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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, City Different Investments - Multi-Cap Core. This analysis is provided for institutional research purposes only and is not investment advice.
"The Multi-Cap Core strategy returned 6.34% in 3Q 2025, underperforming the S&P 500. The fund exited Digital Ocean (DOCN) to consolidate capital into higher-conviction names while emphasizing their disciplined, life-cycle-focused investment process."
In their 3Q 2025 letter, City Different Investments discusses the Multi-Cap Core Strategy, which returned 6.34% net, underperforming the S&P 500 Index's 8.12%. Portfolio Manager Rob MacDonald highlights 'The Macklemore Theory of Investing' to explain their research process—comparing it to thrift-store shopping ('popping tags') and trying on clothes in a dressing room to find the best-fitting opportunities. The quarter's underperformance was primarily driven by mid-caps and stock selection in 'Emerging' spec-growth companies. The fund fully sold out of Digital Ocean (DOCN) due to lagging fundamentals and reinvested the proceeds into higher-conviction holdings. The strategy continues to outperform the benchmark on a three-year trailing basis, and the managers remain constructive on their balanced, disciplined approach.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
The score is set at 0.55 to represent moderate conviction. The fund manages a diversified portfolio of 24 long-term positions, typical of its target 20-35 position range. While they consolidated one position (DOCN) into higher-conviction holdings, they maintain structured diversification across three lifecycle baskets (Emerging, Established, Mature).
Growth Outlook
The manager expresses a neutral market outlook of 0.50, noting that 'the market will go up and down over time.' Rather than trying to forecast near-term macro direction, the team focuses on long-term fundamental positioning.
Risk Appetite
The score is balanced at 0.50. The fund is positioned with 45.8% in Established, 44.5% in Mature, and 8.4% in Emerging businesses. This represents a disciplined balance across the company life-cycle spectrum rather than aggressive risk-on behavior.
Capital Deployment
Capital deployment is net neutral at 0.50. The manager completely exited one holding (DigitalOcean) but fully recycled those proceeds back into higher-conviction existing holdings, indicating no net changes in cash.
Forward Guidance
Forward guidance is scored at 0.50. The manager notes that periods of disappointing performance are often ideal times to put new money to work, but does not provide explicit or urgent forward actions, expressing instead a patient long-term stance.
Language Signal
The language signal is neutral at 0.50. The letter is dominated by philosophical analogies of thrift shopping and stone sculpting, with a balanced evaluation of their current-quarter underperformance and trailing three-year outperformance.
Perceived Risk
Perceived risk is rated at 0.40, indicating standard risk acknowledgment. While the manager discusses index concentration and momentum-driven rallies in speculative names, there is no discussion of systemic economic collapse or major macro threats.
Opportunity Density
Opportunity density is moderate at 0.55. The manager emphasizes that there are thousands of stocks to look through ('the realm of what ifs'), but notes that the 'dressing room' phase breaks most ideas, demonstrating selective opportunities.
Time Horizon
A high score of 0.75 is given because the manager explicitly targets a multi-year horizon, noting 'our investing gaze remains on the long-term horizon' and focusing on performance metrics over a three-year trailing basis.
