| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | -19.8% | -19.8% |
Rowan Street declined 19.8% in Q1 2026 versus 4.3% for the S&P 500, reflecting their concentrated approach during a period of rising rates and AI disruption fears. The manager emphasizes that volatility is the price of admission for long-term investing, citing historical examples where their largest holdings experienced 30-80% drawdowns before delivering exceptional returns. Meta returned 1,300% since IPO despite multiple 50%+ declines, Tesla delivered 22,000% returns despite 70%+ drawdowns, and Shopify required three years of patience before generating meaningful returns. The portfolio companies are expected to grow revenues at 18% and earnings at 21% annually. During the quarter, they initiated Constellation Software and sold Spotify. The manager believes current valuations represent one of the most compelling opportunities since 2022, with businesses stronger than before but trading at significant discounts. They maintain high conviction in their concentrated approach and encourage existing partners to add capital at current levels.
Concentrated ownership of exceptional businesses that compound value over decades, with volatility as the price of admission for superior long-term returns.
Manager believes this represents one of the strongest and most focused portfolios since inception, with businesses stronger than in 2022. The gap between business value and market pricing is characterized as wide as it has been since that period. Tone is cautiously optimistic about long-term prospects despite near-term volatility.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 18 2026 | 2026 Q1 | CSU.TO, META, NFLX, SHOP.TO, TOI.TO, TSLA | Concentration, growth, long-term, technology, value, volatility |
META TSLA SHOP CSU.TO |
Rowan Street's concentrated portfolio declined 19.8% in Q1 amid rate and AI concerns, but the manager views this as typical volatility for exceptional businesses. Historical examples show their holdings delivered extraordinary long-term returns despite severe drawdowns. Current valuations are characterized as the most compelling since 2022, with portfolio companies expected to grow earnings 21% annually. |
| Feb 5 2026 | 2025 Q4 | META, SHOP.TO, SPOT, TSLA, TTD | Compounding, Concentration, long-term, Quality, technology | - | Rowan Street delivered +11.1% in 2025, underperforming the S&P 500 but maintaining exceptional three-year returns of +252% versus +78% for the index. The concentrated strategy focuses on long-term compounding through high-quality businesses like Tesla, Meta, and Shopify. Position sizing adjusts organically based on execution, allowing winners to compound while maintaining discipline through inevitable volatility periods. |
| Oct 24 2025 | 2025 Q3 | ADYEY, DNP.WA, META, NFLX, SHOP.TO, SPOT, TOI.TO, TSLA, TTD | AI, Compounding, conviction, Electric Vehicles, growth, innovation, long-term, technology |
TSLA SPOT TSLA SPOT |
Rowan Street delivered strong returns through disciplined long-term ownership of exceptional businesses. The major move was reallocating from Spotify to Tesla during market pessimism, with Tesla appreciating 76% since initiation. Tesla represents a rare combination of manufacturing excellence, AI leadership, and platform optionality across autonomous driving, robotics, and energy storage that could create massive long-term value. |
| Jul 11 2025 | 2025 Q2 | ADYEY, DNP.WA, META, NFLX, SHOP, SPOT, TOI.TO, TTD | Compounding, conviction, growth, long-term, Multi-bagger, technology |
META SPOT META SPOT |
Rowan Street's +20.1% YTD performance reflects their disciplined approach of holding exceptional businesses through volatility. Core positions like Meta and Spotify survived brutal 75%+ drawdowns before delivering 7-10x returns from lows. Their edge is behavioral - the temperament to stay convicted while others panic, letting time and compounding create wealth rather than chasing trends. |
| Apr 16 2025 | 2025 Q1 | ADYEY, BAC, BKNG, CMG, DKS, MCK, META, NVO, SHOP, SPOT, TSCO, TTD | Compounding, Discipline, growth, long-term, Patience, Quality, technology, value | - | Rowan Street Capital's 10-year journey demonstrates the power of patient, long-term investing in exceptional businesses. After surviving a brutal 2021-2022 period by maintaining conviction in quality holdings like Meta and Spotify, the fund delivered extraordinary recoveries with 102.6% returns in 2023 and 56.6% in 2024, validating their disciplined approach to compounding. |
| Jan 24 2025 | 2024 Q4 | META, NFLX, SHOP, SPOT, TOI.V, TTD | Concentration, growth, long-term, Quality, technology |
META SPOT TTD SHOP TOI.V |
Rowan Street's concentrated portfolio of founder-led technology companies delivered 56.6% net returns in 2024, driven by Meta, Spotify, theTradeDesk, Shopify, and Netflix. The fund has rebounded 217% since 2022 by maintaining disciplined focus on exceptional businesses with strong fundamentals and visionary leadership, expecting continued mid-teens growth across core holdings. |
| Oct 18 2024 | 2024 Q3 | - | Concentration, long-term, Quality, value | - | Rowan Street posted +12.8% in Q3 and +42.3% year-to-date, demonstrating the power of their concentrated 20-punchcard philosophy. The fund has evolved from 22 buy decisions in early years to just 2 in the past two years, reflecting extreme selectivity with 8 core positions designed for long-term compounding. |
| Sep 5 2024 | 2024 Q2 | META, NFLX, SHOP, SPOT, TOI.V, TTD | AI, Concentration, Digital Advertising, E-Commerce, growth, Long Term, Streaming, technology |
META SPOT TTD TOI.V SHOP |
Rowan Street delivered 26.2% net returns in H1 2024 through concentrated positions in technology leaders Meta, Spotify, and Trade Desk. The fund maintains its long-term approach of owning exceptional businesses with outstanding management teams. Portfolio companies are projected to grow revenues at 15% annually, significantly outpacing broader market expectations, positioning the fund for continued outperformance. |
| May 18 2024 | 2024 Q1 | ADYEY, BABA, CMG, META, SHOP, SPOT, TTD, UA | Concentration, growth, long-term, Recovery, technology, value |
CMG TTD |
Rowan Street gained 25.6% in Q1 2024, driven by concentrated positions in Meta, Spotify, Trade Desk and Shopify. After learning painful lessons about selling winners too early, the managers have dramatically reduced trading and now focus on letting exceptional businesses compound over time rather than active portfolio management. |
| Jan 24 2024 | 2023 Q4 | ADYEY, META, SHOP, SPOT, TOI.TO, TTD | Advertising, E-Commerce, growth, long-term, payments, Social Media, Streaming, technology | ADYEY | Rowan Street delivered 102.6% returns in 2023 by maintaining conviction in high-quality growth companies during 2022's market panic. Meta, Spotify, Trade Desk, and Shopify drove outperformance as the Fed pivot created favorable conditions for growth stocks. The fund added Adyen at attractive valuations, demonstrating their patient approach to investing in best-in-class businesses with long-term competitive advantages. |
| Oct 15 2023 | 2023 Q3 | META | - | - | |
| Dec 7 2023 | 2023 Q2 | CMG, NVO, TSCO | - | - | |
| Nov 4 2023 | 2023 Q1 | META, SPOT, TTD | - | - | |
| Jan 18 2023 | 2022 Q4 | COST, KO, PG | - | - | |
| Sep 11 2022 | 2022 Q3 | DOCU, SPOT | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
VolatilityManager emphasizes that volatility is the price of admission for long-term investing. Portfolio companies experienced significant drawdowns but this is characterized as normal for exceptional businesses. Historical examples show 30-80% declines are recurring features, not anomalies. |
Drawdowns Risk Patience Cycles |
AIGrowing market fears that AI may disrupt existing software businesses and render yesterday's winners obsolete overnight. Manager acknowledges these concerns while maintaining focus on long-term business fundamentals rather than short-term AI disruption narratives. |
Disruption Software Technology | |
| 2025 Q4 |
AIAI has been the defining theme of market leadership in 2025, driving data center capex and benefiting semis, electrical equipment, and tech hardware. The theme reasserted dominance after NVIDIA's strong earnings in late November, though concerns about durability caused temporary rotation. |
Data Centers Semiconductors Infrastructure |
ElectrificationPortfolio maintains largest absolute and relative exposure to Industrials sector representing conviction in the Electrification theme. Bloom Energy benefited from AI data center power demands, with fuel cells providing reliable onsite power generation. |
Power Generation Grid Infrastructure Energy Storage | |
BiotechnologyBiotech delivered its best quarter in five years driven by improving rate environment, easing regulation enabling more M&A, and excitement around AI's promise in drug discovery efficiency. Sector was a standout performer during the quarter. |
Drug Discovery M&A Regulation | |
SolarFirst Solar benefited from Trump Administration's 'One Big Beautiful Bill' driving US demand for non-China solar products. Company differentiates with thin-film CdTe technology offering better performance in hot/humid/low light conditions. |
Manufacturing Trade Policy Technology | |
SpaceRocket Lab operates as end-to-end space company in Launch Services and Space Systems segments. Stock gained nearly 50% on strong earnings and growing backlog, though late-quarter initiation meant it was a relative performance detractor. |
Launch Services Satellites Defense | |
| 2025 Q3 |
AITesla's Full Self-Driving system leverages billions of miles of real-world driving data to train neural networks, creating a compounding advantage that grows stronger every day. Tesla's proprietary AI stack powered by Dojo processes video data to handle unpredictable driving situations, learning in the real world rather than relying on synthetic data. The company has solved edge cases like driving in direct sunlight, fog, or at night using a direct photon count approach. |
Autonomous Driving Neural Networks Machine Learning Computer Vision Real-world Data |
Electric VehiclesTesla has evolved from a car company into a vertically integrated technology platform with manufacturing excellence and multiple self-reinforcing moats. The company's manufacturing advantage includes gigacasting, structural battery packs, and Dojo-in-the-loop optimization that competitors cannot replicate at scale. Tesla's cost structure and speed of innovation surpass traditional automakers who are still struggling with production challenges. |
Manufacturing Vertical Integration Battery Technology Production Scale Cost Efficiency | |
RoboticsTesla's Optimus humanoid robot represents a major expansion of the company's AI and manufacturing capabilities into new industries. Musk believes that approximately 80% of Tesla's value will come from Optimus robots and considers it potentially the biggest product of all time. The robotics platform leverages Tesla's existing AI infrastructure and manufacturing expertise. |
Humanoid Robots Manufacturing Automation AI Platform Industrial Applications Future Value | |
AutomationTesla's robotaxi network could transform vehicles from depreciating assets into income-producing ones by dramatically increasing utilization rates. A typical car is used only 10 hours per week, but autonomous vehicles could operate 50-60 hours weekly, delivering passengers by day and cargo by night. This represents potentially the largest asset value increase in human history according to Musk. |
Robotaxis Asset Utilization Autonomous Fleet Transportation Network Economic Transformation | |
Energy StorageTesla's energy storage business through Megapacks extends the company's platform into the global power grid, representing another layer of the expanding Tesla ecosystem. This diversification beyond automotive into energy infrastructure creates additional revenue streams and reinforces the company's position in the energy transition. |
Grid Storage Megapacks Energy Infrastructure Power Grid Energy Transition | |
| 2025 Q2 |
StreamingThe fund holds long-term positions in Netflix and Spotify, both delivering over 20% annual returns. Spotify particularly demonstrated the psychological challenges of multi-bagger investing, round-tripping to zero returns after five years before appreciating nearly 10x from 2022 lows. |
Netflix Spotify Content Subscription Digital |
Social MediaMeta Platforms represents one of their longest holdings at over 7 years with 20%+ annual returns. The position survived a 75% drawdown in 2022 when sentiment turned negative, subsequently appreciating over 7x from those lows to become a top contributor. |
Meta Platforms Advertising Digital Networks | |
E-commerceShopify has been held for over 3 years and compounded at over 22% annually. The Trade Desk, held for over 5 years, has delivered spectacular returns as part of the digital advertising ecosystem supporting e-commerce growth. |
Shopify Trade Desk Digital Commerce Advertising | |
| 2025 Q1 |
GrowthThe fund focuses on high-quality growth businesses that can compound capital at double-digit rates over the long run. They emphasize finding companies with expanding competitive moats, long growth runways, and the ability to reinvest capital at high rates of return. |
Compounding Long-term Quality Moats Reinvestment |
Social MediaMeta represents a core holding that was heavily punished during 2021-2022 but recovered strongly. The fund views Meta as having 3.7 billion users across platforms with powerful network effects, generating tens of billions in free cash flow despite market pessimism about metaverse investments. |
Meta Network Effects Platforms Users Cash Flow | |
StreamingSpotify is highlighted as a dominant audio platform with over 200 million paying subscribers and 500 million monthly users. The fund sees it as possessing powerful network effects in digital media with improving margins and a massive lead in audio advertising. |
Spotify Audio Subscribers Network Effects Advertising | |
E-commerceShopify is mentioned as a core holding that streamlined operations, cut costs, and returned to profitability. The fund views e-commerce platforms as having strong competitive advantages and long-term growth potential. |
Shopify Platforms Profitability Operations Growth | |
| 2024 Q4 |
AdvertisingMeta's advertising business continues to drive strong growth with advancements in AI, monetization of Reels, and expansion into business messaging. The company is expected to grow revenues, earnings, and free cash flow at mid-teens rates over the next two years. |
Digital Advertising AI Reels Business Messaging |
StreamingSpotify has achieved exceptional growth in users, revenues, and gross profits over the past six years. The company continues to demonstrate strong fundamental performance in the music streaming space with robust user acquisition and monetization. |
Music Streaming Monthly Active Users Content Subscription | |
E-commerceShopify is expected to grow revenues and gross profits at rates north of 20% annually over the next two years, with cash flow from operations projected to grow in the high 20s. The company has a massive opportunity in the e-commerce space despite lofty valuations. |
E-commerce Platform Merchant Solutions Online Commerce SaaS | |
| 2024 Q2 |
AIMeta's significant investment in artificial intelligence, particularly with the development of their Llama 3.1 model, with CEO Mark Zuckerberg envisioning Meta AI as potentially the most used AI assistant globally by year-end. AI integration has bolstered their advertising revenue and demonstrates effectiveness in optimizing their core business. The Trade Desk benefits from the shift towards data-driven advertising. |
Artificial Intelligence Machine Learning Data Analytics Advertising Technology Digital Transformation |
AdvertisingMeta's advertising revenue grew to $38.33 billion, demonstrating AI's effectiveness in optimizing their core business. The Trade Desk reported strong performance in the digital advertising ecosystem, particularly in Connected TV and retail media, driven by the shift towards data-driven advertising and growing adoption of their Unified ID 2.0 solution. |
Digital Advertising Connected TV Programmatic Ad Tech Retail Media | |
StreamingSpotify achieved record profitability with net income of €274 million and 20% year-over-year revenue increase. Premium subscribers grew 12% to 246 million, while monthly active users rose 14% to 626 million. The company's operating income surged to €266 million from a loss of €247 million in Q2 2023, reflecting focus on cost efficiency and monetization strategies. |
Music Streaming Subscription Audio Content Digital Media Content Monetization | |
E-commerceShopify's revenue increased 21% to $2.05 billion, surpassing forecasts, with gross merchandise volume rising 22% to $67.2 billion. The company reported significant rise in free cash flow and improved gross margins, aided by higher subscription prices. Shopify provided optimistic guidance for future revenue growth and margin expansion in the massive e-commerce market opportunity. |
Online Commerce Digital Payments Merchant Services SaaS Platform Economy | |
| 2024 Q1 |
GrowthThe fund focuses on high-growth technology companies that can compound returns over long periods. Their top holdings like Meta, Spotify, Trade Desk and Shopify represent growth companies that experienced significant volatility but demonstrated strong recovery potential. The managers emphasize finding exceptional growth companies at attractive prices and holding them for extended periods. |
Growth Technology Compounding Long-term Recovery |
QualityThe managers seek truly exceptional businesses with strong competitive moats and excellent management teams. They emphasize that companies like Trade Desk and Chipotle are rare, high-quality businesses that deserve premium valuations. The focus is on identifying businesses with robust models that can sustain growth over decades. |
Quality Moats Management Exceptional Sustainable | |
| 2023 Q4 |
PaymentsAdyen represents the best-run payments company globally with a unified platform offering end-to-end payment services. The company processes 910 billion euros in payment volume with 37% revenue CAGR over five years while maintaining 65% EBITDA margins. Their single integrated platform eliminates reliance on legacy partners and provides competitive advantages through high authorization rates and global reach. |
Fintech Digital Payments Platform Enterprise Global |
E-commerceShopify maintains commanding 10% market share in US e-commerce as an all-in-one platform empowering businesses to build and scale online stores. The company's flywheel creates merchant loyalty through solving problems as businesses grow. Revenue increased 25% year-over-year with gross profit growing 36% despite macroeconomic challenges. |
Platform Merchants Online Retail SaaS Growth | |
Social MediaMeta Platforms became the fund's largest position, gaining 268% in 14 months after experiencing significant volatility from 2018-2022. The investment demonstrates the importance of focusing on business fundamentals rather than stock narratives, with the company eventually rewarding patient investors despite years of negative returns. |
Platform Digital Advertising User Growth Monetization Volatility | |
StreamingSpotify was extremely mispriced at $15 billion market cap in 2022, now valued at $40 billion after 138% gains in 2023. The platform added 26% more monthly active users year-over-year reaching 489 million MAUs, solidifying its position as the world's leading music streaming platform while improving profitability through cost-cutting measures. |
Music Subscription User Growth Profitability Platform | |
AdvertisingThe Trade Desk is a leading ad-tech platform enabling advertisers to reach targeted audiences across the open internet with real-time, data-driven technology. The company has maintained healthy 20%+ growth while competitors experienced low-to-negative growth, consistently generating 39% adjusted EBITDA margins and strong free cash flow. |
Ad Tech Programmatic Real-time Bidding Data Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 18, 2026 | Fund Letters | Rowan Street Capital | META | Meta Platforms | Internet Content & Information | Interactive Media & Services | Bull | NASDAQ | digital advertising, growth, Long-term, Meta Platforms, social media, technology, virtual reality, Volatility | Login |
| Apr 18, 2026 | Fund Letters | Rowan Street Capital | TSLA | Tesla Inc | Auto Manufacturers | Automobile Manufacturers | Bull | NASDAQ | automotive, clean energy, Electric Vehicles, growth, innovation, Long-term, technology, Volatility | Login |
| Apr 18, 2026 | Fund Letters | Rowan Street Capital | SHOP | Shopify Inc | Software - Application | Application Software | Bull | New York Stock Exchange | e-commerce, growth, Long-term, Merchant Services, platform, SaaS, Software, technology | Login |
| Apr 18, 2026 | Fund Letters | Rowan Street Capital | CSU.TO | Constellation Software | Software - Application | Application Software | Bull | Toronto Stock Exchange | Acquisitions, capital allocation, compounder, Mission-Critical, Software, technology, Value, vertical market software | Login |
| Oct 24, 2025 | Fund Letters | Alex Kopel | TSLA | Tesla Inc. | Consumer Discretionary | Automobiles | Bull | NASDAQ | AI, Automation, Autonomy, Data, energy storage, EV, innovation, manufacturing, Margins, robotics | Login |
| Oct 24, 2025 | Fund Letters | Alex Kopel | SPOT | Spotify Technology S.A. | Communication Services | Entertainment | Bear | NYSE | advertising, ARPU, Audio, Automation, Competition, Margins, Podcasts, Streaming, valuation | Login |
| Oct 24, 2025 | Fund Letters | Alex Kopel | TSLA | Tesla Inc. | Consumer Discretionary | Automobiles | Bull | NASDAQ | AI, Automation, Autonomy, Data, energy storage, EV, innovation, manufacturing, Margins, robotics | Login |
| Oct 24, 2025 | Fund Letters | Alex Kopel | SPOT | Spotify Technology S.A. | Communication Services | Entertainment | Bear | NYSE | advertising, ARPU, Audio, Automation, Competition, Margins, Podcasts, Streaming, valuation | Login |
| Jul 11, 2025 | Fund Letters | Alex Kopel | META | Meta Platforms, Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, compounding, Drawdowns, social media | Login |
| Jul 11, 2025 | Fund Letters | Alex Kopel | SPOT | Spotify Technology S.A. | Communication Services | Interactive Media & Services | Bull | New York Stock Exchange | Audio, Engagement, margin expansion, Streaming, Subscription | Login |
| Jun 30, 2025 | Fund Letters | Rowan Street Capital | META | Meta Platforms | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, growth, platform, social media, technology, turnaround, virtual reality | Login |
| Jun 30, 2025 | Fund Letters | Rowan Street Capital | SPOT | Spotify | Communication Services | Interactive Media & Services | Bull | NYSE | Audio, growth, media, Music streaming, platform, Subscription, technology | Login |
| Dec 31, 2024 | Fund Letters | Rowan Street Capital | META | Meta Platforms | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI, Business Messaging, digital advertising, growth, Metaverse, Reels, social media, technology | Login |
| Dec 31, 2024 | Fund Letters | Rowan Street Capital | SPOT | Spotify | Communication Services | Entertainment | Bull | NYSE | Audio Streaming, Digital Entertainment, MAU Growth, Music, platform, Podcasts, Subscription, technology | Login |
| Dec 31, 2024 | Fund Letters | Rowan Street Capital | TTD | The Trade Desk | Communication Services | Interactive Media & Services | Bull | NASDAQ | adtech, cloud platform, Data-Driven, digital advertising, growth, Pandemic Opportunity, programmatic advertising, technology | Login |
| Dec 31, 2024 | Fund Letters | Rowan Street Capital | SHOP | Shopify | Information Technology | IT Services | Bull | NYSE | cash flow growth, commerce platform, Digital transformation, e-commerce, growth, retail technology, SaaS, technology | Login |
| Dec 31, 2024 | Fund Letters | Rowan Street Capital | TOI.V | Topicus | Information Technology | Software | Bull | TSX Venture | Constellation Software, Europe, Mission-Critical Software, recurring revenue, Software Acquisitions, spinoff, vertical market software, VMS | Login |
| Jun 30, 2024 | Fund Letters | Rowan Street Capital | META | Meta Platforms | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI Assistant, Artificial Intelligence, digital advertising, growth, social media, technology, virtual reality | Login |
| Jun 30, 2024 | Fund Letters | Rowan Street Capital | SPOT | Spotify | Communication Services | Interactive Media & Services | Bull | NYSE | Audio Content, cash generation, digital media, Music streaming, Podcasts, subscription model, turnaround | Login |
| Jun 30, 2024 | Fund Letters | Rowan Street Capital | TTD | The Trade Desk | Communication Services | Interactive Media & Services | Bull | NASDAQ | adtech, Connected tv, Data Analytics, digital advertising, growth, programmatic advertising, technology | Login |
| Jun 30, 2024 | Fund Letters | Rowan Street Capital | TOI.V | Topicus | Information Technology | Application Software | Bull | TSX Venture | cash generation, Constellation Software, Europe, Mission-Critical Software, Software Acquisitions, spinoff, vertical market software | Login |
| Jun 30, 2024 | Fund Letters | Rowan Street Capital | SHOP | Shopify | Information Technology | Application Software | Bull | NYSE | digital commerce, E-commerce Platform, growth, Merchant Solutions, online retail, SaaS, technology | Login |
| Mar 31, 2024 | Fund Letters | Rowan Street Capital | CMG | Chipotle Mexican Grill | Consumer Discretionary | Restaurants | Bull | NYSE | Consumer Discretionary, Fast casual, growth, Long-term Holdings, Mexican Food, Quality Business, Restaurants | Login |
| Mar 31, 2024 | Fund Letters | Rowan Street Capital | TTD | The Trade Desk | Communication Services | Interactive Media & Services | Bull | NASDAQ | adtech, Communication Services, digital advertising, growth, Long-term Holdings, programmatic advertising, SaaS, technology | Login |
| Jan 1, 2024 | Fund Letters | Rowan Street Capital | ADYEY | Adyen | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | digital payments, enterprise, Fintech, growth, Netherlands, network effects, Payments, platform, SaaS, Unified Commerce | Login |
| TICKER | COMMENTARY |
|---|---|
| META | Meta has delivered a cumulative return of approximately 1,300% since its IPO, or about 21% annually. The path to those returns, however, has been anything but smooth. Over the past decade, the stock has experienced numerous drawdowns of 30% or more, several declines of 50% or more, and, most notably, a decline of nearly 80% in 2022. These periods were not isolated events — they were a recurring feature of owning this business. And yet for those who remained focused on the underlying fundamentals, the long-term outcome has been exceptional. We believe today represents one of the most compelling opportunities in Meta we have seen since 2022. |
| TSLA | Tesla provides an even more striking example—not just of volatility, but of how disproportionate long-term outcomes can be relative to the experience along the way. Since its IPO in 2010, the stock has delivered a cumulative return of approximately 22,000%, or about 41% annually. Looking at that result today, the path can appear almost inevitable. In reality, it was anything but. There were multiple periods along the way where the stock declined sharply—on numerous occasions by more than 50%, and once by over 70%—often accompanied by shifting narratives around the business. At different points, the concerns ranged from questions about the company's survival, to valuation, to increasing competition, founder behavior and execution risk. Each of those moments felt uncertain in real time. And yet, for investors who were able to remain focused on the long-term trajectory of the business, the outcome has been extraordinary. The biggest winners rarely feel comfortable to own. While Tesla has demonstrated this pattern over many years, our ownership of the business is still relatively recent. We outlined our investment thesis in detail in our Q3 2025 letter, and our view remains unchanged. From here, our role is not to predict short-term movements, but to remain disciplined and allow the long-term economics of the business to play out. |
| SHOP | Shopify has been an exceptional business over time, compounding at over 40% annually since its IPO. The path to those returns, however, has been far from smooth, including several sharp drawdowns and a decline of more than 80% in 2022. We experienced this firsthand. After initiating our position in early 2022, the stock declined by an additional ~50%. We believed the drawdown reflected multiple compression, not fundamental deterioration. The business continued to grow revenues, expand its merchant ecosystem, and strengthen its competitive position. The price was broken. The company was not. It did not feel good. The best opportunities rarely do. What followed was a long and uncomfortable period of patience before payoff. The stock rebounded 124% in 2023 — and yet we were still underwater on our investment. It was not until 2024 — when Shopify generated over $1 billion in operating profit for the first time and the stock gained another 37% — that we finally got our capital back and began generating real returns. The stock then rose 51% in 2025, making it our best performer of the year. Three years of patience. Three years of watching the business execute while the stock tested our conviction repeatedly. More recently the stock has again declined meaningfully — down 26% at quarter-end, though it has since recovered to approximately -17% as of mid-April. There is nothing unusual about that. It is the same pattern, playing out again. Shopify is a clear example of why patience — especially through periods of valuation compression — is often required before fundamentals are fully reflected in stock prices. |
| CSU.TO | During the quarter, we initiated a position in Constellation Software (TSE: CSU), funded by the sale of the remainder of our Spotify position. Constellation is one of the most exceptional capital allocation platforms in the public markets — a company that has compounded shareholder capital at approximately 28% annually since its 2006 IPO by systematically acquiring and operating mission-critical vertical market software businesses. The stock has recently declined approximately 50% from its highs, creating what we believe is a rare entry point into a business of this quality. |
| NFLX | Netflix Inc is listed in the portfolio holdings table as one of the largest holdings by portfolio weight as of March 31, 2026, owned since Dec 2019. |
| TOI.TO | Topicus.Com Inc is listed in the portfolio holdings table as one of the largest holdings by portfolio weight as of March 31, 2026, owned since Mar 2021. |
| 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 |
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| No industry data available | |||
