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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
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"The Heptagon Future Trends Fund delivered strong outperformance of 750 basis points in Q1 2026, driven by thematic tailwinds in energy and data infrastructure, while completely avoiding volatile US mega-cap tech."
The Heptagon Future Trends Fund gained 3.9% in Q1 2026, outperforming its MSCI World Index benchmark by 750 basis points. The fund's core investment thesis focuses on combining top-down thematic research with fundamental bottom-up analysis to build a concentrated, pan-thematic portfolio of high-quality global businesses. Key performance drivers during the quarter included secular trends in alternative energy, power, and data infrastructure, with standout contributions from Cheniere Energy and ARM Holdings. The portfolio benefited significantly from its zero exposure to US mega-cap tech and software companies, which faced valuation pressures during the quarter. While some holdings like DoorDash and Novo Nordisk lagged due to disappointing forward guidance, the manager remains highly optimistic about the massive structural runways of its 12 active themes. Portfolio positioning remains stable, with minimal trading activity and a continuous focus on undervalued, cash-generative compounders.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
The manager runs a highly concentrated 25-stock portfolio with over 95% active share and more than 50% of capital in the top 10 positions. Specific top-five weights are explicitly shared and discussed in detail.
Growth Outlook
The manager is highly optimistic about the structural growth runways of the fund's core themes. However, they acknowledge the reality of geopolitical conflicts in the Middle East and expect broad index headwinds due to high mega-cap tech concentration.
Risk Appetite
The fund remains fully invested in 25 concentrated positions across 12 themes with zero hedges. They added a major new position in Siemens Energy, indicating strong risk appetite for high-quality, long-term growth compounders.
Capital Deployment
The portfolio has remained almost unchanged since the start of the year. The single new addition (Siemens Energy) was funded strictly by reducing weightings in other existing holdings, keeping net capital deployment neutral.
Forward Guidance
The manager states they made 'minimal changes to the portfolio' during the quarter and traded on only two days. They maintain a continuous improvement mindset but show no urgency to aggressively rotate or deploy new cash.
Language Signal
The letter uses heavily positive terms like 'optimism', 'long runways', 'undervalued', and 'strong financial position'. It balances this with discussions of 'volatility', 'drawdowns', and 'disappointing guidance' in select detractor holdings.
Perceived Risk
The manager clearly highlights Middle Eastern geopolitical conflict and associated economic headwinds. However, they treat market drawdowns as normal occurrences that should not cause panic.
Opportunity Density
While they made minimal portfolio adjustments, the manager views the average business in the fund as 35.3% undervalued. They see abundant structural growth potential across all 12 of their active themes.
Time Horizon
The fund focuses on secular themes with multi-decade structural runways (e.g., cloud workloads at 30% penetration, AI spend at 1%). They explicitly advocate patience, arguing against panic in short-term drawdowns.
