Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
2025 proved to be a Value-dominated year across global equity markets, with Value stocks outperforming by double digits in all regions. European equities led with Value gaining 15.3%, while Emerging Markets Value surged 21.6%. The outperformance was driven by investor rotation away from the narrow US AI trade toward cash-generative names with compelling valuations. In Europe, banks benefited from re-steepening yield curves, while defense and industrial stocks gained from higher order books tied to Germany's multi-year infrastructure and defense spending. Emerging markets benefited from a weaker US dollar and cheaper starting valuations. Quality stocks showed renewed strength in Q4 after a difficult first three quarters. Growth underperformed across most regions except the US. AI remained the defining growth engine but leadership broadened beyond mega-caps. Looking ahead to 2026, the trends are expected to continue with US markets benefiting from rate easing and fiscal support, Europe from defense and infrastructure stimulus, and emerging markets from earnings improvements and dollar weakness.
Value stocks dominated 2025 performance across all regions, particularly in Europe and Emerging Markets, as investors rotated away from concentrated AI trades toward cash-generative names with compelling valuations and policy support.
Looking to 2026, existing trends remain in place with the US benefiting from rate easing, fiscal tax cuts and improved growth outlook, though still suffering from high valuations and AI concentration. Europe should continue to benefit from rate stability and government stimulus around Defense and Infrastructure pushing European Value names. Emerging markets are expected to benefit from earning improvements, weak US dollar and improved domestic demand.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 20 2026 | 2025 Q4 | - | AI, defense, emerging markets, Europe, Factors, growth, Quality, value | - | Value stocks maintained leadership across all regions in Q4 and throughout 2025, with particularly strong performance in Europe (+15.3%) and Emerging Markets (+21.6%). The outperformance was driven by policy support, earnings resilience, compelling valuations, and investor rotation away from narrow AI trades toward cash-generative names. Artificial Intelligence remained the defining growth engine throughout 2025, though leadership broadened beyond mega-caps. In Q4, AI spending narratives were stress-tested as markets wobbled in November, but the theme continued to drive market dynamics despite some moderation in concentration. Defense stocks benefited from higher order books tied to re-armament and upgrades, particularly buoyed by Germany's multi-year infrastructure and defense push. This sector was among the notable winners in Europe's value-led rally throughout 2025. |
| Oct 8 2025 | 2025 Q3 | - | Bonds, fixed income, inflation, interest rates, yield curve | - | WisdomTree discusses the potential normalization of the U.S. yield curve as the Fed eases policy, projecting a 10-Year Treasury yield near 4.6%. The letter argues that fixed-income returns now offer two-thirds of equity-like returns with lower volatility. Strategists see 2025 as an attractive entry point for bonds amid declining inflation and higher real yields. |
| Jul 28 2025 | 2025 Q2 | - | diversification, Factors, income, inflation protection, thematic | - | The commentary focuses on thematic investing across income, inflation protection, and factor-based strategies. Management highlights the role of systematic approaches in capturing long-term structural trends. Portfolio construction emphasizes diversification and transparency. |
| Jun 12 2025 | 2025 Q1 | - | - | - | |
| Jan 20 2025 | 2024 Q4 | - | - | - | |
| Nov 20 2024 | 2024 Q3 | - | - | - | |
| Jul 25 2024 | 2024 Q2 | - | - | - | |
| Apr 24 2024 | 2024 Q1 | - | - | - | |
| Jan 18 2024 | 2023 Q4 | - | - | - | |
| Oct 30 2023 | 2023 Q3 | - | - | - | |
| Jul 24 2023 | 2023 Q2 | - | - | - | |
| Apr 26 2023 | 2023 Q1 | - | - | - | |
| Jan 18 2023 | 2022 Q4 | - | - | - | |
| Nov 2 2022 | 2022 Q3 | - | - | - | |
| Aug 11 2022 | 2022 Q2 | - | - | - | |
| Apr 12 2022 | 2022 Q1 | - | - | - |
| 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 |
Defense SpendingThe entire world is rapidly rearming off an extremely low base of defense spending. This exposure focuses on companies that make armaments for nation state security and materially outperformed for the year. |
Defense Armaments Rheinmetall Palantir RTX | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
Fixed Income |
|
Yield Curve |
||
| 2025 Q2 |
Thematic |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| No ticker commentary found. | |
| 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 | |||