The Gabelli Dividend Growth Fund

Investor Summary

Justin Bergner, CFA, has served as portfolio manager since March 1, 2017, bringing extensive fundamental analysis experience and sector expertise. He holds a B.A. in Economics & Mathematics from Yale University (1998) earned cum laude, and an MBA in Finance and Accounting from The Wharton School (2005). His career began at Gabelli & Company in 2005 as a metals and mining analyst, followed by five years at Axiom International Investors covering industrials and healthcare sectors. He rejoined Gabelli in 2013 focusing on Diversified Industrials, Home Improvement, and Transport companies. Prior to investment management, he worked in management consulting at Bain & Company and Dean & Company. The fund is supported by GAMCO Investors' team of over 30 sector-focused research analysts and the leadership of founder Mario J. Gabelli, who established the firm in 1977 and has received recognition including Morningstar Portfolio Manager of the Year (1997).

Fund Strategy

The fund employs GAMCO's proprietary Private Market Value (PMV) with a Catalyst™ methodology, a trademarked investment approach rooted in Graham and Dodd principles. PMV is defined as the value an informed industrialist would pay to purchase assets with similar characteristics, representing intrinsic value plus a premium for control. The investment process focuses on identifying attractive businesses trading at meaningful discounts to their Private Market Value while positioning for catalysts including mergers, management changes, restructurings, regulatory shifts, and technological advances. The research process emphasizes fundamental analysis of free cash flow, earnings per share, and private market value, supported by over 30 sector-focused analysts. The fund seeks dividend-paying stocks positioned for long-term dividend growth, investing at least 80% of net assets in dividend-paying securities including common stocks, preferred stocks, and convertible securities. This methodology has been consistently applied for over 40 years across the GAMCO platform.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
6.92%	2.37%	2.37%

Executive Summary

The Gabelli Dividend Growth Fund gained 2.4% in Q1 2026, outperforming the S&P 500's 4.3% decline and Russell 1000 Value's 2.1% gain. The quarter was marked by significant geopolitical volatility from the Iran conflict, driving oil prices higher and creating inflation concerns that delayed expected Fed rate cuts. Energy holdings led performance with the sector gaining 38%, while pharmaceutical positions like Merck and Moderna also contributed strongly. The fund initiated new positions in companies positioned to benefit from AI implementation, including Comcast, Airbnb, Alibaba, and HubSpot, despite broader software sector weakness from AI disruption fears. Software-exposed holdings like FIS and Take-Two detracted as investors worried about AI competition. The manager maintained a defensive posture with higher cash levels while focusing on companies with pricing power and sustainable dividend growth. Looking ahead, the fund remains positioned for continued volatility while seeking opportunities in AI-benefiting businesses and maintaining exposure to defensive dividend-paying companies.

Forward Outlook

Manager expects continued market volatility while Iran hostilities persist, with defensive sectors not necessarily outperforming due to higher yields. Focus remains on companies benefiting from AI implementation while being selective about software exposure given disruption risks.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
May 26 2026	2026 Q1	CVX, FIS, HUBS, MRK, MRNA, TTWO	AI, dividends, energy, large cap, Pharmaceuticals, value	-	Fund outperformed with 2.4% gain versus S&P 500's 4.3% decline in volatile Q1 2026. Iran conflict drove energy sector strength while AI disruption pressured software holdings. Manager initiated positions in AI-benefiting companies like HubSpot and Airbnb while maintaining defensive positioning. Strong pharmaceutical performance from Merck and Moderna offset software sector weakness from AI competition concerns.
Feb 18 2026	2025 Q4	AIG, AMZN, C, GOOG, IP, MDLZ, MRK, MS, NEM, ORCL, PNC, PRGO, SATS, WFC	AI, dividends, financials, gold, healthcare, value	GOOG MS NEM	The Gabelli Dividend Growth Fund outperformed in Q4 2025 with a 5.15% return, benefiting from healthcare sector strength, financial deregulation optimism, and selective AI exposure through Alphabet. Top contributor Merck reversed earlier declines as investors reappreciated franchise quality, while Newmont gained from gold's strong performance. The Fund's defensive positioning and focus on dividend-paying stocks with M&A potential drove results.
Nov 16 2025	2025 Q3	AAPL, AME, AMZN, AXP, BK, BRK.B, CAT, CHWY, DE, GOOGL, ITT, META, MSFT, NEM, NFLX, NVDA, RSG, SONY, TSLA, WBD	AI, gold, growth, M&A, Markets, rates, technology, Trade	MSGS US	Third quarter markets continued climbing with S&P 500 up 8.1%, driven by AI enthusiasm and broadening rally beyond technology. Fed cut rates 25bps while trade tensions eased with new deals. Gold hit $4,000 on fiscal concerns. M&A surged 33% to $3 trillion. Despite tailwinds from lower rates and reduced regulation, elevated 30x valuations present risks.
Jun 30 2025	2025 Q2	AMETEK, AMZN, AXP, BATRA, BK, BRK.A, CAT, CHWY, CNH, CR, CVS, CZR, DEERE, DTE.DE, ELAN, FOX, FRPT, IDXX, IVG.DE, MA, MFI.TO, MLI, MSFT, MSGS, NEM, NESN.SW, NFG, NFLX, NVDA, PETCO, RR.L, RSG, SBGI, SONY, TDS, TGNA, TMUS, TRATON.DE, TRUP, WBD, ZTS	AI, defense, gold, M&A, Pet Care, Sports, tariffs, Utilities	KR WCC	GAMCO navigated Q2 2025's tariff-driven volatility by focusing on value opportunities in sports, AI infrastructure, and defense spending themes. Despite market swings from Liberation Day policies, the firm maintains its disciplined PMV approach, finding opportunities in domestic small caps and international markets while remaining cautious on overall valuations amid policy uncertainty.
Mar 31 2025	2025 Q1	AAPL, AMZN, C, GOOGL, HPE, JPM, KR, MDLZ, MRK, NEM, PNC, TMUS, V, WFC, ZBH	dividends, financials, healthcare, tariffs, technology, value	-	The fund outperformed during Q1's market decline driven by tariff fears and AI concerns. Defensive positioning in financials and dividend-paying stocks proved beneficial as technology faced headwinds. Strong performance from Newmont, T-Mobile, and Mondelēz offset weakness in Amazon and tech holdings. The strategy continues focusing on quality businesses with competitive advantages at compelling valuations.
Dec 31 2024	2024 Q4	AAPL, AMZN, C, JPM, KR, MDLZ, MRK, NEM, NFLX, PNC, TMUS, V, WFC	AI, financials, growth, interest rates, regulation, technology, value	-	Fund returned 0.48% in Q4 versus S&P 500's 2.41%, with 11.28% full-year performance. Financial sector strength from yield curve steepening and deregulation expectations drove outperformance. Netflix, Wells Fargo, and Amazon led contributors while Newmont, Mondelēz, and Merck detracted. Strategy focuses on quality businesses at compelling valuations across value and growth spectrum.
Sep 30 2024	2024 Q3	AAPL, AMZN, AXP, C, CARR, EPC, GOOGL, JPM, MDLZ, MRK, NXPI, SLB, TMUS	AI, financials, rates, technology, Utilities, value	-	The fund returned 5.0% in Q3, underperforming due to sector positioning as financials and utilities led while technology lagged. Fed rate cuts drove sector rotation favoring value over growth. Top performers included American Express and T-Mobile, while energy and semiconductor names detracted. Portfolio maintains focus on quality businesses at compelling valuations across diversified sectors.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

May 26 2026

2026 Q1

CVX, FIS, HUBS, MRK, MRNA, TTWO

AI, dividends, energy, large cap, Pharmaceuticals, value

Fund outperformed with 2.4% gain versus S&P 500's 4.3% decline in volatile Q1 2026. Iran conflict drove energy sector strength while AI disruption pressured software holdings. Manager initiated positions in AI-benefiting companies like HubSpot and Airbnb while maintaining defensive positioning. Strong pharmaceutical performance from Merck and Moderna offset software sector weakness from AI competition concerns.

Feb 18 2026

2025 Q4

AIG, AMZN, C, GOOG, IP, MDLZ, MRK, MS, NEM, ORCL, PNC, PRGO, SATS, WFC

AI, dividends, financials, gold, healthcare, value

GOOG
MS
NEM

The Gabelli Dividend Growth Fund outperformed in Q4 2025 with a 5.15% return, benefiting from healthcare sector strength, financial deregulation optimism, and selective AI exposure through Alphabet. Top contributor Merck reversed earlier declines as investors reappreciated franchise quality, while Newmont gained from gold's strong performance. The Fund's defensive positioning and focus on dividend-paying stocks with M&A potential drove results.

Nov 16 2025

2025 Q3

AAPL, AME, AMZN, AXP, BK, BRK.B, CAT, CHWY, DE, GOOGL, ITT, META, MSFT, NEM, NFLX, NVDA, RSG, SONY, TSLA, WBD

AI, gold, growth, M&A, Markets, rates, technology, Trade

MSGS US

Third quarter markets continued climbing with S&P 500 up 8.1%, driven by AI enthusiasm and broadening rally beyond technology. Fed cut rates 25bps while trade tensions eased with new deals. Gold hit $4,000 on fiscal concerns. M&A surged 33% to $3 trillion. Despite tailwinds from lower rates and reduced regulation, elevated 30x valuations present risks.

Jun 30 2025

2025 Q2

AMETEK, AMZN, AXP, BATRA, BK, BRK.A, CAT, CHWY, CNH, CR, CVS, CZR, DEERE, DTE.DE, ELAN, FOX, FRPT, IDXX, IVG.DE, MA, MFI.TO, MLI, MSFT, MSGS, NEM, NESN.SW, NFG, NFLX, NVDA, PETCO, RR.L, RSG, SBGI, SONY, TDS, TGNA, TMUS, TRATON.DE, TRUP, WBD, ZTS

AI, defense, gold, M&A, Pet Care, Sports, tariffs, Utilities

KR
WCC

GAMCO navigated Q2 2025's tariff-driven volatility by focusing on value opportunities in sports, AI infrastructure, and defense spending themes. Despite market swings from Liberation Day policies, the firm maintains its disciplined PMV approach, finding opportunities in domestic small caps and international markets while remaining cautious on overall valuations amid policy uncertainty.

Mar 31 2025

2025 Q1

AAPL, AMZN, C, GOOGL, HPE, JPM, KR, MDLZ, MRK, NEM, PNC, TMUS, V, WFC, ZBH

dividends, financials, healthcare, tariffs, technology, value

The fund outperformed during Q1's market decline driven by tariff fears and AI concerns. Defensive positioning in financials and dividend-paying stocks proved beneficial as technology faced headwinds. Strong performance from Newmont, T-Mobile, and Mondelēz offset weakness in Amazon and tech holdings. The strategy continues focusing on quality businesses with competitive advantages at compelling valuations.

Dec 31 2024

2024 Q4

AAPL, AMZN, C, JPM, KR, MDLZ, MRK, NEM, NFLX, PNC, TMUS, V, WFC

AI, financials, growth, interest rates, regulation, technology, value

Fund returned 0.48% in Q4 versus S&P 500's 2.41%, with 11.28% full-year performance. Financial sector strength from yield curve steepening and deregulation expectations drove outperformance. Netflix, Wells Fargo, and Amazon led contributors while Newmont, Mondelēz, and Merck detracted. Strategy focuses on quality businesses at compelling valuations across value and growth spectrum.

Sep 30 2024

2024 Q3

AAPL, AMZN, AXP, C, CARR, EPC, GOOGL, JPM, MDLZ, MRK, NXPI, SLB, TMUS

AI, financials, rates, technology, Utilities, value

The fund returned 5.0% in Q3, underperforming due to sector positioning as financials and utilities led while technology lagged. Fed rate cuts drove sector rotation favoring value over growth. Top performers included American Express and T-Mobile, while energy and semiconductor names detracted. Portfolio maintains focus on quality businesses at compelling valuations across diversified sectors.

QUARTER	THEMES	TAGS
2026 Q1	AI Manager discusses AI's disruptive impact on software companies, noting concerns about AI services potentially displacing traditional software businesses. The fund purchased HubSpot despite AI-related software sector volatility, and several holdings declined due to AI competition fears including FIS, Take-Two, and Gen Digital.	Software Disruption Competition Automation
	Pharmaceuticals Strong performance from pharmaceutical holdings, particularly Merck which reached agreement with administration resolving pricing and tariff concerns. Moderna benefited from enthusiasm around cancer vaccines as next major therapeutic area. Manager sees pipeline assets offsetting patent expirations.	Cancer Vaccines Pipeline Patents
	Oil Energy sector was top performer with 38% gain due to Iran conflict and higher oil prices. Chevron performed in line with strong energy sector performance as geopolitical tensions drove oil prices higher throughout the quarter.	Geopolitics Iran Conflict Prices
	Inflation Higher oil prices from Iran conflict added inflation pressures and delayed Fed rate cuts. Manager notes inflation concerns from geopolitical developments affecting monetary policy expectations and market sentiment.	Fed Rates Geopolitics Policy
2025 Q4	Live Sports Mario Gabelli emphasizes live entertainment and sports as major investment themes, citing massive viewership numbers and recommending Atlanta Braves Holdings, Madison Square Garden Sports, and Manchester United as key plays on the sector's growth potential.	Sports Entertainment Media Valuation Teams
	Natural Gas National Fuel Gas is highlighted as an attractive utility investment with substantial mineral ownership in Appalachian Basin gas reserves, positioned to benefit from increasing free cash flow and potential company restructuring.	Utilities Energy Infrastructure Reserves Cash Flow
	AI Gabelli acknowledges AI's transformative impact while warning of potential market corrections similar to historical manias. He notes AI will touch everything but expresses concern about leveraged ETFs and market mechanics that could accelerate selloffs.	Technology Innovation Disruption Valuation Risk
	Media Fox and Versant Media Group are recommended as media plays, with Fox benefiting from sports rights and World Cup coverage, while Versant represents a spin-off opportunity with strong cash generation potential.	Broadcasting Content Sports Rights Spin-offs Cash Flow
2025 Q3	AI Artificial Intelligence continues to be the primary driver of market returns, with most of the Magnificent Seven at or near all time highs. The scale of investment in AI infrastructure continues to surpass expectations, with the five largest cloud computing platforms communicating capex plans for 2025 aggregating to approximately $380 billion.	Infrastructure Investment Technology Cloud
	Trade Policy Trade continues to be in flux, with the U.S. signing deals with many partners including the UK and European Union, though uncertainty remains for significant countries including China and India. The average U.S. tariff has decreased from 23% in April to 17.5% currently.	Tariffs China Uncertainty Negotiations
	Gold Gold and bitcoin extended their rallies at nearly $4,000 per ounce and $120,000 respectively, driven by fiscal concerns and search for real-asset hedges. Gold rose 16.7% during the quarter, climbing from $3,305.65 to $3,859.40 per ounce.	Inflation Hedge Fiscal Rally
	Rates The Federal Reserve cut rates for the first time this year in September, lowering the Fed Funds rate 25 bps to 4%-4.25%, with expectations for further cuts to come. 10 Year U.S. Treasury yields declined during the quarter and are currently around 4.1%.	Fed Monetary Easing Treasury
	Buybacks Despite a lull around Liberation Day due to tariff uncertainty, the merger & acquisition boom expected under President Trump has come to fruition so far in 2025, with global deals up 33% year to date to $3 trillion, a four year high.	M&A Deals Activity Volume
2025 Q2	Trade Policy The Trump administration implemented sweeping tariffs on April 2nd (Liberation Day), creating significant market volatility. While initial tariff rates were very high, bilateral trade deals with the UK, China, Vietnam, and India reduced effective rates. The administration appears intent on rolling back globalization, with tariffs serving as both negotiation tactics and policy tools.	Tariffs Globalization Bilateral Negotiation Liberation
	Live Sports Growing enthusiasm for sports investments driven by increasing ticket sales and vital sports broadcasting rights. Major sports leagues now allow up to 30% private equity ownership, increasing team valuations. The growth of the Hispanic market and sports gambling provides additional tailwinds for baseball and other sports properties.	Broadcasting Private Equity Gambling Hispanic Valuations
	AI Major AI infrastructure platforms committed approximately $330 billion in 2025 capex plans. ChatGPT's Weekly Active Users doubled since the start of the year, while Alphabet's Gemini showed 50x year-over-year growth in tokens generated. Commercial scale corporate productivity initiatives are expanding across multiple companies.	Infrastructure Capex Productivity Tokens Commercial
	Defense Spending European defense budgets rising sharply following the invasion of Ukraine, with 31 of 32 NATO member nations committing to boost defense spending to 5% of GDP by 2035. This represents roughly double current levels and creates significant opportunities for defense companies globally.	NATO Ukraine GDP Budget European
	Pet Care U.S. pet industry spending projected to reach $157 billion in 2025, up from $152 billion in 2024. Pet ownership reached new highs with 94 million U.S. households owning at least one pet. Gen Z shows 43.5% increase in pet ownership with tendency to own multiple pets, driving demand for premium products and services.	Ownership Premium Generation Multiple Services
	Energy Transition Electricity demand growing at fastest pace since mid-20th century, driven by AI-powered data centers, manufacturing reshoring, and transport electrification. Utilities responding with record capital investment in generation and grid upgrades, often in partnership with hyperscalers like Amazon, Microsoft, and Google.	Electricity Data Centers Reshoring Grid Hyperscalers
	Gold Gold continued strong performance with central banks driving demand as they diversify reserve assets. Gold now represents 20% of central bank reserves, recently overtaking the euro as the second largest allocation after the dollar. Private investor interest through gold ETFs also continued adding holdings during the quarter.	Central Banks Reserves Diversification ETFs Dollar
	M&A Global M&A activity was resilient with $1.98 trillion in first half 2025, a 33% increase versus 2024. The Trump administration initiated a more pragmatic approach to antitrust enforcement, with new FTC Chair Andrew Ferguson signaling willingness to accept remedies and pursue litigation only when confident of favorable outcomes.	Antitrust Enforcement Remedies Litigation Pragmatic
2025 Q1	Tariffs The quarter was dominated by concerns about President Trump's tariff announcements, with levels announced on April 2nd being beyond almost any expectations. This led to broad-based declines in equity markets and created significant market uncertainty.	Trade Policy Inflation Economic Policy
	AI AI technology faced headwinds during the quarter with concerns about AI capex, competition, and monetization spilling over to major tech companies. DeepSeek's success in creating AI models at dramatically lower costs challenged the investment thesis for many AI-related companies.	Technology Cloud Semiconductors
	Financials The S&P financial sector was up 3.4% in the first quarter, benefiting from lower interest rates, optimism around deal activity and deregulation. The 2-10 Year Treasury spread maintained a healthy 30-35bps level.	Banks Interest Rates Deregulation
2024 Q4	Financials Financial sector performed strongly in Q4 with 7.0% gain and 20% for 2024. Higher long-term rates and favorable yield curve steepening benefited banks. Expectations of easier regulatory policy under new administration supported large cap financial stocks.	Banks Regulation Yield Curve Interest Rates Capital
	AI Artificial intelligence remained a key market theme with continued optimism around AI infrastructure spending. Tesla shares celebrated Elon Musk's political significance. Mag7 stocks found reasons to rally with AI-related developments.	Infrastructure Technology Innovation Computing Investment
	Rates Interest rate environment was central to market dynamics. 2-10 year spread widened from 15bps to 33bps. Higher long-term rates created headwinds for some sectors but benefited financials through yield curve steepening.	Federal Reserve Yield Curve Monetary Policy Treasury Duration
2024 Q3	Rates Federal Reserve cut rates by 50 basis points in September, with 10-year Treasury yield falling 55 basis points to 3.81%. Lower rates benefited financial and utility stocks significantly.	Interest Rates Fed Cuts Treasury Yields Monetary Policy Financial Sector
	AI Artificial Intelligence investments by major tech companies raised investor concerns about returns on hundreds of billions in capital expenditures. Some questioning of AI investment rationale emerged.	Artificial Intelligence Technology Capital Expenditure Microsoft Alphabet
	Financials Financial sector performed strongly, up 10.5% in the quarter, benefiting from lower long-term interest rates and expectations of Fed rate cuts. Banks and financial services were top performers.	Banks Financial Services Interest Rates American Express Citigroup

QUARTER

THEMES

AI

Manager discusses AI's disruptive impact on software companies, noting concerns about AI services potentially displacing traditional software businesses. The fund purchased HubSpot despite AI-related software sector volatility, and several holdings declined due to AI competition fears including FIS, Take-Two, and Gen Digital.

Software Disruption Competition Automation

Pharmaceuticals

Strong performance from pharmaceutical holdings, particularly Merck which reached agreement with administration resolving pricing and tariff concerns. Moderna benefited from enthusiasm around cancer vaccines as next major therapeutic area. Manager sees pipeline assets offsetting patent expirations.

Cancer Vaccines Pipeline Patents

Oil

Energy sector was top performer with 38% gain due to Iran conflict and higher oil prices. Chevron performed in line with strong energy sector performance as geopolitical tensions drove oil prices higher throughout the quarter.

Geopolitics Iran Conflict Prices

Inflation

Higher oil prices from Iran conflict added inflation pressures and delayed Fed rate cuts. Manager notes inflation concerns from geopolitical developments affecting monetary policy expectations and market sentiment.

Fed Rates Geopolitics Policy

2025 Q4

Live Sports

Mario Gabelli emphasizes live entertainment and sports as major investment themes, citing massive viewership numbers and recommending Atlanta Braves Holdings, Madison Square Garden Sports, and Manchester United as key plays on the sector's growth potential.

Sports Entertainment Media Valuation Teams

Natural Gas

National Fuel Gas is highlighted as an attractive utility investment with substantial mineral ownership in Appalachian Basin gas reserves, positioned to benefit from increasing free cash flow and potential company restructuring.

Utilities Energy Infrastructure Reserves Cash Flow

AI

Gabelli acknowledges AI's transformative impact while warning of potential market corrections similar to historical manias. He notes AI will touch everything but expresses concern about leveraged ETFs and market mechanics that could accelerate selloffs.

Technology Innovation Disruption Valuation Risk

Media

Fox and Versant Media Group are recommended as media plays, with Fox benefiting from sports rights and World Cup coverage, while Versant represents a spin-off opportunity with strong cash generation potential.

Broadcasting Content Sports Rights Spin-offs Cash Flow

2025 Q3

AI

Artificial Intelligence continues to be the primary driver of market returns, with most of the Magnificent Seven at or near all time highs. The scale of investment in AI infrastructure continues to surpass expectations, with the five largest cloud computing platforms communicating capex plans for 2025 aggregating to approximately $380 billion.

Infrastructure Investment Technology Cloud

Trade Policy

Trade continues to be in flux, with the U.S. signing deals with many partners including the UK and European Union, though uncertainty remains for significant countries including China and India. The average U.S. tariff has decreased from 23% in April to 17.5% currently.

Tariffs China Uncertainty Negotiations

Gold

Gold and bitcoin extended their rallies at nearly $4,000 per ounce and $120,000 respectively, driven by fiscal concerns and search for real-asset hedges. Gold rose 16.7% during the quarter, climbing from $3,305.65 to $3,859.40 per ounce.

Inflation Hedge Fiscal Rally

Rates

The Federal Reserve cut rates for the first time this year in September, lowering the Fed Funds rate 25 bps to 4%-4.25%, with expectations for further cuts to come. 10 Year U.S. Treasury yields declined during the quarter and are currently around 4.1%.

Fed Monetary Easing Treasury

Buybacks

Despite a lull around Liberation Day due to tariff uncertainty, the merger & acquisition boom expected under President Trump has come to fruition so far in 2025, with global deals up 33% year to date to $3 trillion, a four year high.

M&A Deals Activity Volume

2025 Q2

Trade Policy

The Trump administration implemented sweeping tariffs on April 2nd (Liberation Day), creating significant market volatility. While initial tariff rates were very high, bilateral trade deals with the UK, China, Vietnam, and India reduced effective rates. The administration appears intent on rolling back globalization, with tariffs serving as both negotiation tactics and policy tools.

Tariffs Globalization Bilateral Negotiation Liberation

Live Sports

Growing enthusiasm for sports investments driven by increasing ticket sales and vital sports broadcasting rights. Major sports leagues now allow up to 30% private equity ownership, increasing team valuations. The growth of the Hispanic market and sports gambling provides additional tailwinds for baseball and other sports properties.

Broadcasting Private Equity Gambling Hispanic Valuations

AI

Major AI infrastructure platforms committed approximately $330 billion in 2025 capex plans. ChatGPT's Weekly Active Users doubled since the start of the year, while Alphabet's Gemini showed 50x year-over-year growth in tokens generated. Commercial scale corporate productivity initiatives are expanding across multiple companies.

Infrastructure Capex Productivity Tokens Commercial

Defense Spending

European defense budgets rising sharply following the invasion of Ukraine, with 31 of 32 NATO member nations committing to boost defense spending to 5% of GDP by 2035. This represents roughly double current levels and creates significant opportunities for defense companies globally.

NATO Ukraine GDP Budget European

Pet Care

U.S. pet industry spending projected to reach $157 billion in 2025, up from $152 billion in 2024. Pet ownership reached new highs with 94 million U.S. households owning at least one pet. Gen Z shows 43.5% increase in pet ownership with tendency to own multiple pets, driving demand for premium products and services.

Ownership Premium Generation Multiple Services

Energy Transition

Electricity demand growing at fastest pace since mid-20th century, driven by AI-powered data centers, manufacturing reshoring, and transport electrification. Utilities responding with record capital investment in generation and grid upgrades, often in partnership with hyperscalers like Amazon, Microsoft, and Google.

Electricity Data Centers Reshoring Grid Hyperscalers

Gold

Gold continued strong performance with central banks driving demand as they diversify reserve assets. Gold now represents 20% of central bank reserves, recently overtaking the euro as the second largest allocation after the dollar. Private investor interest through gold ETFs also continued adding holdings during the quarter.

Central Banks Reserves Diversification ETFs Dollar

M&A

Global M&A activity was resilient with $1.98 trillion in first half 2025, a 33% increase versus 2024. The Trump administration initiated a more pragmatic approach to antitrust enforcement, with new FTC Chair Andrew Ferguson signaling willingness to accept remedies and pursue litigation only when confident of favorable outcomes.

Antitrust Enforcement Remedies Litigation Pragmatic

2025 Q1

Tariffs

The quarter was dominated by concerns about President Trump's tariff announcements, with levels announced on April 2nd being beyond almost any expectations. This led to broad-based declines in equity markets and created significant market uncertainty.

Trade Policy Inflation Economic Policy

AI

AI technology faced headwinds during the quarter with concerns about AI capex, competition, and monetization spilling over to major tech companies. DeepSeek's success in creating AI models at dramatically lower costs challenged the investment thesis for many AI-related companies.

Technology Cloud Semiconductors

Financials

The S&P financial sector was up 3.4% in the first quarter, benefiting from lower interest rates, optimism around deal activity and deregulation. The 2-10 Year Treasury spread maintained a healthy 30-35bps level.

Banks Interest Rates Deregulation

2024 Q4

Financials

Financial sector performed strongly in Q4 with 7.0% gain and 20% for 2024. Higher long-term rates and favorable yield curve steepening benefited banks. Expectations of easier regulatory policy under new administration supported large cap financial stocks.

Banks Regulation Yield Curve Interest Rates Capital

AI

Artificial intelligence remained a key market theme with continued optimism around AI infrastructure spending. Tesla shares celebrated Elon Musk's political significance. Mag7 stocks found reasons to rally with AI-related developments.

Infrastructure Technology Innovation Computing Investment

Rates

Interest rate environment was central to market dynamics. 2-10 year spread widened from 15bps to 33bps. Higher long-term rates created headwinds for some sectors but benefited financials through yield curve steepening.

Federal Reserve Yield Curve Monetary Policy Treasury Duration

2024 Q3

Rates

Federal Reserve cut rates by 50 basis points in September, with 10-year Treasury yield falling 55 basis points to 3.81%. Lower rates benefited financial and utility stocks significantly.

Interest Rates Fed Cuts Treasury Yields Monetary Policy Financial Sector

AI

Artificial Intelligence investments by major tech companies raised investor concerns about returns on hundreds of billions in capital expenditures. Some questioning of AI investment rationale emerged.

Artificial Intelligence Technology Capital Expenditure Microsoft Alphabet

Financials

Financial sector performed strongly, up 10.5% in the quarter, benefiting from lower long-term interest rates and expectations of Fed rate cuts. Banks and financial services were top performers.

Banks Financial Services Interest Rates American Express Citigroup

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Feb 18, 2026	Fund Letters	Justin Bergner	MS	Morgan Stanley	Financials	Investment Banking & Brokerage	Bull	New York Stock Exchange	asset management, Fees, ROE, scale, wealth management	Login
Feb 18, 2026	Fund Letters	Justin Bergner	NEM	Newmont Corporation	Materials	Gold	Bull	New York Stock Exchange	acquisition, diversification, Gold, Integration, Real Rates	Login
Feb 18, 2026	Fund Letters	Justin Bergner	GOOG	Alphabet Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	AI, CapEx, cloud, Optionality, Search	Login
Nov 16, 2025	Fund Letters	Justin Bergner	MSGS US	Madison Square Garden Sports Corp.	Communication Services	Sports Franchises & Entertainment	Bull	NYSE	asset value, inflation hedge, Knicks, Media rights, Sports Franchises	Login
Jun 30, 2025	Fund Letters	Justin Bergner	WCC	Wesco International, Inc.	Industrials	Trading Companies & Distributors	Bull	New York Stock Exchange	Automation, cashflow, datacenter, deleveraging, Distribution, inflation, Margins, utility	Login
Jun 30, 2025	Fund Letters	Justin Bergner	KR	The Kroger Co.	Consumer Staples	Food Retail	Bull	New York Stock Exchange	analytics, Data, Loyalty, Margins, media, Private, retail, Value	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Feb 18, 2026

Fund Letters

Justin Bergner

Morgan Stanley

Financials

Investment Banking & Brokerage

Bull

New York Stock Exchange

asset management, Fees, ROE, scale, wealth management

Feb 18, 2026

Fund Letters

Justin Bergner

NEM

Newmont Corporation

Materials

Gold

Bull

New York Stock Exchange

acquisition, diversification, Gold, Integration, Real Rates

Feb 18, 2026

Fund Letters

Justin Bergner

GOOG

Alphabet Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

AI, CapEx, cloud, Optionality, Search

Nov 16, 2025

Fund Letters

Justin Bergner

MSGS US

Madison Square Garden Sports Corp.

Communication Services

Sports Franchises & Entertainment

Bull

NYSE

asset value, inflation hedge, Knicks, Media rights, Sports Franchises

Jun 30, 2025

Fund Letters

Justin Bergner

WCC

Wesco International, Inc.

Industrials

Trading Companies & Distributors

Bull

New York Stock Exchange

Automation, cashflow, datacenter, deleveraging, Distribution, inflation, Margins, utility

Jun 30, 2025

Fund Letters

Justin Bergner

The Kroger Co.

Consumer Staples

Food Retail

Bull

New York Stock Exchange

analytics, Data, Loyalty, Margins, media, Private, retail, Value

TICKER	COMMENTARY
MRK	Merck, the Fund's largest position, reached an agreement with the administration that resolved pricing and tariff concerns. Investors are now more confident that Merck can offset its Keytruda patent expiration with pipeline assets and recent acquisitions, the latter of which have been tracking above expectations.
MRNA	In late 2025, Moderna was trading close to all-time lows, with limited COVID vaccine sales, an active pipeline led by its first-mover Phase III cancer vaccine asset, and a large cash stockpile to support Research and Development (R&D). Enthusiasm has been building around cancer vaccines as the next major therapeutic area in cancer treatment, which created a powerful short squeeze in shares. Moreover, the FDA is reconsidering Moderna's flu vaccine after initially rejecting its application.
CVX	Chevron performed mostly in line with the energy sector, with the S&P Energy Sector up 38% in the quarter on the Iran conflict and higher oil prices.
HUBS	The Fund purchased HubSpot during the quarter amid the software vortex that began last year. The de-rating of software stocks in response to Agentic AI advancements went far beyond our expectations and overshadowed HubSpot's excellent fourth quarter, which highlighted accelerating sales and earnings growth.
FIS	FIS shares declined along with other fintech names that have a heavy software component, also on AI concerns.
TTWO	Take-Two shares sold off as investors worry that AI will allow the seamless creation of advanced video games.

TICKER

COMMENTARY

MRK

Merck, the Fund's largest position, reached an agreement with the administration that resolved pricing and tariff concerns. Investors are now more confident that Merck can offset its Keytruda patent expiration with pipeline assets and recent acquisitions, the latter of which have been tracking above expectations.

MRNA

In late 2025, Moderna was trading close to all-time lows, with limited COVID vaccine sales, an active pipeline led by its first-mover Phase III cancer vaccine asset, and a large cash stockpile to support Research and Development (R&D). Enthusiasm has been building around cancer vaccines as the next major therapeutic area in cancer treatment, which created a powerful short squeeze in shares. Moreover, the FDA is reconsidering Moderna's flu vaccine after initially rejecting its application.

CVX

Chevron performed mostly in line with the energy sector, with the S&P Energy Sector up 38% in the quarter on the Iran conflict and higher oil prices.

HUBS

The Fund purchased HubSpot during the quarter amid the software vortex that began last year. The de-rating of software stocks in response to Agentic AI advancements went far beyond our expectations and overshadowed HubSpot's excellent fourth quarter, which highlighted accelerating sales and earnings growth.

FIS

FIS shares declined along with other fintech names that have a heavy software component, also on AI concerns.

TTWO

Take-Two shares sold off as investors worry that AI will allow the seamless creation of advanced video games.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Pharmaceuticals

Oil

Inflation

Live Sports

Natural Gas

AI

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AI

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Gold

Rates

Buybacks

Trade Policy

Live Sports

AI

Defense Spending

Pet Care

Energy Transition

Gold

M&A

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AI

Financials

Financials

AI

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AI

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Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

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Justin Bergner Top Holdings

Recent Buys (13F)

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