| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 17.4% |
| 2025 |
|---|
| 17.4% |
Unison delivered a net return of +17.4% in 2025, driven by strong performance in AI-related holdings including Alphabet, which emerged from stepchild status to AI leadership with Gemini 3.0 gaining market share from ChatGPT. The fund initiated positions in Taiwan Semiconductor (TSMC), recognizing it as the critical bottleneck in AI infrastructure with 90% share of leading-edge nodes, and On Holding, viewing it as a play on the scarcity of authentic physical experiences in an AI-dominated world. The managers maintain that AI continues to assert itself across markets, with Big Tech's AI spending accounting for 90% of corporate capex and contributing half of U.S. GDP growth. However, they warn of potential air pockets ahead, noting that AI data centers would need to generate over $2 trillion in annual revenue to justify current investment levels. The fund maintains elevated cash levels as optionality, viewing potential market dislocations as opportunities to deploy capital into exceptional businesses at attractive prices.
Unison focuses on identifying businesses positioned at points of least slack in the AI ecosystem across three layers: Infrastructure (physical constraints like TSMC), Adopters (owners of proprietary context like Nubank), and Agnostic (scarcity of the real like On Holding), while maintaining elevated cash levels to capitalize on potential market dislocations.
While 2026 will likely be a banner year for financial journalism, the bar for another truly great investment year has risen. We are not predicting an imminent crash. Whether this bubble deflates in five months, five years, or never at all is inherently unknowable. We approach this moment invested and aligned alongside our partners, and prepared to deploy capital decisively when opportunity inevitably presents itself.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 30 2026 | 2025 Q4 | AAPL, AMAT, AXP, BAC, BRK-B, CDW, DE, ELV, GOOGL, JPM, LMT, META, NOC, NU, NVDA, ONON, TSLA, TSM, UNH, WFC | AI, Cloud, Long Term, semiconductors, technology, value |
GOOGL TSM BRK.B ONON NU HOLN SW AMRZ |
AI continues to assert itself across markets and the real economy in ways that demand to be addressed. The race is for AGI, with wealth accruing to whoever reaches it first. Big Tech's AI spending accounts for roughly 90% of corporate capex and contributes an estimated half of total U.S. GDP growth in 2025. TSMC represents a durable bottleneck in the infrastructure layer—the point of least slack in the global silicon supply chain. All roads lead to TSMC, with approximately 67% share of global foundry revenue and roughly 90% share of leading-edge nodes. Alphabet's cloud business made meaningful progress with revenue expected to reach approximately $57 billion (+32% YoY), while operating profit is projected to nearly double. Revenue backlog is growing faster than reported revenue, underscoring the persistent supply-demand imbalance. By designing proprietary silicon and committing to capital outlays for data centers on a financial scale attainable by only a handful of nation-states, these firms have constructed a physical moat that is, for all practical purposes, unreplicable. On Holding represents a play on the growing scarcity of the real. As digital marketing becomes commoditized and AI floods the world with generic content, value migrates toward physical community and technical prestige. On is selling membership in a curated, physical ecosystem that AI cannot replicate. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
CloudAmazon's positioning to benefit from both infrastructure and application layers of AI is highlighted. The company's logistical prowess represents one of the foremost moats in business and will be enhanced with AI through better orchestration of logistics assets and buildout of more sophisticated robotics. |
Infrastructure Logistics Automation Efficiency Coordination | |
Data CentersSupply constraints curtailing infrastructure buildout rate, but compute capacity is being used immediately upon coming online. This differs from dot-com bubble when dark fiber was installed ahead of need. Labor, power and land shortages creating bottlenecks. |
Supply Constraints Utilization Bottlenecks Infrastructure | |
LuxuryNew investment in Swatch represents exposure to luxury watch brands including Omega, Longines, Tissot, and others. The investment thesis is based on tangible assets including Swiss real estate and the potential for operating leverage when luxury demand recovers from current structural pressures. |
Watches Swiss Brands Premium Recovery | |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 30, 2026 | Fund Letters | Alex | AMRZ | Amrize Ltd | Materials | Construction Materials | Bull | New York Stock Exchange | Building materials, Housing, Insiders, turnaround, valuation | Login |
| Jan 30, 2026 | Fund Letters | Alex | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI, cloud, Optionality, Platforms, semiconductors | Login |
| Jan 30, 2026 | Fund Letters | Alex | TSM | Taiwan Semiconductor Manufacturing Company Limited | Information Technology | Semiconductor Foundries | Bull | New York Stock Exchange | AI, CapEx, Foundry, Moat, semiconductors | Login |
| Jan 30, 2026 | Fund Letters | Alex | BRK.B | Berkshire Hathaway Inc. | Financials | Multi-Sector Holdings | Bull | New York Stock Exchange | capital allocation, conglomerate, Governance, Insurance, Optionality | Login |
| Jan 30, 2026 | Fund Letters | Alex | ONON | On Holding AG | Consumer Discretionary | Footwear | Bull | New York Stock Exchange | Apparel, Branding, consumer, growth, Pricing power | Login |
| Jan 30, 2026 | Fund Letters | Alex | NU | Nu Holdings Ltd. | Financials | Digital Banks | Bull | New York Stock Exchange | banking, Fintech, growth, Latin America, valuation | Login |
| Jan 30, 2026 | Fund Letters | Alex | HOLN SW | Holcim AG | Materials | Construction Materials | Bull | Swiss Exchange | Cement, infrastructure, Margins, materials, spin-off | Login |
| TICKER | COMMENTARY |
|---|---|
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| AMAT | Top gainers in the Fund this quarter included Applied Materials (+26%). During the quarter, we trimmed the Fund's holding in Applied Materials as it rallied |
| AXP | American Express Company represents 22.1% of company owned with cost basis of $1,287 million and market value of $56,088 million, providing $479 million in 2025 dividends. |
| BAC | BAC, JNJ, JPM, and XOM were held in Miller/Howard portfolios as of December 31, 2025. |
| BRK-B | Our annual pilgrimage to Omaha was running according to plan until, as we headed to the airport while listening to the final moments of the annual shareholder's meeting, Buffett dropped the bombshell: he would step down as CEO at year-end. We believe the most important aspect of Berkshire—its culture—is likely to endure. Abel inherits Berkshire's massive $382 billion cash position and will likely allocate more capital than Warren and Charlie did over much of their investing careers. |
| CDW | CDW was the second-worst performer. The IT industry continued to suffer from the pull forward of spending during COVID; however, we saw some momentum with the Windows 11 refresh and all of CDW's business lines had solid growth except for education. Despite this, overall earnings growth only exhibited modest improvement. |
| DE | Deere treaded water as the market wanted AI momentum and not our names. |
| ELV | The holdings in Applied Materials, Elevance Health, LVMH and Anheuser-Busch InBev were exited |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| JPM | JPMorgan (JPM) has identified 42 AI-related stocks in the S&P 500, which today represent 45% of the index's market cap. They estimate that these stocks have accounted for 78% of S&P 500 returns, 66% of earnings growth, and 71% of capital spending growth since ChatGPT launched in November 2022. As it relates to the impact on the U.S. economy, JPM estimates tech sector capital spending contributed 40%-45% of U.S. GDP growth through the first 9 months of the year, up from less than 5% during the same period in 2023. |
| LMT | We also made a name swap within our defence and security sub-theme, funding the initiation of Lockheed Martin through the sale of Kongsberg Gruppen. We preferred Lockheed as a more direct play on defence, with meaningful exposure to missiles, air defence and space, supported by a large order backlog that provides strong long-term visibility. |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| NU | Since our mid-year update, Nubank's shares increased 37%, bringing full-year performance to +63%. This performance has been driven primarily by fundamentals, with earnings growing approximately 42% over the same period. Brazil remains a powerful profit engine, with high customer engagement, improving risk-adjusted returns, and expanding penetration across consumer and SME banking. Mexico continues to emerge as the next major growth vector: customer penetration has reached ~14% of the population. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| ONON | On Holding, a premium athletic footwear and apparel company gaining share globally. On Holding delivered an impressive quarter punctuated by strong growth in international markets, such as China, as well as accelerating growth from apparel. |
| TSLA | Under the previous system, companies that produced only electric vehicles—most notably Tesla—generated large quantities of credits that could then be sold to manufacturers falling short of their EV production targets, allowing them to avoid regulatory penalties. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| UNH | We also added back a full position in UnitedHealth |
| WFC | and money center banks Citigroup and Wells Fargo, all following strong performance |
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