| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.1% | 7.0% | 26.8% |
| 2025 | 2024 |
|---|---|
| 26.8% | 6.2% |
The Polaris Global Equity Composite delivered strong performance in Q4 2025, gaining 7.00% versus 3.20% for the MSCI World Index, capping a year where international equities outperformed the S&P 500 for the first time in the 2020s. This reversal was driven by three converging forces: a weaker U.S. dollar, more attractive valuations abroad, and slowing momentum in U.S. tech. The Composite's annual return of 26.82% significantly outpaced the benchmark's 21.60%. Key contributors included Korean memory manufacturers SK Hynix and Samsung Electronics, benefiting from AI-driven demand and expected memory price increases in 2026. Healthcare holdings like Lantheus and Jazz Pharmaceuticals delivered strong results, while industrials and financials also contributed meaningfully. The manager maintains a disciplined value approach, focusing on quality companies with strong cash flows and attractive valuations meeting genuine business momentum. Looking ahead, international equities remain compelling given attractive valuations, shareholder-friendly corporate behavior, and continued dollar weakness, though risks include government intervention, fiscal pressures, and tariff constraints.
International equities have structurally outperformed U.S. markets for the first time in the 2020s, driven by a weaker U.S. dollar, more attractive valuations abroad, and slowing momentum in U.S. tech, creating compelling diversification opportunities in targeted developed and emerging markets.
As we enter 2026, international equities remain compelling following a structural performance shift over the past year. The manager expects to continue finding excellent opportunities in targeted developed and emerging markets, from German infrastructure and defense spending to resource-rich South American markets to AI-focused companies in Asia, while maintaining a disciplined approach focused on attractive valuations meeting genuine business momentum.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 20 2026 | 2025 Q4 | 000270.KS, 000660.KS, 005930.KS, 1299.HK, 2318.HK, 5871.TW, 6758.T, 8001.T, 8002.T, 8591.T, 8729.T, ALSN, ARW, BABA, BARRY.SW, CAP.PA, CG, COF, DHL.DE, IAG.L, INGR, JAZZ, LIN, LNTH, LTM, LUN.TO, MG.TO, MKSI, ML.PA, MPC, NVS, NXT.L, SBH, SMWRQ, TSN, UTHR, VIPS, YAR.OL | AI, diversification, global, international, Outperformance, semiconductors, technology, value |
000660 KS MKSI CAP FP JAZZ UTHR 267260 KS |
AI demand drove performance across semiconductor and technology sectors, with memory chip suppliers benefiting from supply-demand constraints and expected price increases in 2026. Companies like… |
| Oct 16 2025 | 2025 Q3 | 8002 JP, CG, LKQ, LUN CN, SBH, UTHR | Artificial Intelligence, financials, Global Equities, industrials, semiconductors | - | The fund notes that global equity performance was supported by enthusiasm for AI and broad-based earnings strength, with particular gains from U.S., Japan, and Canada.… |
| Jul 22 2025 | 2025 Q2 | 000660 KS, 8002 JP, GNC LN, JAZZ, LTM, UNH | diversification, fundamentals, Global Equities, Governance, Revaluation |
8002 JP 000660 KS GNC LN UNH |
The letter highlights global equity opportunities driven by valuation normalization outside crowded U.S. mega-cap stocks. Management emphasizes diversification, fundamentals, and exposure to markets undergoing structural… |
| Mar 31 2025 | 2025 Q1 | ARW, CVS, DNB, DTE GR, ENI IM, FTK GR, MG CN, MSFT, MX CN, VIPSM | - | - | - |
| Dec 31 2024 | 2024 Q4 | ALSN, GD, LTM, SAIC, TGLS, WMB | - | - | - |
| Sep 30 2024 | 2024 Q3 | 000270 KS, 055550 KS, 8002 JP, 9433 JP, ABBV, AD NA, BWY LN, INGR, MSFT, MTB, MX CN, TD CN, UTHR | - | - | - |
| Jun 30 2024 | 2024 Q2 | 000270 KS, ALSN, FTK GR, GNC LN, HXSCL, LKQ, LUN CN, MSFT, NEE, UTHR | - | - | - |
| May 9 2024 | 2024 Q1 | CROX, PUB FP | - | - | - |
| Jan 18 2024 | 2023 Q4 | - | - | - | - |
| 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 |
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 | |
Energy TransitionThe portfolio maintains significant exposure to electrification themes through companies like Bloom Energy, which provides clean, reliable power solutions for AI data centers. The energy transition represents a structural opportunity as companies race to build power infrastructure to support growing electricity demands from AI workloads. |
Electrification Clean Energy Power Generation Fuel Cells Grid Infrastructure | |
Semiconductor CycleThe portfolio's underweight to South Korean semiconductor companies, including Samsung Electronics and SK Hynix, was a key driver of relative underperformance. These stocks continued to benefit from strong AI-related memory demand and elevated investor enthusiasm. Memory chips are largely a commoditized product with weak pricing power, extreme capital intensity and pronounced boom-bust cycles that lead to volatile earnings. |
Memory South Korea Cyclical Commoditized Volatility | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 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 |
GrowthGrowth retained a narrow edge for the full year in large caps despite underperforming in Q4. Technology and Communication Services delivered exceptional longer-term returns, though near-term leadership may remain more evenly distributed. A sustained Growth resurgence will likely depend on renewed confidence in AI-driven earnings. |
Growth Technology AI Communication Services Mega-cap | |
| 2025 Q2 |
ValuationPrice discipline and margin of safety are central to investment decisions. The firm emphasizes that price synthesizes expectations, risks, and narratives, with low entry prices providing protection against adverse scenarios. They monitor implied real IRR as a key metric for prospective returns. |
IRR Margin of Safety Price Discipline Asymmetry Risk Premium |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 20, 2026 | Fund Letters | Bernard Horn | 267260 KS | HD Hyundai Electric | Industrials | Electrical Equipment | Bull | New York Stock Exchange | Capacity, Electrification, infrastructure, Margins, Power | Login |
| Jul 22, 2025 | Fund Letters | Bernard Horn | 8002 JP | Marubeni Corporation | Industrials | Trading Companies & Distributors | Bull | New York Stock Exchange | buybacks, diversification, Governance, Japan, Trading | Login |
| Jul 22, 2025 | Fund Letters | Bernard Horn | 000660 KS | SK hynix Inc. | Information Technology | Semiconductors | Bull | New York Stock Exchange | AI, Cyclical, datacenters, Memory, semiconductors | Login |
| Jul 22, 2025 | Fund Letters | Bernard Horn | GNC LN | Greencore Group plc | Consumer Staples | Packaged Foods & Meats | Bull | New York Stock Exchange | convenience, Food, Margins, Mna, UK | Login |
| Jul 22, 2025 | Fund Letters | Bernard Horn | UNH | UnitedHealth Group Incorporated | Health Care | Managed Health Care | Bear | New York Stock Exchange | healthcare, Managedcare, Margins, Regulation, Usa | Login |
| Jan 20, 2026 | Fund Letters | Bernard Horn | 000660 KS | SK Hynix Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | AI, DRAM, HBM, Memory, Pricingpower | Login |
| Jan 20, 2026 | Fund Letters | Bernard Horn | MKSI | MKS Instruments, Inc. | Information Technology | Semiconductor Equipment | Bull | NASDAQ | AI, CapEx, divestment, Margins, Semicap | Login |
| Jan 20, 2026 | Fund Letters | Bernard Horn | CAP FP | Capgemini SE | Information Technology | IT Consulting & Other Services | Bull | Euronext Stock Exchange | AI, cloud, Consulting, efficiency, Margins | Login |
| Jan 20, 2026 | Fund Letters | Bernard Horn | JAZZ | Jazz Pharmaceuticals plc | Health Care | Pharmaceuticals | Bull | NASDAQ | FDA, growth, Oncology, pharma, pipeline | Login |
| Jan 20, 2026 | Fund Letters | Bernard Horn | UTHR | United Therapeutics Corporation | Health Care | Biotechnology | Bull | NASDAQ | Biotech, cashflow, innovation, Pulmonary, Transplants | Login |
| TICKER | COMMENTARY |
|---|---|
| 000270.KS | South Korean car manufacturer Kia Corp. fared well as sales volumes were expected to reach an all-time high in 2025. An upcoming key model refresh cycle and positive U.S.-Korea tariff resolutions portend strong sales volumes into 2026. |
| 000660.KS | SK Hynix has solidified its leadership in high-bandwidth memory (HBM), emerging as the exclusive HBM supplier for Microsoft's in-house AI accelerator and securing roughly two-thirds of NVIDIA's anticipated HBM4 demand for its next-generation platforms at meaningfully higher price points and margins than prior generations. |
| 005930.KS | Top gainers included Samsung (+38% in U.S. dollar terms) |
| 1299.HK | Proceeds were deployed to three Asian companies: 1) Alibaba Group Holding is the largest Chinese e-commerce and cloud company, which has stabilized its e-commerce business and invested in the growing cloud business; 2) Asian insurance company AIA Group Limited is leveraging growing demand from Hong Kong, China and other Asian countries; and 3) Chinese company Ping An Insurance may benefiting from the structural demand for health and protection products given the aging population and limited coverage of national insurance. |
| 2318.HK | Top gainers included Ping An Insurance (+23%) |
| 5871.TW | Chailease Holding Co. had lackluster results, with lower revenues and higher credit losses; in this context, the company is taking a more cautious lending approach. These challenges are linked to a general slow macroeconomy (in China and Thailand) and intense market competition, which have impacted demand for leasing and financing services. |
| 6758.T | Sony |
| 8001.T | Japanese trading/investment companies Marubeni Corp. and Itochu Corp. both posted gains in excess of 10% for the quarter, executing on both organic and acquisitive growth initiatives, while focusing on better shareholder returns. |
| 8002.T | Japanese trading/investment companies Marubeni Corp. and Itochu Corp. both posted gains in excess of 10% for the quarter, executing on both organic and acquisitive growth initiatives, while focusing on better shareholder returns. |
| 8591.T | Japanese diversified financial services group ORIX Corp. gained on strong quarterly earnings, with record net income and earnings per share. The company collected large capital gains from asset sales, namely the divestment of its stake in Greenko, while also partnering with Qatar Investment Authority to launch a new private equity fund. ORIX management raised its full-year earnings forecast and expanded its share repurchase program, boosting investor confidence. |
| 8729.T | Japan's Sony Financial Group Inc. (spin-off from Sony Group) was also exited. |
| ALSN | Investors lauded Allison Transmission Holdings on its closing of the Dana Off-Highway acquisition; the deal materially expands Allison's addressable markets and improves long-term growth visibility. |
| ARW | We initiated a position in this electronics wholesaler. We believe Arrow is a higher-quality distributor and more attractively valued than Avnet, which we sold. |
| BABA | Alibaba was a detractor during the quarter after the company reported mixed fiscal Q2 results. While cloud revenue growth accelerated and margins remained stable, the core commerce business struggled with slowing growth and significant profit pressure, particularly in the quick commerce segment where heavy investment and intense competition led to a sharp decline in profitability. |
| BARRY.SW | Barry Callebaut, the Swiss chocolatier, was the most enjoyable note to write in Q4. It was an interesting situation, and a high-quality stock that had been shaken by the surge in cocoa futures. Cocoa prices are now down over 50% from their peak, as reports of better yields and improving disease rates increase. The company has taken steps to insulate itself from a recurrence and is recovering as the cocoa market normalises. |
| CAP.PA | Mondrian's disciplined, bottom-up valuation framework allows for selective exposure to AI-related opportunities while we maintain a focus on companies trading at compelling valuations, with limited balance sheet risk, such as Capgemini and Samsung outside the US and Microsoft and Alphabet within the US. |
| CG | During the quarter, Chinese online discount retailer Vipshop Holdings Ltd., U.S. based investment firm The Carlyle Group, Canadian auto parts manufacturer Magna International and Swiss pharma Novartis AG were sold as each reached target valuation limits. |
| COF | We added to Capital One Financial Corporation, which was a core new addition in the prior quarter. |
| DHL.DE | DHL Group reported quarterly results that beat profit expectations (despite a slight revenue dip), driven by cost efficiencies and e-commerce growth. |
| IAG.L | International Consolidated Airlines gained on the same demand metrics, with better-than-expected earnings and balance sheet strength enabling strategic growth (new routes, fleet additions) and buybacks. |
| INGR | Ingredion produces food and beverage ingredients, which are primarily starches and sweeteners. The company is driving growth by producing modified ingredients that serve specialty markets and address wellness trends, like reducing sugar content or enhancing protein while preserving texture. We believe our purchase of Ingredion offers exposure to a proven business with limited cyclicality trading at 10x earnings and paying a 3% dividend yield. |
| JAZZ | Jazz Pharmaceuticals, in the Health Care sector, was a top performer, advancing nearly 30% driven by strong third quarter performance and positive clinical trial results for one of its cancer drugs. We continue to hold the company in the Fund. |
| 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. |
| LNTH | In health care, Lantheus Holdings was up nearly 30% after reporting quarterly results with revenue exceeding expectations and flagship prostate cancer imaging agent Pylarify performing well. Lantheus secured a licensing deal with GE Healthcare to bring Pylarify to Japan, while its new formulation is expected to meet U.S. FDA approval in March 2026. |
| LTM | LATAM Airlines Group, the third largest contributor, is a leading commercial airline in South America that was added to the Fund in 2023. Needless to say, the airline industry had been hit extremely hard by the pandemic, although Latin America was arguably among the hardest hit of all, as the region's air travel was severely restricted, while its airlines were generally not provided with government assistance, unlike in the cases of some airlines in Europe, North America, and Asia. The consequences for much of the industry in Latin America were dire, with numerous carriers in the region (including LATAM) either entering bankruptcy or negotiated settlements with creditors outside of bankruptcy. Shares of LATAM were purchased in the Fund in 2023, shortly after its emergence from bankruptcy. The stigma of the bankruptcy and the sting of the pandemic repelled investors, enabling the Fund to purchase shares at what we believed to be a modest valuation that, again, priced in very low expectations. This was despite our view that LATAM had a much-improved financial profile, competitive position, and cost structure post-bankruptcy, as that process enabled LATAM to meaningfully reduce its debt load and significantly reduce operating costs through headcount reductions, supplier contract renegotiations, and other efficiency initiatives. Since then, LATAM shares have benefited from a recovery and growth in passenger volumes as the region continues to recover from the severe 2020-2021 downturn, and in 2025, performance was driven by impressive business results that have resulted in increased profitability, share repurchases, and improved analyst expectations. |
| LUN.TO | During the fourth quarter and full-year 2025, Lundin Mining and Capstone Copper provided two of the Fund's largest contributions to performance. We have been optimistic, over a long holding period for both companies, that the indispensable nature of copper to modern economies and the exceptional difficulty of maintaining current global supply would become better appreciated. During the last couple of years, we would say that a growing awareness has begun. |
| MG.TO | During the quarter, Chinese online discount retailer Vipshop Holdings Ltd., Canadian auto parts manufacturer Magna International and Swiss pharma Novartis AG were sold as each reached target valuation limits. |
| MKSI | MKS shares advanced nicely during the quarter as the business continues to benefit from end markets picking up. Specifically, their Electronics and Packaging business is showing accelerating growth, partly due to AI-related applications. |
| ML.PA | French tire manufacturer Michelin sold off in October after the company issued a significant guidance cut, in part due to tariff-induced margin pressure. |
| MPC | Rare refinery earnings miss on operational items that we believe to be one-time in nature. Favorable 2026 capex guidance. |
| NVS | During the quarter, Chinese online discount retailer Vipshop Holdings Ltd., Canadian auto parts manufacturer Magna International and Swiss pharma Novartis AG were sold as each reached target valuation limits. |
| NXT.L | We initiated two new positions during the year—Greggs and AJ Bell, whilst reducing our exposure to NEXT and Compass Group; and selling out of AutoZone entirely during September. |
| SBH | U.S. beauty supplier, Sally Beauty, reported strong same store sales, recovering from prior quarter lows; subsequent profit taking and consumer spending concerns in the wake of the U.S. government shutdown pressured the stock. |
| SMWRQ | Sector performance would have been even higher if not for Smurfit Westrock and Linde PLC. Smurfit missed quarterly earnings estimates and management trimmed full-year guidance due to challenging demand for paper packaging. |
| TSN | Tyson Foods' management pointed to a structural demand shift to lower-priced protein (chicken instead of beef); the company is the largest poultry provider in the U.S. |
| UTHR | Biopharma Eli Lilly, biotech stocks Incyte and United Therapeutics, and life sciences giant Danaher all contributed positively to strong Q4 performance. |
| VIPS | During the quarter, Chinese online discount retailer Vipshop Holdings Ltd., Canadian auto parts manufacturer Magna International and Swiss pharma Novartis AG were sold as each reached target valuation limits. |
| YAR.OL | Yara's shares performed well on the back of EPS revisions. Part of the surprisingly high EPS growth was due to Yara International increasing its EPS from $1.75 in 2024 to around $4.25 estimated for 2025 (vs $2.65 expected for 2025 at the start of the year). We expect Yara to again surpass analysts' earnings expectations over the next few years for various reasons related to tight new supply and the recently commenced Carbon Border Adjustment Mechanism (CBAM) in the EU. This is a very well managed business that we have owned for over 20 years that we think we understand well. |
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