| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.41% | 13.26% | 19.95% |
Polaris Global Equity returned 13.26% net in Q2 2026, slightly trailing the MSCI World Index's 13.90% but extending year-to-date outperformance to 19.95% versus 9.94%. The quarter was driven by AI-linked semiconductor strength, with SK hynix and Samsung delivering standout gains on HBM demand, and healthcare innovation, led by Lantheus (M&A bid), CVS (GLP-1 launch), and Cytokinetics (FDA approval). Airlines benefited from strong travel demand and lower oil prices following the U.S.-Iran interim deal. The manager exited MKS and SKF at rich valuations and rotated into Adobe, Fujifilm, UniCredit, and Booking Holdings, viewing recent market concentration as creating dislocations in fundamentally sound, cash-generative businesses. China was the largest detractor, with Alibaba facing U.S. blacklist designation and regulatory headwinds. The manager maintains a constructive but selective outlook, describing the current environment as the early innings of a multi-year value opportunity in international equities, with non-U.S. markets offering compelling situations where prices diverge from fundamentals. Cash stands at 2.1%.
The manager is positioned for a multi-year value opportunity in global equities, with concentrated exposure to AI-driven semiconductor infrastructure, healthcare innovation, and international financials and industrials trading at attractive valuations relative to fundamentals.
The manager maintains a constructive but selective outlook, viewing the current environment as fragile but opportunistic. They believe the market's narrow leadership and elevated valuations in mega-cap growth stocks have created dislocations that favor value and international equities. The manager sees this as the early innings of a multi-year opportunity to own under-appreciated, cash-generative businesses positioned to compound through a tougher macro backdrop, with non-U.S. markets offering particularly compelling situations where prices diverge from fundamentals.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 27 2026 | 2026 Q2 | 000660 KS, 1299 HK, 4901.T, 8002.T, 8591.T, ADBE, ARW, BPOP, CVS, CYTK, DHL.DE, JAZZ, LNTH, MKSI, RYA.I, UCG.MI | AI, Airlines, China, Global Equity, healthcare, international, semiconductors, value | - | Polaris Global Equity delivered 13.26% in Q2, driven by AI semiconductor infrastructure (SK hynix, Samsung) and healthcare innovation (Lantheus M&A, CVS GLP-1). The manager rotated from richly valued names into Adobe, Fujifilm, UniCredit, and Booking Holdings, viewing market concentration as creating value dislocations. China detracted on Alibaba regulatory headwinds. The manager sees early innings of a multi-year international value opportunity with 2.1% cash. |
| Apr 17 2026 | 2026 Q1 | 000660 KS, 005930 KS, ARW, CAP.PA, COF, DNB.OL, E, ELV, GILD, LNTH, LUN.TO, MEOH, MKSI, MPC, NVDA, SLM, TTE, UTHR, WBS, YAR.OL | AI, diversification, energy, Fertilizers, Geopolitical, global, semiconductors, value | - | Polaris outperformed significantly in Q1 2026 as geopolitical shocks from the Iran war and Strait of Hormuz closure created sector rotations favoring energy and materials over growth. The manager's global diversification strategy is positioned to benefit from the growing recognition that U.S.-only investing is no longer optimal, with selective opportunities emerging from volatility-driven dislocations. |
| 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 |
International equities structurally outperformed U.S. markets in 2025 for the first time this decade, driven by dollar weakness, attractive foreign valuations, and slowing U.S. tech momentum. The Composite returned 26.82% versus 21.60% for MSCI World, led by Korean memory manufacturers benefiting from AI demand. The disciplined value approach continues finding compelling opportunities in targeted global markets. |
| Oct 16 2025 | 2025 Q3 | 000660.KS, 005930.KS, 055550.KS, 5019.T, 6758.T, 8306.T, 8591.T, ABBV, ALSN, BARRY.SW, BPOP, CAP.PA, CG, CVS, DHL.DE, DTG.DE, ELV, GD, IAG.L, IPS.PA, JAZZ, LKQ, LNTH, LUN.TO, MEOH, MG, MKSI, MNDI.L, MPC, NEE, PUB.PA, SBH, SLM, UNH, UTHR, VIPS | AI, Energy Transition, financials, global, healthcare, semiconductors, Trade Policy, Valuations | - | Polaris underperformed in Q3 despite strong healthcare and financials performance, as narrow AI-driven market concentration dominated returns. The manager warns of correction risk from frothy AI valuations while positioning for broad-based global growth through attractively-priced economically-sensitive sectors and geographic diversification beyond tech-heavy U.S. markets. |
| Jul 22 2025 | 2025 Q2 | 000270.KS, 000660.KS, 005930.KS, 055550.KS, 066570.KS, 8002.T, 8306.T, ABBV, ALSN, BARN.SW, BKT.MC, CAP.PA, COF, CTC.TO, DG.PA, ELE.MC, ELV, GNC.L, IAG.L, IETB.BR, JAZZ, JDEP.AS, JPM, LKQ, LTM, LUN.TO, MKSI, NXT.L, OTEX, SNY, TSN, UNH, YAR.OL | Airlines, diversification, Europe, financials, global, semiconductors, Trade, value |
8002 JP 000660 KS GNC LN UNH |
Polaris delivered strong Q2 performance through geographic diversification away from overvalued U.S. mega-caps toward European and emerging markets. Trade policy normalization and geopolitical de-escalation drove gains in semiconductors, airlines, and financials. Active portfolio repositioning added European banks and utilities while maintaining conviction in international opportunities as investors rotate from expensive U.S. growth stocks. |
| Mar 31 2025 | 2025 Q1 | 000660.KS, 005930.KS, 066570.KS, ABBV, ALSN, ARW, CFR, CG, CVS, DCOM, DG.PA, DNB.OL, DTE.DE, EBC, ENI.MI, FTK.DE, GILD, HNR1.DE, IAG.L, INCH.L, IPG, LOOM.ST, MEOH.TO, MGA.TO, MKSI, MPC, MSFT, MTB, MUV2.DE, NTRS, NXT.L, OTEX.TO, PFS, PUB.PA, SBH, SDZ, SW, TTE, UTHR, VIPS, WBS, WMB, WSBC | AI, energy, Europe, financials, global, tariffs, technology, Trade | - | Polaris Global Equity returned 4.12% in Q1 2025, outperforming MSCI World's -1.68% decline amid trade policy volatility and AI disruption. European financials and healthcare drove performance while the manager exited overvalued positions including Microsoft. International markets surprised with outperformance as tariff negotiations create opportunities in undervalued global equities versus concentrated U.S. mega-cap tech. |
| Dec 31 2024 | 2024 Q4 | 000660.KS, 005930.KS, 066570.KS, 6758.T, ALSN, CFR, COF, CROX, CVS, ELV, GD, GILD, JAZZ, JPM, ML.PA, SAIC, SBH, SLM, TGLS, UNH | banks, financials, Geopolitical, global, inflation, value | - | Value-oriented global equity portfolio underperformed in Q4 as growth stocks rallied on Fed rate cuts. Geopolitical tensions weighed on international holdings while U.S. financials outperformed on regulatory optimism. Manager expects higher-for-longer rates to favor value stocks with strong earnings and cash flows, continuing to add attractively priced companies. |
| Sep 30 2024 | 2024 Q3 | ABBV, ALSN, BPOP, CTC.TO, GILD, GLPI, INGR, MPC, MSFT, MTB, NOV, NVDA, SAIC, SBH, UTHR | AI, Biotechnology, cyclicals, financials, global, rates, value | - | Polaris outperformed in Q3 as rate cuts drove rotation from tech into cyclicals where the fund is overweight. The normalized rate environment favors value stocks and fundamentally-strong companies. Strong performance in financials and biotech offset AI-related weakness. Manager opportunistically added Japanese names post-crash and a gaming REIT, positioning for continued global recovery benefiting cyclicals. |
| Jun 30 2024 | 2024 Q2 | 000270.KS, 000660.KS, 066570.KS, 2338.HK, 8001.T, 8002.T, ALSN, ANTO.L, BARN.SW, CG, CVS, DG.PA, DTG.DE, ELV, FTK.DE, GNC.L, JAZZ, LKQ, LUN.TO, MEOH, MG, MPC, MSFT, MUV2.DE, NEE, NVS, OTEX, SRBANK.OL, SVEG.OL, TEP.PA, TSN, U11.SI, UNH, UTHR, WBS, WMB | AI, Copper, Energy Transition, financials, global, healthcare, value | - | Polaris underperformed in Q2 despite strong copper and AI-driven gains from materials and technology holdings. Healthcare and utilities contributed while consumer discretionary lagged. The manager expects slow growth ahead, positioning defensively with cyclicals while adding to healthcare and energy as interest rates normalize and technology remains firm. |
| May 9 2024 | 2024 Q1 | 000660.KS, 005930.KS, 066570.KS, ALSN, ANTO.L, CG, CROX, DCOM, DTG.DE, HNR1.DE, LUN.TO, MKSI, MSFT, MUV2.DE, NXT.L, OTEX, PUB.PA, SKG.L, SONY, TEP.PA | AI, Copper, financials, global, industrials, rates, technology, value | - | Polaris Global Equity lagged benchmarks in Q1 due to technology and U.S. underweights, but generated broad-based gains led by industrials and consumer discretionary. The manager rebalanced toward 2024 themes including AI beneficiaries and copper miners. Expects modest rate cuts to benefit cyclicals if recession is avoided. |
| Jan 18 2024 | 2023 Q4 | 000270.KS, 000338.SZ, 000660.KS, 005930.KS, 6758.T, 7267.T, AD.AS, ALSN, AMC, BERY, BPOP, BWY.L, COF, ENI.MI, GD, HNR1.DE, IBOC, IPS.PA, JAZZ, KGX.DE, MSFT, MUV2.DE, NOV, NOVN.SW, NXT.L, PUB.PA, SBH, SDZ.SW, SKG.L, SLM, TW.L, WBS, YAR.OL | AI, Banking, financials, global, interest rates, value | - | Polaris Global Equity outperformed in Q4 2023 driven by overweight financials positioning as Fed signaled potential rate cuts. The fund invests in AI value derivatives and cash-flow generative companies, positioning for the anticipated shift from growth to value stocks as interest rates normalize and cost of capital becomes appropriately priced. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI-driven demand for memory chips and semiconductor equipment drove significant outperformance in IT holdings. SK hynix sold out its 2026 HBM capacity and joined the $1 trillion market-cap club, while Samsung distributed 12-layer HBM4E samples. The manager views AI infrastructure as a multi-year upcycle with strong fundamentals despite late-quarter profit-taking. |
Memory HBM Semiconductors Data Centers |
Semiconductor CycleMemory and semiconductor equipment companies delivered standout performance on commodity and high-bandwidth memory demand. MKS Inc. rallied on robust earnings and reached the manager's target, prompting an exit at substantial profit. The manager sees this as a sustained upcycle tied to AI infrastructure buildout. |
Memory Semi Equipment HBM Foundries | |
GLP1CVS Health launched a comprehensive GLP-1 program in June 2026, combining lower-cost access, personalized pharmacist support, and tailored over-the-counter products to manage medication side effects. Investors broadly welcomed the strategy as a way to capture a meaningful share of the surging weight-loss market. |
Weight Loss Pharmacies Diabetes | |
Biopharma M&ALantheus Holdings advanced on intensified M&A interest via a potential $7 billion takeover bid from PE-backed Curium Pharma, cementing its radiopharmaceutical diagnostics leadership. The manager views consolidation in specialty pharma and diagnostics as a positive catalyst for portfolio holdings. |
Diagnostics Specialty Pharma Oncology | |
AirlinesAirlines gained on strong demand and fuel hedging, helped by lower oil prices following the U.S.-Iran interim deal. LATAM Airlines posted record net income, Ryanair carried 61 million guests and became debt-free, and International Airlines Group's operating profit increased year-on-year. The manager sees structural strength in global air travel demand. |
Air Travel Fuel Hedging Travel | |
ValueThe manager explicitly states that recent market concentration has left many fundamentally sound, cash-generative businesses at more attractive valuations, creating dislocations across sectors and regions. The case for value and international equities is described as increasingly compelling, with non-U.S. markets offering situations where prices diverge meaningfully from underlying fundamentals. |
Valuation International Dislocations | |
ChinaChina was the largest detractor from performance, mainly due to investments in Alibaba Group Holding and Ping An Insurance Group. Alibaba faced multiple headwinds including a U.S. military blacklist designation, concerns over its $1.5 billion Pupu bid deepening exposure to low-margin segments, and distillation allegations that could invite U.S. technology sanctions. AIA Group was hampered by tighter scrutiny from Beijing on cross-border capital flows. |
Regulation Sanctions E-commerce | |
OilBrent crude traded near $100 per barrel through the spring as the Strait of Hormuz was partly closed by the Iran conflict, then eased by June as the U.S. and Iran agreed to interim shipping-lane terms. Despite the supportive oil backdrop, ENI and TotalEnergies finished lower as investors focused on softer forward price expectations, lingering geopolitical and regulatory risks, and profit-taking after strong prior-period gains. |
Geopolitics Iran Energy | |
| 2026 Q1 |
OilThe closure of the Strait of Hormuz sent energy prices sharply higher, creating a decisive market turn in March. Energy stocks were among the best contributors with ENI, Marathon Petroleum, and TotalEnergies advancing strongly as markets repriced energy businesses in response to surging oil prices. |
Energy Oil Prices Geopolitical Supply Disruption Strait of Hormuz |
SemiconductorsThe AI boom created genuine shortages in advanced computer chips and memory. SK hynix controls 57%+ of the high bandwidth memory market with entire 2026 HBM production sold out. Samsung confirmed next-generation HBM4 chips on track for NVIDIA delivery in early 2026. |
AI Memory HBM Chip Shortage NVIDIA | |
FertilizersThe Strait of Hormuz closure disrupted roughly 30% of the world's nitrogen supply, a key fertilizer ingredient, sending prices higher. Norwegian fertilizer producer Yara International was largely insulated from disruption and picked up market share from competitors who couldn't deliver. |
Nitrogen Supply Disruption Agriculture Commodity Prices Market Share | |
| 2025 Q4 |
ValueFund focuses on buying shares in decent operating businesses at significant discounts to intrinsic value. European value stocks had their largest outperformance versus growth stocks in 30 years, beating them by 19 percentage points. Manager believes value will continue to outperform growth during the remainder of this decade. |
Value Investing Discount Intrinsic Value P/E Ratios Deep Value |
InsuranceVienna Insurance Group was the best performing stock, generating 158% return in USD. NN Group generated 85% return despite trading at discount to book value. Both companies demonstrate strong capital allocation and market leadership positions in their respective regions. |
Life Insurance P&C Insurance Central Europe Capital Allocation Book Value | |
ShippingFund exited car carrier operating companies after generating exceptional 110% IRR over five years. Maintains exposure through Wilh. Wilhelmsen Holding at 48% discount to NAV. Expects charter rates and vessel values to decline as new supply enters market. |
Car Carriers Shipping Cycles Asset Values Charter Rates Maritime | |
BiotechnologyNew investment in RTW Biotech based on belief that gene splicing and editing will be the next big thing. Fund bought shares at 23% discount to NAV. Investment has appreciated over 69% and manager expects to hold for many years and make multiple of original investment. |
Gene Editing Biotech Funds China Innovation M&A Activity Patent Cliff | |
SteelDanieli specializes in manufacturing steel plants and producing specialist steels. European Commission proposals to safeguard European steel production led to surge in demand for energy efficient and hydrogen-ready steel plants. Company has elevated order book and increasing profitability. |
Steel Plants Carbon Costs Energy Efficiency Hydrogen Ready Order Book | |
FertilizersYara International increased EPS from $1.75 to around $4.25 estimated for 2025. Manager expects Yara to surpass analysts' earnings expectations due to tight new supply and Carbon Border Adjustment Mechanism in EU. Well-managed business owned for over 20 years. |
Nitrogen CBAM Supply Constraints EU Regulation Earnings Growth | |
| 2025 Q3 |
AIThe current two-speed economy is characterized by a narrow AI-driven boom versus subdued growth across most other industries. Just seven mega-cap U.S. tech stocks drove nearly 60% of the S&P 500 gains in 2025 to date. The frothy valuations in the AI tech sector should make investors cautious, as concentrated indices could face material correction if the AI boom busts. |
Data Centers Semiconductors Cloud Technology Valuations |
Semiconductor CycleSamsung Electronics made solid progress in HBM4 with improving yield, while its HBM3 cleared Nvidia's performance benchmarks. The NAND market began showing strength in demand and pricing. SK Hynix finished mass production preparations for HBM4, expected to improve AI service performance by up to 69%. |
Memory HBM NAND Foundries AI | |
Trade PolicyThe tariff fallout is impacting the heavy-duty truck market, with new 25% heavy truck tariff effective October 1 impacting approximately 70% of Allison Transmission's revenue. New duties on steel and aluminum imports from Mexico may also impact topline growth for companies like Daimler Truck. |
Tariffs Trade Automotive Steel Aluminum | |
PharmaceuticalsHealth care was the best performing sector, with United Therapeutics' positive late-stage clinical trial results for Tyvaso in treating idiopathic pulmonary fibrosis potentially contributing an additional $4-5 billion in peak sales. AbbVie reaffirmed expectations for high single-digit revenue growth through 2029, led by flagship autoimmune drugs projected to exceed $31 billion in sales by 2027. |
Biotechnology Clinical Trials Rare Diseases Immunology Drug Development | |
FinancialsFinancials present an attractive case, with stable net interest margins and loan growth supporting earnings, even as credit and real estate risks linger. The Carlyle Group outpaced private equity peers, better able to capitalize on a lower interest rate outlook. Japanese financial institutions benefited from supportive interest rate environment and strong fee income. |
Banks Private Equity Interest Rates Credit Japan | |
Energy TransitionUtilities represent a defensive play, bolstered by the structural energy needs of AI data centers, offering stable growth in uncertain times. NextEra topped utilities, premised on the need for clean energy to power AI data centers, with interest rate cuts potentially lowering the cost of financing on NextEra's latest projects. |
Data Centers Clean Energy Utilities Infrastructure Power | |
| 2025 Q2 |
SemiconductorsSK Hynix led portfolio performance capitalizing on leadership in high-bandwidth memory chips and disciplined DRAM supply with record-breaking first-quarter results. Samsung Electronics also benefited from DRAM price strength and HBM3E supply to non-Nvidia customers. The sector showed strong fundamentals supported by AI and advanced packaging demand. |
Memory DRAM AI Semiconductors HBM |
AirlinesInternational airlines capitalized on travel trends away from the U.S. International Consolidated Airlines Group posted strong first quarter revenues and operating profits with cost efficiencies and lower fuel prices. LATAM Airlines reported record first-quarter profits driven by strong demand and disciplined cost management. |
Air Travel Airlines Travel International Recovery | |
FinancialsThe top-weighted financial sector benefitted from geographically-diverse holdings. Shinhan Financial rose over 40% following strong quarterly results with rising net income. U.S. companies Capital One and JPMorgan improved on stabilizing inflation data and favorable stress test results. |
Banks Financials Interest Rates Stress Tests ROE | |
MaterialsDe-escalation of U.S.-Chinese tariffs boosted confidence in cyclical materials sector sensitive to global trade. Lundin Mining had robust results attributable to firm copper and gold prices with commitment to production expansion. Yara International cited favorable supply-demand metrics boosting fertilizer prices. |
Copper Materials Trade Fertilizers Cyclical | |
Trade PolicyDe-escalation of tariffs between U.S. and China served as primary catalyst for market gains. Progress in U.S.-European Union trade talks reduced recession concerns. The portfolio positioning reflects expectations of continued trade normalization benefiting cyclical sectors. |
Tariffs Trade China Geopolitical Policy | |
| 2025 Q1 |
Trade PolicyThe Trump Administration has initiated far-reaching changes to reset decades of global trade agreements. Tariffs came to the forefront of every discussion in global markets, with broader-than-expected tariffs causing market volatility. By disrupting natural trade flows, tariffs can lead to reduced economic efficiency and slower global growth. |
Tariffs Trade USMCA Comparative Advantage Economic Efficiency |
AIThe DeepSeek announcement from China led investors to question Silicon Valley hype that U.S. tech giants dominate artificial intelligence. This caused unexpected market decline among the Magnificent 7 names. Investor appetite shifted from U.S. dominant large-cap tech names to a broader set of global IT companies at more attractive valuations. |
DeepSeek Magnificent 7 Tech Giants Valuations Global IT | |
EnergyAll energy sector holdings gained for the quarter. ENI SpA fired on all cylinders with solid upstream growth and increased shareholder returns, while also hosting a tour of Commonwealth Fusion Systems facility building the SPARC tokamak fusion energy machine. TotalEnergies highlighted resilient global energy demand as the shift to renewables is balanced by legacy energy sources. |
Fusion Energy Upstream Renewables Energy Demand Shareholder Returns | |
FinancialsFour of the top 10 portfolio contributors hailed from the financial sector, led by DNB Bank which rose over 30% after stellar quarterly earnings. European financials like Hannover Re and Munich Re focused on expansion and improved profitability. Conversely, U.S. financials were reeling over sticky inflation, tariffs and slowing GDP growth drawing recession concerns. |
European Financials Reinsurance Interest Rates Inflation Banking | |
| 2024 Q4 |
ValuePortfolio positioned as value-oriented with strong current earnings and cash flows, expected to benefit from higher-for-longer interest rates. Manager continues to find and add attractively priced companies to supplement compelling valuation profile. |
Value Earnings Valuation |
FinancialsU.S. financials anticipated more friendly, less regulatory burdensome operating environment under new administration. Higher-for-longer interest rate environment and improved economic growth outlook spurred banks during quarter with all U.S. regional and commercial banks posting positive gains. |
Banks Regional Banks Interest Rates | |
GeopoliticalQuarter marked by substantial geopolitical tensions in France, South Korea and other global economies, along with protracted Ukraine-Russia and Israel-Hamas conflicts. Biggest difficulty for global growth is geopolitical uncertainty with new U.S. administration pushing for tariffs. |
Geopolitical Tariffs Political Risk | |
| 2024 Q3 |
RatesInterest rates finally peaked with most central banks globally initiating an easing cycle. The era of 0% interest and free money has ended, with rates expected to remain higher than the prior cycle. This normalized rate environment makes current earnings and dividend payments more valuable while future earnings projections become less so. |
Interest Rates Central Banks Fed Monetary Policy Cost of Capital |
ValueThe normalized rate environment bodes well for value stocks as investors turn attention to fundamentally-strong, profitable companies that often trade at a discount to intrinsic worth. It now matters what you pay for things with more appropriately priced cost of capital. |
Value Stocks Fundamentals Discount Intrinsic Worth Profitable | |
FinancialsFinancials shined on expectations for loan demand and cheaper cost of capital with all sector holdings in absolute positive territory. Banks reported higher net interest margins and enhanced shareholder return policies including dividends and share buybacks. |
Banks Net Interest Margins Loan Demand Shareholder Returns Buybacks | |
BiotechnologyU.S. biopharma/biotech companies topped the health care sector with majority of holdings posting returns in excess of 10%. Key developments included FDA approvals for new treatments and positive trial results for HIV drugs that could be game changers. |
Biopharma FDA Approvals Clinical Trials Drug Development Healthcare | |
AIInvestor enthusiasm around AI cooled as questions swirled about massive capital expenditures in AI and return on investment. South Korean chip companies sunk as industry sentiment was hampered by concerns about margins, growth rates, and an AI slowdown narrative. |
Artificial Intelligence Capital Expenditures Semiconductors Technology Investment Returns | |
| 2024 Q2 |
CopperCopper prices increased over 20% from mid-February to late May due to tight supply and high demand from energy transition applications like electric vehicles and AI automation. Lundin Mining and Antofagasta benefited from this copper price momentum. |
Copper Energy Transition Electric Vehicles AI Mining |
AIAI momentum drove significant gains across multiple sectors. Microsoft capitalized on AI upswing with its Copilot chatbot program, SK Hynix dominated high-bandwidth memory for NVIDIA, and data centers demanded clean energy sources for AI applications. |
AI Data Centers Cloud Semiconductors Technology | |
Energy TransitionNextEra Energy benefited from high demand for renewable energy generation as data centers seek clean energy sources. Williams Companies referenced large data centers, AI and electric vehicles as drivers for unprecedented natural gas demand. |
Renewable Energy Data Centers Clean Energy Natural Gas Electric Vehicles | |
BuybacksMultiple companies announced shareholder return programs including Greencore Group's $63 million program with $38 million buyback starting immediately, and LG Electronics announcing a shareholder-friendly buyback plan. |
Share Buybacks Capital Return Shareholder Returns | |
| 2024 Q1 |
AIAI was a driving force behind divergent results for portfolio holdings. Publicis Groupe advanced after announcing a strategy to become the industry's first AI-powered Intelligent System. Teleperformance declined on concerns that generative AI will disrupt their call center business. Microsoft continues to benefit from AI demand despite no longer being the cheapest stock in the portfolio. |
Artificial Intelligence Generative AI AI Disruption AI Strategy AI Demand |
CopperThe electrification of everything and resurgent Chinese economy drove copper demand, while supply constraints from declining production rates at productive mines and political disruptions created tight market conditions. This benefited pure copper players like Lundin Mining and Antofagasta PLC, both jumping over 20% for the quarter. |
Electrification Supply Constraints Mining Production Chinese Demand Copper Prices | |
SemiconductorsPortfolio holdings SK Hynix, Samsung Electronics and MKS Instruments are positioned as AI derivatives, capitalizing on the semiconductor space without high price tags. These companies operate in the fiercely competitive environment among semiconductor chip suppliers and chip component manufacturers. |
Chip Suppliers AI Derivatives Semiconductor Competition Chip Components Memory | |
RatesCentral banks wrestled with rate cut decisions while inflation drivers remain in play. The Fed and other central banks are expected to begin lowering rates in small increments in 2024, but not returning to artificially low rates. Rate adjustments will be a determining factor in driving equity returns, with specific parts of the investment spectrum showing more promise. |
Central Banks Rate Cuts Inflation Monetary Policy Interest Rates | |
| 2023 Q4 |
FinancialsBanking sector outperformed after Fed shifted narrative from rate increases to possible declines in 2024. Thirteen financial holdings recorded gains exceeding 15%, including U.S. banks and German reinsurers benefiting from hard market pricing and better investment returns. |
Banks Reinsurance Interest Rates Regional Banks Insurance |
AIInstead of investing in expensive AI players, the fund invested in value derivatives serving the AI market. Memory chip makers like SK Hynix benefited from AI demand for high bandwidth memory chips, with SK Hynix holding almost 100% market share. |
Memory Semiconductors High Bandwidth Memory DRAM | |
ValueThe fund expects the gale force headwind of growth over value stocks to shift, particularly as more appropriately priced cost of capital benefits value stocks. International markets have already changed direction favoring value. |
Growth vs Value Cost of Capital International Markets Valuations |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| TICKER | COMMENTARY |
|---|---|
| 000660.KS | SK hynix sold out its 2026 HBM capacity and joined the $1 trillion market-cap club; in June its shares surged after announcing plans to issue 17.79 million new Nasdaq ADRs, raising about $28–29 billion for expansion. |
| MKSI | MKS Inc. rallied on robust earnings and a pre-announced second-quarter beat, reaching our target and prompting an exit at a substantial profit. |
| ARW | Arrow Electronics also benefited, both posting strong results; Arrow authorized a $1 billion buyback. |
| ADBE | We added Adobe Inc., trading well below its 2021 peak, given its 'sticky' professional user base and well-received Firefly integration into Photoshop and Illustrator. |
| 4901.T | Fujifilm Holdings Corp. was another value opportunity, with the market underpricing its contract drug-manufacturing and semiconductor-materials businesses relative to its stable healthcare and imaging cash flows. |
| 8591.T | Orix Corp. continued to deliver under its new CEO, selling Orix Bank to Daiwa Securities for ~$2.3 billion, funding a buyback and raising FY2027 profit guidance. It also generated gains via its OQCI Fund, along with a boost from its holding in Toshiba, which itself booked large gains selling down its stake in chipmaker Kioxia. |
| BPOP | Popular Inc. rose on higher earnings expectations and a more supportive local rate outlook, confident that an eventual easing in U.S./Puerto Rico rates would lower funding costs. |
| 1299.HK | AIA Group was hampered by tighter scrutiny from Beijing on cross-border capital flows, including limits on mainland-customer account openings in Hong Kong. |
| UCG.MI | UniCredit SpA was purchased, as we deemed it a strong Italian franchise with pan-European prospects after it acquired a stake in Commerzbank and launched an unsolicited ~$41 billion all-share takeover bid of the same. |
| LNTH | Lantheus Holdings Inc. advanced on multiple fronts — strong quarterly earnings, the FDA approval of PYLARIFY TruVu cementing its radiopharmaceutical diagnostics leadership, and intensified M&A interest via a potential $7 billion takeover bid from PE-backed Curium Pharma. |
| CVS | CVS Health Corp. launched a comprehensive GLP-1 program in June 2026, combining lower-cost access, personalized pharmacist support, and tailored over-the-counter products to manage medication side effects. Investors broadly welcomed the strategy as a way to capture a meaningful share of the surging weight-loss market. |
| JAZZ | Jazz Pharmaceuticals delivered strong topline growth, led by Zepzelca, and secured FDA priority review for Ziihera. |
| CYTK | We added Cytokinetics to our portfolio, a U.S. biopharma company with FDA approval for Myqorzo for hypertrophic cardiomyopathy; Myqorzo is seen as superior to Bristol Myers Squibb's Camzyos, offering better symptom relief with simpler dosing. |
| RYA.I | Ryanair carried 61 million guests for the quarter, hit record June traffic, became debt-free and aimed to undercut competitors on price. |
| DHL.DE | DHL Group surprised positively with resilient express air-freight performance and cost savings. |
| 8002.T | Marubeni Corp., a perennially strong Japanese trading house, lagged after weak guidance and rising costs, with pressure continuing on concerns over chemical-product shortages and cash-flow risk from its growth plans. |
| 9984.T | Alibaba Group Holding faced multiple headwinds, including a U.S. military blacklist designation, concern that its $1.5 billion bid for grocery-delivery firm Pupu would deepen exposure to low-margin price-war segments, and distillation allegations from Anthropic that could invite U.S. technology sanctions. |
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