| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 16.8% | -5.0% | 9.8% |
| 2025 |
|---|
| 9.8% |
Vision Capital Fund delivered +9.8% net returns in 2025 despite Q4 weakness, outperforming since inception with +21.4% cumulative returns versus +20.7% for the S&P 500. The manager maintains a concentrated approach with 28 holdings and zero turnover, adding to 9 positions during Q4 market weakness including Amazon, Meta, NVIDIA, and others. A new 2% position was initiated in Sea Limited following a 38% drawdown, capitalizing on Southeast Asia's digital transformation opportunity. The manager avoided memory semiconductors despite strong 2025 performance, citing cyclicality concerns and preferring exposure through TSMC and NVIDIA. Skepticism toward LLMs as a path to AGI drives cautious AI positioning, while declining Oracle and neocloud investments due to concentration and competitive risks. Portfolio companies demonstrate robust fundamentals with 25.9% revenue growth and 25.8% FCF margins. The long-term focus remains on business returns rather than valuation changes, with holdings expected to drive majority of returns through profitable growth and reinvestment at high returns.
Vision Capital Fund focuses on owning exceptional, growing companies that are market leaders riding secular tailwinds in winner-take-most markets, emphasizing long-term business returns over short-term trading gains.
Manager remains optimistic about long-term returns driven by underlying business fundamentals rather than valuation changes. Portfolio companies demonstrate strong growth with 25.9% TTM revenue growth and 25.8% TTM FCF margins on a weighted-average basis. Focus continues on owning exceptional, growing companies that can compound capital at attractive rates over multi-year periods.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 9 2026 | 2025 Q4 | 000660.KS, 005930.KS, AMZN, GOOGL, MELI, META, MSFT, MU, NOW, NVDA, ORCL, PME.AX, SE, SPOT, STX, TSM, TTD, WDC, WISE.L, ZS | AI, Asia, Cloud, E-Commerce, growth, long-term, semiconductors, technology | SE | Manager expresses skepticism about LLMs as a path to AGI, viewing them as sophisticated pattern recognition systems that mimic understanding without genuine comprehension. LLMs face… |
| Oct 3 2025 | 2025 Q3 | 3690 HK, JD, LULU, NET, PLTR | Artificial Intelligence, Cloud infrastructure, Data Analytics, digital transformation, software | - | The fund highlights a concentrated portfolio of high-quality global compounders driving technological transformation through AI and digital infrastructure. Key holdings such as Palantir, Cloudflare, and… |
| Jul 2 2025 | 2025 Q2 | 3690 HK, 9618 HK, LULU, MELI | disruption, Founders, growth runway, innovation, technology | PLTR | The commentary focuses on structural disruption across consumer, financial, and technology-driven business models. Management highlights founder-led companies leveraging technology to gain share from entrenched incumbents.… |
| Apr 15 2025 | 2025 Q1 | AMZN, TTD | - | - | - |
| Dec 31 2024 | 2024 Q4 | AMZN, LTM | - | - | - |
| Oct 1 2024 | 2024 Q3 | - | - | - | - |
| Jul 31 2024 | 2024 Q2 | - | - | - | - |
| Jun 8 2024 | 2024 Q1 | - | - | - | - |
| Jan 15 2024 | 2023 Q4 | COIN, CPNG, ILMN, LULU, NVDA, PAGS, PMC CN, S, SE, UPST, ZI | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CloudSnowflake was added as the leading player in cloud data storage, providing comprehensive data warehousing services for large businesses. The company's cloud-native platform helps companies store, analyze and share data across organizations, crucial for AI infrastructure upgrades. |
Data Storage Infrastructure Platform Enterprise | |
E-commerceAlibaba Group was the top detractor despite its core E-commerce business continuing to perform well and Cloud revenue growth accelerating. The company was negatively impacted by significant spending on subsidies to grow their Quick Commerce business, though losses are expected to be reduced over time. |
Quick Commerce Cloud China Technology AI | |
SemiconductorsTaiwan Semiconductor represents the dominant manufacturer for leading fabless chip designers including NVIDIA, Apple, and Broadcom. The global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with leading-edge capabilities. |
Foundries Advanced Process AI Chips Manufacturing Technology Leadership | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CloudSnowflake was added as the leading player in cloud data storage, providing comprehensive data warehousing services for large businesses. The company's cloud-native platform helps companies store, analyze and share data across organizations, crucial for AI infrastructure upgrades. |
Data Storage Infrastructure Platform Enterprise | |
| 2025 Q2 |
Disruption |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 2, 2025 | Fund Letters | Eugene Ng | PLTR | Palantir Technologies Inc. | Information Technology | Software | Bull | NASDAQ | compounder, Data-integration, enterprise, Government, network effects, S-curves, Singularity to Plurality | Login |
| Jan 9, 2026 | Fund Letters | Eugene Ng | SE | Sea Limited | Consumer Discretionary | Internet Retail | Bull | New York Stock Exchange | digital payments, ecommerce, Fintech, Logistics, Southeast Asia | Login |
| TICKER | COMMENTARY |
|---|---|
| 000660.KS | SK Hynix continued its strong performance as the clear winner to date in high bandwidth memory, reporting a 62% year-over-year growth in profits in the third quarter and announcing that all of its DRAM, NAND and high bandwidth memory capacity is fully booked for 2026. SK Hynix was a top contributor over the quarter and year, with reductions made as it was among artificial intelligence-related companies that had performed well. |
| 005930.KS | Samsung was the largest beneficiary as the shortage in its key memory products, particularly DRAM, has led to substantial price increases. The shares have re-rated to around 1.7x price-to-book, while still trading at less than 10x forward earnings. Given this re-rating, we have been reducing the position during the quarter. |
| AMZN | We added to our holdings in Amazon.com Inc. |
| GOOGL | I'm willing to go bankrupt rather than lose this race. Larry Page, co-founder of Google |
| MELI | E-commerce was another drag. Sea Limited and MercadoLibre struggled as investors became more cautious on discretionary spending and less willing to pay up for growth. |
| META | Meta was cited as a larger position that contributed little despite what I thought was positive operating progress, representing opportunity cost in the portfolio. |
| MSFT | OpenAI's well-documented 'circular' funding with its business partners (NVIDIA, Microsoft, among others) is additional cause for concern. |
| MU | We took a position in Micron Technology early in the quarter to gain exposure to high-bandwidth memory, a clear bottleneck in chip development. The position was later sold for a solid gain. |
| NOW | In the case of ServiceNow, the stock weakened following reports of a potential large acquisition while the company has also been challenged by bearish sentiment across the software as a service or SAAS segment. |
| NVDA | Nvidia sits at the top of the S&P 500 as the designer in the AI ecosystem. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. |
| PME.AX | Pro Medicus experienced a disappointing share price outcome over the year, with the shares declining by 11.5%, despite another excellent year of business execution, continued contract wins and strong operational performance. We continue to believe the diagnostic imaging viewer will become the natural platform upon which artificial intelligence–enabled diagnostic tools are deployed. AI will not replace the viewer — it will sit on top of it. |
| SE | We also exited Sea Limited due to significant adverse investor sentiment following a worse-than-expected earnings report where a capex announcements on logistic networks and fulfilment led to margin compression. Experience suggests that when companies go through capex cycles, sentiment can remain volatile until investors are satisfied that the expenditure will lead to a bigger and better business. |
| SPOT | Spotify is the world's leading audio streaming platform. Third-quarter results showed continued operating progress, with users increasing 11% to 713 million and subscribers growing 12% to 281 million. Meanwhile, operating income expanded to a mid-teens margin, alongside a record quarterly free cash flow. Despite the momentum, the shares weakened as investors reset near-term margin expectations. Spotify has been a top contributor to long-term Fund performance, and we remain confident that pricing, product innovation, advertising efficiency, and an expanding ecosystem can continue to widen margins over time, as reinforced this quarter by the launch of Spotify recommendations within ChatGPT. |
| STX | Some of our top performing closed positions: STX 53% |
| TSM | TSMC leads the MSCI Emerging Markets Index as the manufacturer in the AI ecosystem. |
| TTD | Communication Services also detracted from relative performance, driven by early-year weakness in The Trade Desk (TTD). The company, one of the world's largest independent demand-side advertising platforms, faced its first revenue miss in more than eight years and issued softer-than-consensus expected guidance. These challenges were compounded by disruptions from a sales reorganization and slower adoption of its new AI-powered platform, Kokai. |
| WDC | The fund maintained an overweight position in technology hardware, storage & peripherals company Western Digital. Early in 2025, the company announced a strategic spin-off separating its flash division as SanDisk, while Western Digital focused primarily on the hard disk drive (HDD) market, allowing the company to be valued as a standalone HDD leader. The continued surge in AI infrastructure demand massively boosted the demand for high-capacity HDDs, and Western Digital benefited from an increase in purchase orders from major hyperscalers extending into 2026 and even 2027. |
| WISE.L | Wise is the most asymmetric investment in our portfolio today and illustrates the idea of bounded downside and long-run upside in practice. Wise helps consumers and businesses hold and move money across borders, taking market share from the legacy correspondent banking model through infrastructure that is cheaper, faster, and more transparent. |
| ZS | Zscaler was among the top 5 largest detractors with significant price declines. We wrote a new investment memo on Zscaler during the quarter. |
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