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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Nomura Large Cap Growth Fund 2025 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Nomura Large Cap Growth Fund)

Primary Source Intelligence • Q2 2025 Letter Analysis

Nomura Large Cap Growth Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Nomura Large Cap Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+11.99%

Positioning StanceCONSTRUCTIVE

GeographyUS

Digest Analysis

Quick Take

"Macquarie Large Cap Growth underperformed in 2Q25 due to poor stock selection, particularly in healthcare and financials."

Executive Summary

Macquarie Large Cap Growth Fund posted positive absolute returns but underperformed the Russell 1000 Growth Index in 2Q25, primarily due to poor stock selection in a challenging market environment with low breadth. Healthcare, financials, and industrials detracted most from relative performance, with UnitedHealth Group facing utilization and coding challenges, while an underweight to Broadcom and position in Waste Connections also hurt returns. Contributors included underweights to Apple and Eli Lilly, plus a strong Microsoft position that benefited from accelerated Azure growth. The fund exited LVMH due to concerns about post-pandemic normalization. Looking ahead, the managers remain surprised by the market's risk appetite and narrow focus on momentum stocks, creating what they view as unsustainable valuations. They believe market asymmetry will eventually favor overlooked stable companies, particularly those with valuable proprietary data assets positioned for AI benefits. The fund maintains confidence in their quality without compromise approach for long-term compounding returns despite short-term underperformance.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

75%

CautiousHigh

High Conviction (75%)

The managers demonstrate high conviction in their quality without compromise philosophy and express confidence it will deliver value over time. They maintain steadfast belief in their approach despite underperformance and show clear positioning around data-rich AI beneficiaries.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The managers express surprise at the market's continued risk appetite and describe the environment as unsustainable with elevated valuations. They acknowledge potential hazards being ignored and describe market asymmetry, indicating a cautious to negative view of current market conditions.

Risk Appetite

10%

DefensiveAggressive

Defensive (10%)

The fund did some repositioning toward quarter-end and maintains positions in data-rich companies for AI exposure. While they acknowledge underperformance, they're not dramatically de-risking but rather staying disciplined to their quality approach, suggesting a slightly positive but cautious positioning.

Capital Deployment

20%

De-riskingDeploying

De-risking (20%)

The fund did some repositioning toward quarter-end and exited LVMH, but no major cash level changes or aggressive deployment/de-risking activities are mentioned. The activity appears selective and measured rather than dramatic in either direction.

Forward Guidance

15%

CautiousExpansionary

Cautious (15%)

The managers express confidence in their quality approach and believe market asymmetry will create opportunities for their style of investing. They see potential in overlooked companies with data assets, indicating a mildly optimistic forward bias despite current challenges.

Language Signal

45%

BearishBullish

Balanced (45%)

Language includes terms like unsustainable, hazards, asymmetry, and concerns about valuations, balanced against opportunity, confidence, and potential. The net balance leans slightly negative due to risk-focused terminology outweighing opportunity language.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

The managers identify multiple risk factors including market asymmetry, elevated valuations, narrow breadth, and an environment ignoring potential hazards. They describe the current trend as unsustainable, indicating moderate to high perceived risk in the environment.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

While acknowledging current market challenges, the managers see opportunities in overlooked stable companies and data-rich firms positioned for AI benefits. They believe market asymmetry will create selective opportunities, suggesting moderate opportunity density in specific areas.

Time Horizon

80%

Short-TermLong-Term

Decade+ (80%)

The fund emphasizes long-term compounding returns, quality without compromise approach, and positioning for AI's long-term potential. They acknowledge short-term underperformance as not unexpected and focus on delivering value over time, indicating a patient, long-term orientation.