| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Stocks staged a strong recovery in Q2 2026, with the S&P 500 gaining 15% and finishing near record highs despite a Middle East conflict and oil shock. Oil prices spiked to $115 in April before falling back to $70 by quarter-end following a ceasefire, driving inflation to a three-year high of 4.2% before the reversal. The Federal Reserve shifted from expected rate cuts to signaling potential rate hikes, though falling oil prices are expected to ease inflation pressure. AI investment fueled an 88% rally in semiconductor stocks, their strongest quarter in nearly 30 years, as five major tech companies are projected to spend $724 billion in 2026 and $900 billion in 2027 on AI infrastructure. Market leadership broadened beyond technology, with small-cap stocks gaining 21.5% as improving profit margins, economic resilience, and attractive valuations drove outperformance. The quarter demonstrated market resilience through significant volatility, with stocks moving past geopolitical and inflation concerns to reach new highs.
Q2 2026 demonstrated market resilience as stocks recovered strongly despite a Middle East conflict, oil shock, and inflation spike, with the S&P 500 gaining 15% and finishing near record highs as AI investment drove semiconductor stocks to historic gains and market leadership broadened beyond technology to include mid- and small-cap stocks.
The remainder of 2026 will be shaped by three key questions: whether inflation eases as oil prices have fallen, whether the AI buildout and stock gains can hold given high expectations, and whether market breadth continues to broaden beyond mega-cap tech. The market faced significant challenges in Q2 including war, energy shock, and three-year high inflation, yet stocks traded to new highs. A diversified portfolio and long-term perspective can help navigate periods of uncertainty.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 23 2026 | 2026 Q2 | AMZN, GOOG, META, MSFT, ORCL | AI, Federal Reserve, inflation, market breadth, oil, semiconductors, small caps, technology | - | Q2 2026 saw stocks rally 15% to record highs despite Middle East conflict and inflation spike. AI spending drove semiconductor stocks up 88% in their strongest quarter in 30 years, while market leadership broadened to small-caps gaining 21.5%. Oil reversed from $115 to $70 following ceasefire, expected to ease inflation. Market demonstrated resilience through significant volatility. |
| Apr 15 2026 | 2026 Q1 | - | AI, diversification, geopolitics, oil, rates, small caps, value | - | Q1 2026 saw oil prices surge 70% due to Middle East tensions, driving S&P 500 down 4.3% while diversified portfolios fared better. Market leadership rotated from mega-cap growth to value and small-caps. AI disruption fears hammered software stocks. Fed rate cut expectations evaporated. Fundamentals remain healthy despite geopolitical uncertainty. |
| Jan 9 2026 | 2025 Q4 | AGG, DIA, EEM, EFA, HYG, IWD, IWF, IWM, IWN, IWO, IWP, IWR, IWS, LQD, MUB, QQQ, SPY, XLB, XLC, XLE, XLF, XLI, XLK, XLP, XLRE, XLU, XLV, XLY | AI, Economic Data, Fed policy, Government Shutdown, Market Leadership | - | Markets delivered strong Q4 returns despite government shutdown data fog and Fed policy uncertainty. AI theme matured with increased selectivity while market leadership rotated toward value. The 2026 outlook faces higher bar given expensive valuations and elevated expectations, but tech innovation, corporate profits, and declining rates provide positive catalysts for disciplined long-term investors. |
| Jul 8 2025 | 2025 Q2 | ALV.DE, CS.PA, GEN.MI, KER.PA, SAP, ZURN.SW | insurance, liquidation, private equity, SME, software, Switzerland | - | MPD Partners operates a European small-cap private equity strategy through MPD SME Capital One. The fund's main asset is La Centrale de Prévoyance, a Swiss insurance broker facing broker turnover challenges. The firm is developing proprietary lead generation software using machine learning. Operations remain constrained by limited funding for portfolio development initiatives. |
| Apr 7 2025 | 2025 Q1 | BRK-B | AI, Caribbean, diversification, emerging markets, global, rates, technology, value | - | Fortress delivered strong Q3 returns while warning against expensive U.S. tech stocks driven by AI hype. The manager favors global diversification in quality companies at reasonable valuations over chasing recent winners. Emerging markets led performance while Caribbean holdings lagged. Despite market highs, they see excellent prospects in their globally diversified portfolio focused on value opportunities worldwide. |
| Jan 1 2025 | 2024 Q4 | AMD, ARM, ASML, AVGO, BABA, BIDU, GOOGL, META, MSFT, NVDA, ORCL, PLTR, SNOW, TSM | AI, China, Cloud, growth, semiconductors, technology |
AMD SNOW BABA BIDU |
WestEnd Capital maintains concentrated Technology exposure as the key return driver while adding AI catch-up trades in AMD, Alibaba, and Baidu. The firm delivered positive Q3 performance despite underperforming the S&P 500, remaining roughly in line for the year. Portfolio positioning emphasizes durable growth themes including AI infrastructure, international diversification, and structural growth across industrials and defense. |
| Oct 1 2024 | 2024 Q3 | ADYEN.AS, BA, GE, HWM, RHM.DE, ROK, RR.L | aerospace, Automation, defense, Europe, industrials, Onshoring, technology, Trade Policy |
BA HWM ROK GE |
WestEnd outperformed significantly in Q2 through concentrated bets on aerospace and industrials, capitalizing on onshoring trends and defense spending growth. The fund redeployed cash aggressively during the tariff de-escalation rally, building positions in Boeing's turnaround story and complementary suppliers like Howmet and Rockwell Automation positioned for structural manufacturing tailwinds. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
OilOil prices spiked to $115 in early April due to Middle East conflict closing the Strait of Hormuz, then reversed to $70 by quarter-end following a ceasefire. The energy shock drove inflation to a three-year high of 4.2% year-over-year in May, with over half the monthly increase tied to energy. The oil price reversal is expected to ease inflation in coming months. |
Energy Inflation Middle East Commodities |
AIAI investment drove semiconductor stocks to their strongest quarter in nearly 30 years, gaining 88%. Five major tech companies (Microsoft, Amazon, Meta, Alphabet, Oracle) are projected to spend $724 billion in 2026 and $900 billion in 2027 on AI infrastructure including data centers and chips. The spending wave is reshaping financial markets with major IPOs and debt issuances to fund the buildout. |
Semiconductors Data Centers Technology Capital Expenditures | |
RatesThe Federal Reserve shifted from expected rate cuts to signaling potential rate hikes during Q2 as inflation reached a three-year high. The market swung from pricing in 2-3 rate cuts to pricing in a rate hike this fall. With oil prices now back to pre-conflict levels, inflation is expected to ease, which could reduce pressure on the Fed to raise rates. |
Federal Reserve Inflation Monetary Policy | |
Small CapsSmall-cap stocks outperformed in Q2, with the Russell 2000 gaining 21.5% and up 22.6% year-to-date. Smaller companies benefited from improving profit margins as Fed rate cuts reduced their floating-rate debt costs, economic resilience, and attractive valuations relative to mega-cap tech stocks. Market leadership broadened beyond technology to include mid- and small-cap stocks. |
Russell 2000 Valuations Market Breadth | |
SemiconductorsThe semiconductor index returned 88% in Q2, the strongest quarter in nearly 30 years, driven by massive AI infrastructure spending. Chipmakers are reporting record earnings and growing backlogs, with companies stating they are limited more by build capacity than demand. The rally is anchored to a wave of technology investment flowing to chipmakers. |
Technology AI Capital Expenditures | |
InflationInflation rose to 4.2% year-over-year in May, the highest in three years, with over half the monthly increase tied to energy prices. Excluding energy, underlying inflation was 2.9%, indicating the spike was driven by oil rather than broad price pressures. With oil prices falling back to pre-conflict levels, inflation is expected to ease in coming months. |
Energy Federal Reserve Oil | |
| 2026 Q1 |
OilOil prices rose over 70% in Q1 due to geopolitical tensions and the closure of the Strait of Hormuz, reaching levels not seen since mid-2022. The surge in oil prices has significant implications for inflation and Federal Reserve policy, with energy costs feeding into consumer and business prices. |
Energy Geopolitics Inflation Commodities Supply |
AIAI has shifted from being viewed as a productivity tool to a potential replacement for entire categories of professional services. This change in perception has led to significant selling pressure in the software industry, which has declined nearly 30% from its peak, representing one of the largest non-recessionary drawdowns in over 30 years. |
Technology Software Disruption Professional Services Productivity | |
RatesFederal Reserve rate cut expectations shifted dramatically during the quarter, moving from expectations of 2-3 cuts to completely pricing out rate cuts by quarter-end. The 10-year Treasury yield ended near 4.32%, the highest since June 2025, with the possibility of rate hikes being discussed as oil prices spiked. |
Federal Reserve Monetary Policy Treasury Inflation Policy | |
ValueValue stocks significantly outperformed growth stocks during the quarter, with Value gaining 2.1% while Growth declined nearly 10%. Value outperformed Growth in each month of the quarter, showing a level of consistency that is notable regardless of market environment. |
Style Outperformance Rotation Consistency Leadership | |
Small CapsSmall-cap stocks held up better than large-caps during the volatile quarter, with the Russell 2000 gaining nearly 1% while the S&P 500 declined 4.3%. The equal-weight S&P 500 also outperformed, indicating that smaller companies broadly outperformed in Q1. |
Size Outperformance Diversification Leadership Rotation | |
| 2025 Q4 |
Industrial GasesSOL Group operates one of Europe's leading industrial gas franchises serving 50k customers across 32 countries, with a network of 39 air-separation units and 50+ filling plants that took almost a century to assemble. The business benefits from high switching costs, regulatory barriers, and local oligopoly dynamics where gases are expensive to transport long distances. |
Industrial Gases Infrastructure Oligopoly Barriers |
AIManager maintains cautious stance on AI's impact on software businesses, preferring companies with high barriers to entry that are unlikely to see their unit economics negatively affected by AI over the next decades. The strategy tilts toward infrastructure and business services players that won't be disrupted by AI. |
AI Software Disruption Infrastructure | |
HealthcareVivisol represents the largest home respiratory care provider in Italy, Belgium, and Netherlands serving 750k patients with 13% compound annual growth over fourteen years. The business benefits from Europe's aging demographics and healthcare systems moving chronic care from hospitals to patients' homes. |
Healthcare Demographics Home Care Respiratory | |
| 2025 Q2 |
InsuranceThe fund's main portfolio company La Centrale de Prévoyance is a Swiss insurance broker operating in social security and healthcare insurance. The company maintains partnerships with major insurers including Groupe Mutuel, Generali, Allianz, and Axa, though it faces challenges with broker turnover requiring recruitment efforts to maintain regulatory authorization. |
Insurance Brokerage Healthcare Switzerland FINMA |
SoftwareMSCO is developing proprietary lead generation software using big data analytics and machine learning algorithms to enhance marketing and sales outcomes for portfolio companies. The software is being tested with LCP and will serve as a foundation for implementation across other invested companies. |
Software Analytics Machine Learning Lead Generation Digital | |
| 2025 Q1 |
AIArtificial intelligence remained the dominant theme supporting global stocks this quarter, with renewed frenzy in technology shares from the AI buildout bringing excitement and higher valuations. AI fueled momentum in shares of companies linked to artificial intelligence, though valuations have reached concerning levels. |
Technology Valuations Momentum Growth |
Emerging marketsEmerging markets stocks posted the strongest returns this quarter, with constructive trade talks, good valuations and government shift to supporting private enterprise lifting Chinese stocks. The Fund's core allocation to emerging equities via the Fortress Emerging Markets Fund led the way with returns between 4% and 15%. |
China Trade Valuations Government | |
ValueThe manager favors investing in shares of high-quality, profitable companies at reasonable valuations, believing valuations matter as the launching point for future returns. Years of weakness in Caribbean markets have set the stage for good long-term returns among profitable companies now trading at very attractive valuations. |
Quality Profitable Reasonable Long-term | |
| 2024 Q4 |
AIWestEnd maintains concentrated exposure to AI infrastructure through both established leaders and catch-up trades. The firm holds long-term positions in Palantir and Snowflake while adding new positions in AMD, Alibaba, and Baidu to capture different fronts of the AI arms race. These companies are positioned to benefit from enterprise AI adoption and global AI infrastructure buildout. |
Infrastructure Enterprise Data Centers Cloud Semiconductors |
SemiconductorsThe portfolio includes strategic semiconductor exposure through AMD, which is positioned as a catch-up trade to NVIDIA in AI chips. AMD has achieved technological credibility to compete head-to-head with NVIDIA for major infrastructure contracts, with partnerships including OpenAI and Oracle representing potential tens of billions in long-term revenue. |
AI Chips Data Centers Infrastructure Competition | |
ChinaWestEnd has opened positions in Chinese tech leaders Alibaba and Baidu as AI catch-up trades. Alibaba announced a $50 billion AI initiative and reported 26% cloud growth, while Baidu operates fully driverless taxis and has completed over nine million paid rides through its Apollo Go platform. |
Technology Cloud Autonomous E-commerce | |
| 2024 Q3 |
OnshoringThe manager emphasizes the US government's increasing focus on bringing manufacturing and production home due to geopolitical uncertainties and trade issues. This trend is driving major capital investment across aerospace and defense industries with strong earnings growth expected to follow. |
Manufacturing Domestic Supply Chain Reshoring Production |
Defense SpendingGlobal defense spending rose to $2.7 trillion in 2024 (+9.4%) and is expected to continue rising. The US Department of Defense's 2025 budget request totals nearly $850 billion with meaningful allocations for strengthening industrial capabilities in unmanned systems, hypersonics, and solid rocket motors. |
Military Budget Aerospace Defense Government | |
AerospaceThe rebound in global air travel (up nearly 10.6% in 2024) and structural supply shortages are fueling commercial aerospace activity. Aircraft manufacturers and suppliers are racing to meet backlogs while investing heavily in domestic production capacity. |
Aviation Commercial Aircraft Travel Manufacturing | |
Trade PolicyThe letter discusses the de-escalation of US-China trade tensions with tariffs pulled back from 100%+ to more sensible levels (30% on Chinese exports, 10% on US exports). Markets have moved past worst-case tariff scenarios, accepting higher but manageable effective tariff rates. |
Tariffs China Negotiations Trade Policy | |
AutomationThe manager highlights investment in companies like Rockwell Automation that benefit from reshoring trends and broader adoption of automation and AI in manufacturing. These technologies help make domestic manufacturing more efficient and cost-effective. |
AI Manufacturing Industrial Technology Efficiency |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 22, 2025 | Fund Letters | QuadCap wealth management | BABA | Alibaba Group Holding Limited | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NYSE | AI infrastructure, Asia, China, Cloud computing, Digital transformation, e-commerce, technology platform | Login |
| Oct 22, 2025 | Fund Letters | QuadCap wealth management | BIDU | Baidu, Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI innovation, autonomous vehicles, China, Enterprise software, Language Models, Mobility Services, technology platform | Login |
| Oct 22, 2025 | Fund Letters | QuadCap wealth management | AMD | Advanced Micro Devices | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI infrastructure, Cloud computing, CPU, data center, Gpu, semiconductors, technology hardware | Login |
| Oct 22, 2025 | Fund Letters | QuadCap wealth management | SNOW | Snowflake Inc. | Information Technology | Software | Bull | NYSE | AI platform, Cloud computing, Data Analytics, Data Management, Enterprise software, Multi Cloud, SaaS | Login |
| Jul 1, 2024 | Fund Letters | QuadCap wealth management | GE | GE Aerospace | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Artificial Intelligence, Commercial Aviation, Defense, Engine Manufacturing, Joint venture, MRO services, Predictive Maintenance, Reshoring | Login |
| Jul 1, 2024 | Fund Letters | QuadCap wealth management | BA | Boeing Company | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, China, Commercial Aviation, Defense, manufacturing, Quality Improvement, Reshoring, turnaround | Login |
| Jul 1, 2024 | Fund Letters | QuadCap wealth management | HWM | Howmet Aerospace Inc | Industrials | Aerospace & Defense | Bull | NYSE | advanced materials, Aerospace, Commercial Aviation, Defense, manufacturing, Military Aircraft, Precision Engineering, supply chain | Login |
| Jul 1, 2024 | Fund Letters | QuadCap wealth management | ROK | Rockwell Automation Inc | Industrials | Industrial Machinery | Bull | NYSE | Artificial Intelligence, Defense, Digital Twins, Industrial automation, manufacturing, Predictive Maintenance, Reshoring, Sensors, Software | Login |
| TICKER | COMMENTARY |
|---|---|
| MSFT | The bottom chart graphs the combined capital spending of five of the largest tech companies building AI infrastructure: Microsoft, Amazon, Meta, Alphabet, and Oracle. The group spent a combined $32 billion in 2016. By 2025, that figure had grown to roughly $416 billion. The pace continues to climb: the five companies are projected to spend about $724 billion this year and nearly $900 billion next year. |
| AMZN | The bottom chart graphs the combined capital spending of five of the largest tech companies building AI infrastructure: Microsoft, Amazon, Meta, Alphabet, and Oracle. The group spent a combined $32 billion in 2016. By 2025, that figure had grown to roughly $416 billion. The pace continues to climb: the five companies are projected to spend about $724 billion this year and nearly $900 billion next year. |
| META | The bottom chart graphs the combined capital spending of five of the largest tech companies building AI infrastructure: Microsoft, Amazon, Meta, Alphabet, and Oracle. The group spent a combined $32 billion in 2016. By 2025, that figure had grown to roughly $416 billion. The pace continues to climb: the five companies are projected to spend about $724 billion this year and nearly $900 billion next year. |
| GOOG | The bottom chart graphs the combined capital spending of five of the largest tech companies building AI infrastructure: Microsoft, Amazon, Meta, Alphabet, and Oracle. The group spent a combined $32 billion in 2016. By 2025, that figure had grown to roughly $416 billion. The pace continues to climb: the five companies are projected to spend about $724 billion this year and nearly $900 billion next year. In the public market, companies such as Alphabet and Oracle are issuing both stock and bonds to fund their spending. |
| ORCL | The bottom chart graphs the combined capital spending of five of the largest tech companies building AI infrastructure: Microsoft, Amazon, Meta, Alphabet, and Oracle. The group spent a combined $32 billion in 2016. By 2025, that figure had grown to roughly $416 billion. The pace continues to climb: the five companies are projected to spend about $724 billion this year and nearly $900 billion next year. In the public market, companies such as Alphabet and Oracle are issuing both stock and bonds to fund their spending. |
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