paramount Skydance and the operational complexities of such a historic pivot. While we acknowledge these integration risks, we believe the long-term upside significantly outweighs the near-term downside. In our view, the acquisition of iconic franchises like Harry Potter, the DC Universe, and the HBO library represents a generational shift from a 'streaming platform' to a 'global media powerhouse.' We believe the market is over-discounting the strategic moat this IP provides, creating a compelling risk-reward profile for patient investors. With industry-leading profitability, Netflix continues to pull ahead of competitors through disciplined execution, a high-quality content slate, and unmatched scale. Additionally, we believe the company's ad-supported tier and push into live sports represent significant new growth initiatives. Entering these catalysts from a position of strength—as the global leader in streaming revenue, subscribers, viewing hours, content, and profits—positions Netflix for intrinsic value compounding of approximately 15–20% over our investment horizon. |
| NVDA | AI is becoming a true productivity enhancer, with capital equipment substituting for or augmenting human labor, yet markets remain sensitive to the heavy upfront capex required, where NVIDIA, Broadcom, and Amphenol continue to benefit from exceptional demand visibility and strong pricing power. Taiwan Semiconductor (TSM) is the dominant manufacturer of semiconductors for the world's leading fabless chip designers including NVIDIA, Apple, Broadcom, and others. |
| ORCL | Oracle Corp. (ORCL) detracted from performance, declining -30.58%. We trimmed Oracle Corp. (ORCL). Investor enthusiasm for Oracle's (ORCL) 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. As a result, investors grew increasingly concerned about Oracle's ability to fund these investments and the concentration of future revenue exposure tied to OpenAI. While OpenAI is an early leader in artificial intelligence with nearly 900 million weekly average users, it remains relatively unproven given the scale and duration of its contractual commitments. We recognize the risks associated with OpenAI's ability to fund these obligations and to successfully monetize its platform beyond consumer subscriptions, including through advertising and deeper penetration of the enterprise IT market. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. We continue to maintain a smaller weighting, as we believe Oracle is capable of managing its capital requirements and generating attractive long-term returns from these investments. Early monetization has been most visible in cloud computing, via holdings including Microsoft, Amazon, Alphabet, and Oracle. |
| ROP | We exited our positions in Roper Technologies (ROP). After a decade-long partnership with Roper Technologies (ROP), we have made a strategic decision to exit our position. Roper has an exceptional track record of compounding capital. However, our decision to sell is a reflection of our commitment to maintaining a portfolio of high conviction, high growth businesses. Our decision to sell was based on three factors. Firstly, Roper's organic growth rates have begun to lag its pure-play software peers. Roper's diversified model now acts as a drag when compared to specialized software-as-a-service companies that can focus a majority of their R&D on a single, high-growth vertical. Secondly, Roper's 'niche market leader' strategy is built on acquiring businesses with high barriers to entry and strong recurring revenue. However, 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. At a forward P/E ratio often exceeding that of the market and closer to higher growth peers, the market is pricing in a level of growth we believe is optimistic given the underlying organic trends. |
| SAP | We trimmed SAP SE (SAP). |
| TSM | During the quarter, we initiated new investments in Taiwan Semiconductor (TSM). Taiwan Semiconductor (TSM) is the dominant manufacturer of semiconductors for the world's leading fabless chip designers including NVIDIA, Apple, Broadcom, and others. TSM is the world's preeminent semiconductor foundry due to its leadership position in producing the most advanced chips that power the world's most sophisticated supercomputers, personal computers, and mobile devices. It is also one of only two manufacturers that operates at the leading edge of semiconductor process technology. This technological leadership, reinforced by scale economies, proprietary process know-how, and decades of accumulated manufacturing expertise, creates a formidable competitive moat that is increasingly difficult for other foundries to replicate. As a result, TSM earns structurally higher gross margins than its peers through a combination of technology-driven pricing power and superior manufacturing efficiency. TSM has also benefited from ongoing consolidation within the semiconductor industry, which has accelerated demand for integrated systems built on the most advanced process nodes. At the same time, the rapid growth of artificial intelligence, high-performance computing, and the Internet of Things is driving sustained demand for leading-edge semiconductors, as computing becomes increasingly intelligent and interconnected. We believe the global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with true leading-edge capabilities. TSM is uniquely positioned to benefit regardless of which fabless chip architecture ultimately dominates high-performance computing, as its customers span the full spectrum of leading AI, CPU, GPU, and custom accelerator designs. Semiconductor manufacturing is inherently cyclical and capital intensive, yet we believe these factors further strengthen TSM's moat rather than weaken it. The escalating cost and complexity of advanced-node fabrication requires tens of billions of dollars in sustained annual capital expenditures, which raises the barriers to entry and constrains credible competition. During industry downturns, TSM's scale, balance sheet strength, and customer entrenchment should allow it to continue investing through the cycle, widening the technology gap versus smaller or less well-capitalized peers. We believe these structural advantages should enable TSM to generate returns on invested capital well above its cost of capital across the business cycle and to compound intrinsic value at rates meaningfully in excess of broader market growth over our investment horizon. |
| V | We added to our holdings in Visa Inc. (V). |
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