Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The manager views the current market as exhibiting clear bubble characteristics driven by AI speculation, despite the S&P 500's strong performance of over 17% in 2025. While acknowledging genuine technological innovation underlying the AI boom, the manager highlights concerning dynamics such as OpenAI's $1.4 trillion computing commitment against uncertain monetization prospects. The investment thesis centers on avoiding direct AI investments in favor of picks and shovels companies that service the AI ecosystem. Drawing parallels to the California Gold Rush, the manager notes that service providers historically outperformed gold miners themselves. The strategy focuses on durable, cash-generative businesses positioned to endure any outcome. Key risks include speculative excess and massive capital commitments with uncertain returns, while potential catalysts include evolution of freemium models into robust revenue streams. The manager suggests this cycle may not end violently like the dotcom bust, as many AI companies have strong underlying businesses and significant cash reserves to weather potential corrections.
In the current AI-driven market bubble, investors should avoid direct AI investments and instead focus on picks and shovels companies that provide essential services to the AI ecosystem, as these businesses offer more durable revenue streams and lower risk.
The manager suggests this cycle doesn't have to end violently, as many lead actors in the AI race have great businesses and significant cash even if AI doesn't work out. The outlook emphasizes that companies will inevitably overspend, but stock prices may converge to reality without the violence of the dotcom bust.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 11 2026 | 2025 Q4 | LEVI, WFC | AI, Bubble, Gold Rush, infrastructure, Investment Strategy, Speculation, technology | - | The AI-driven expansion rests on genuine technological innovation with capacity to deliver meaningful productivity gains. OpenAI reports one-tenth of world's population uses ChatGPT with potential… |
| Oct 12 2025 | 2025 Q3 | - | active management, AI, growth, Migration Effect, small caps | - | Richie Capital examines the migration effect, showing that small caps outperform when a select few evolve into mid- and large-cap leaders. The firm argues that… |
| Jul 13 2025 | 2025 Q2 | - | Debt, fiscalpolicy, interestRates, Macro, risk | - | The letter highlights rising government debt and interest costs as a structural macro risk. Persistent deficits may pressure interest rates and asset valuations over time.… |
| Apr 13 2025 | 2025 Q1 | - | - | - | - |
| Jan 12 2025 | 2024 Q4 | - | - | - | - |
| Oct 13 2024 | 2024 Q3 | - | - | - | - |
| Jul 7 2024 | 2024 Q2 | - | - | - | - |
| Apr 7 2024 | 2024 Q1 | - | - | - | - |
| Sep 4 2023 | 2023 Q1 | AMT, ATEN, FIX, MSCI, PERI | - | - | - |
| Jan 3 2023 | 2022 Q4 | FICO, PERI, RELL | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
| 2025 Q2 |
Debt |
|
Macro |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| LEVI | Levi Strauss arrived in San Francisco in 1853 to open a wholesale dry goods business, selling clothing, bedding, combs, wallets, and tents to the miners. Much later, he partnered with Jacob Davis, a tailor, to create durable work pants reinforced with copper rivets at points of strain (like the pockets). These were the world's first blue jeans, which became a staple for workers and a globally recognized brand later expanded into brands such as Dockers and Denizen. |
| WFC | and money center banks Citigroup and Wells Fargo, all following strong performance |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||