| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 2.35% | 17.88% |
| 2025 | 2024 |
|---|---|
| 17.9% | 9.6% |
2025 delivered strong equity returns of 17.88% despite a volatile start driven by tariff fears and China's DeepSeek AI model revelation. The year unfolded in four distinct quarters, beginning with sharp declines in AI-related stocks as DeepSeek appeared to match US AI performance at lower cost. An administration pivot toward tariff moderation launched a second quarter rally led by the same technology stocks that had suffered earlier. Summer and fall saw performance broaden beyond technology, with every S&P sector except Real Estate posting positive returns. AI remained the dominant investment theme, driving Communications and Technology sector leadership. International markets significantly outperformed US markets due to dollar weakness, with the DXY falling 10.08%. Precious metals surged to record highs, with gold reaching $4,314 and silver hitting $71, driven by debasement concerns. The Federal Reserve cut rates three times after initially standing pat on inflation concerns. Looking ahead, the backdrop remains supportive with fiscal liquidity, potential AI productivity benefits, and historical precedent showing multi-year winning streaks are common rather than exceptional.
Despite volatile periods driven by tariff concerns and China's DeepSeek AI model, 2025 delivered strong 17.88% market returns with broadening leadership beyond mega-cap technology stocks, supported by dollar weakness that boosted international returns and precious metals rallies reflecting debasement concerns.
The backdrop for equities entering 2026 remains supportive despite three straight years of double-digit returns. Multi-year winning streaks are historically common, with fiscal liquidity, potential AI-driven productivity, and no clear constraint from the bond market providing tailwinds. Policy makers may have learned better economic management over time, and if AI delivers productivity benefits, economic expansion could address debt burdens and challenge previous winning streak longevity.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 11 2026 | 2025 Q4 | GOOGL | AI, Dollar, Fed, gold, international, Silver, tariffs, technology | - | 2025 delivered 17.88% returns despite tariff and AI volatility, with performance broadening beyond technology. Dollar weakness drove international outperformance while gold and silver hit record highs on debasement fears. Fed cut rates three times. Multi-year winning streaks are historically normal, and supportive conditions including fiscal liquidity and AI productivity potential suggest continued market strength into 2026. |
| Oct 13 2025 | 2025 Q3 | GOOGL, MSFT, NVDA, ORCL, TSLA | AI, energy, Government, infrastructure, Markets, Politics, technology | - | Strong Q3 market performance was led by AI-driven technology stocks, but sustainability concerns mount over circular tech investments and power constraints. Political gridlock threatens a record government shutdown with aggressive layoffs planned, while 95% of companies see zero AI returns despite massive investments. The AI boom may follow historical technology cycles with near-term disappointment. |
| Jul 8 2025 | 2025 Q2 | - | AI, bifurcation, consumer, Enterprise, productivity, tariffs, Trade Policy | - | Economic bifurcation between struggling consumers and AI-powered enterprise productivity gains defines this cycle. Trump tariffs created maximum pessimism in April but markets recovered. Corporate profits rise 20-50% from AI while consumer confidence falls. Fed stays rigid on policy. Focus on productivity enablers, avoid consumer discretionary as delayed recession hits consumers. |
| Mar 31 2025 | 2025 Q1 | AAPL, ADBE, ASSA-B.ST, AV.L, AVGO, CB, DANOY, GSK, LLY, MSFT, NOW, NTDOY, NVDA, NVO, NVS, RHHBY, SIE.DE, SONY, TSM, WKL.AS | AI, global, infrastructure, international, policy, semiconductors, tariffs, technology | - | US equity dominance ended in Q1 2025 as policy uncertainty and AI volatility drove underperformance. International markets outperformed while Trump's tariff policies and DeepSeek's AI breakthrough created market stress. Despite short-term volatility, AI infrastructure buildout continues. Portfolio benefits from US underweight but suffers from technology overweight. Focus remains on adaptable, high-quality companies amid increasing uncertainty. |
| Dec 31 2024 | 2024 Q4 | AAPL, ADBE, AVGO, GOOGL, LIN, LLY, LULU, NEE, NOW, NVDA, NVO, SBUX, TJX, TSCO, TSM | AI, infrastructure, Onshoring, semiconductors, Sustainable, tariffs, technology, Utilities | - | Saturna Sustainable Equity Fund underperformed in Q4 despite strong AI holdings performance, repositioning toward adaptable companies benefiting from onshoring and infrastructure trends. Added Broadcom, Linde, NextEra, and Prysmian while maintaining AI exposure. Trump policies create mixed outlook with tax cuts and deregulation as positives, tariffs and debt ceiling as risks. |
| Sep 30 2024 | 2024 Q3 | AAPL, ACN, ADBE, HD, LLY, LOW, LULU, MSFT, NOK, NOW, NVDA, NXPI, SBUX, TEL, TSM | duration, Fed, rates, Sustainable, technology, volatility | - | Saturna's sustainable funds weathered August volatility from unwinding hedge fund trades while positioning for Fed rate cuts. Equity fund underperformed on semiconductor weakness despite home improvement strength. Bond fund's shorter duration hurt performance as rates fell. Economic growth, declining inflation, and dovish Fed policy support outlook despite election uncertainty and elevated valuations. |
| Jun 30 2024 | 2024 Q2 | AAPL, ACN, ADBE, DASTY.PA, FERG.L, GIB.A.TO, GSK, HD, LLY, LOW, LULU, NVDA, NVO, NXPI, SBUX, SCHNEIDER.PA, STM, TJX, TSM, WKL | AI, global, growth, healthcare, large cap, semiconductors, Sustainable, technology | - | Saturna's sustainable funds posted solid Q2 results driven by AI leaders Nvidia and Taiwan Semiconductor, plus healthcare winner Novo Nordisk's GLP-1 drugs. Consumer discretionary stocks lagged amid economic uncertainty. The fund increased US exposure defensively while maintaining conviction in AI's transformative potential despite inflation persistence and delayed rate cut expectations. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI was the dominant investment theme of 2025, driving technology stock performance despite initial volatility from China's DeepSeek model. The theme remained central throughout the year with data center buildout supporting related sectors. |
Artificial Intelligence Technology DeepSeek Data Centers |
GoldGold reached all-time highs at $4,314 by year-end, surpassing previous peaks even in inflation-adjusted terms. The appreciation was driven by debasement concerns and central bank interest. |
Precious Metals Inflation Hedge Central Banks | |
SilverSilver soared even more than gold to $71 by year-end, though remaining below inflation-adjusted peaks. The rally was influenced by supply-demand imbalances and industrial uses including solar power. |
Precious Metals Industrial Metals Solar | |
DollarThe US Dollar Index fell 10.08% during 2025, its steepest drop since 2017. This weakness turbocharged returns for dollar-based investors in overseas markets. |
Currency DXY International | |
| 2025 Q3 |
AIThe rapid buildout of AI infrastructure is driven by large strategic and circular investments among tech giants, raising concerns over sustainability and power supply constraints. Questions arise about whether companies investing in AI will ever see meaningful returns, with 95% of organizations currently getting zero return from GenAI investments despite $30-40 billion in enterprise investment. |
Data Centers Cloud Semiconductors Energy Storage Grid Upgrade |
Energy TransitionPower generation represents a critical issue facing AI development as electricity consumption has been growing at roughly 2% annually since 2020. Utilities are overwhelmed with grid connection requests but are wary of overbuilding due to concerns about excess capacity and customer rate increases. |
Grid Upgrade Data Centers Energy Storage Power Electronics | |
| 2025 Q2 |
AIThe corporate sector is experiencing an acceleration of AI-driven productivity gains and margin expansion. Enterprise software vendors report productivity improvements in the 20-50% range across various business functions. This creates a paradoxical economic environment where corporate profitability marches higher while consumer purchasing power faces increasing pressures from structural technological displacement. |
Productivity Enterprise Automation Margins Technology |
Trade PolicyThe Trump Administration's economic agenda collapsed when investors realized the Trump put had expired and was replaced by expensive call options resembling wartime economic measures. Reciprocal tariffs were imposed by the US to virtually every other nation on April 2, marking maximum pessimism. The administration continues to secure new trade agreements, though the pace may be slow and incremental. |
Tariffs Trade Wars Geopolitical Policy Uncertainty | |
| 2025 Q1 |
AIAI infrastructure buildout continues despite market volatility. DeepSeek's competitive model caused sharp selloffs in AI-exposed companies, but hard data points to continued infrastructure investment. Reality versus expectations dynamic creates volatility as crowded trades exacerbate market movements. |
Nvidia Infrastructure DeepSeek Compute Buildout |
Trade PolicyTrump administration announced at least 13 different tariff policies, culminating with shock rates on April 2. Tariffs intended to increase domestic manufacturing and elicit fear from global partners. Policy uncertainty breeds concern as beneficiaries of global status quo may cede advantages. |
Tariffs Manufacturing Isolationist Uncertainty Negotiations | |
SemiconductorsSemiconductor companies faced significant declines as AI infrastructure providers like Taiwan Semiconductor and Broadcom were among top detractors. Manufacturing capacity at Taiwan Semiconductor remains the limiting factor rather than demand for AI chips. |
Taiwan Semiconductor Broadcom Manufacturing Capacity Foundries | |
| 2024 Q4 |
AIAI infrastructure companies like Nvidia, Taiwan Semiconductor, and Broadcom drove significant portfolio returns. The fund maintains exposure to AI enablers while adding companies whose growth opportunities are not contingent on AI advancements. Many companies contributing to AI building blocks enjoyed extraordinary returns during 2024. |
GPUs Infrastructure Semiconductors Training Models |
OnshoringThe fund positioned for US re-industrialization and near-shoring trends, adding companies like Fuji Electric benefiting from near-shoring and grid modernization, and Linde whose services are critical for onshoring. Demographic and near-shoring realities require closer economic ties between US, Canada, and Mexico despite tariff threats. |
Re-industrialization Manufacturing Supply Chain Infrastructure Trade | |
Trade PolicyTrump's tariff policies will disincentivize Chinese goods purchases while promoting closer relationships with Mexico and Canada. The fund expects tariffs on goods with national security implications that could be reasonably near-shored. Reduced dependence on China means closer relationships with top trading partners. |
Tariffs China Mexico Canada Security | |
Infrastructure SpendingThe fund added infrastructure-focused companies including Prysmian for electrical and telecom cables necessary to upgrade critical infrastructure, and NextEra as a leading utility and renewable energy generator. Infrastructure Investment and Jobs Act provides legislated subsidies for onshoring. |
Grid Cables Utilities Modernization Investment | |
| 2024 Q3 |
VolatilityThe quarter saw significant volatility spikes, particularly on August 4 when the VIX jumped 42 points due to unwinding of popular hedge fund trades including the yen carry trade and AI-exposed technology stocks. These technical rather than fundamental disruptions created forced selling feedback loops as leveraged positions were unwound. |
VIX Hedge funds Carry trade Technical |
RatesThe Federal Reserve implemented its first rate cut in four years, lowering the federal funds rate by 50 basis points to 4.75%-5% in September. This dovish shift was driven by progress on inflation declining to 2.5% and concerns about labor market slowing despite low 4.1% unemployment. |
Fed Rate cuts Monetary policy Inflation | |
AITechnology stocks exposed to artificial intelligence themes became overcrowded trades that unwound during the quarter's volatility. Despite the technical disruption, Technology sector's outsized earnings growth and market-leading performance appeared justified by productivity growth trends. |
Technology Earnings Productivity Overcrowded | |
| 2024 Q2 |
AIGenerative AI is driving stock prices, index returns, and capital expenditures across technology companies. The fund sees significant productivity enhancements from AI tools and believes AI will follow the path of transformative technologies like desktop computers and cellular phones. Big tech companies are committing tens to hundreds of billions in capital investment for AI development. |
Artificial Intelligence Productivity Technology Investment Development |
SemiconductorsNvidia leads AI-driven semiconductor demand with graphics processing units in high demand. Taiwan Semiconductor manufactures chips behind Nvidia's products. The semiconductor cycle is central to AI infrastructure buildout and represents a key investment opportunity in the technology transformation. |
Chips Graphics Processing Manufacturing Infrastructure Demand | |
GLP1Consistent demand for weight loss drug therapy keeps Novo Nordisk performing strongly. Their GLP-1 medications continue producing significant wins for the drug manufacturer with no sign of slowing down, representing a sustained healthcare investment theme. |
Weight Loss Drug Therapy Healthcare Pharmaceuticals Treatment |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| GOOGL | Reviewing performance by sector, we see that Technology relinquished the captain's chair to Communications but was still the second strongest performing sector. Considering that Communications returns were driven by Alphabet, while Industrials and Utilities rode the coattails of the data center buildout, AI was irrefutably the dominant investment theme of a 'risk-on' year. |
| 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 | |||
