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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Ithaka US Growth Strategy 2023 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Ithaka US Growth Strategy)

Primary Source Intelligence • Q1 2023 Letter Analysis

Ithaka US Growth Strategy Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Ithaka US Growth Strategy. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+16.5%

Positioning StanceConstructive

GeographyUS

Digest Analysis

Quick Take

"Ithaka's concentrated growth strategy outperformed by 740bps in Q1 2023, driven by strong semiconductor positioning amid AI excitement and solid healthcare stock selection."

Executive Summary

Ithaka's concentrated growth strategy delivered strong outperformance in Q1 2023, gaining 21.8% gross versus 14.4% for the Russell 1000 Growth benchmark. The 740 basis points of outperformance came primarily from stock selection, with 16 of 27 holdings outperforming. Technology sector positioning was particularly effective, with semiconductor overweights significantly outperforming Software-as-a-Service holdings. Key contributors included NVIDIA, which benefited from AI excitement around ChatGPT and strong earnings, Salesforce following activist-friendly initiatives, and Microsoft on OpenAI investment enthusiasm. The quarter saw banking sector turmoil with Silicon Valley Bank and Signature Bank failures, highlighting interest rate risks from the Fed's aggressive tightening cycle. Despite macro uncertainties, Ithaka initiated positions in Intuit and Snowflake while exiting Burlington Stores and Qualcomm. The firm maintains its philosophy of staying fully invested in high-quality growth companies, acknowledging the futility of macro forecasting while focusing on individual company fundamentals and long-term wealth creation for clients.

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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

78%

CautiousHigh

High Conviction (78%)

Portfolio holds maximum 35 positions with current 27 holdings, representing concentrated approach. Manager names specific positions with detailed thesis explanations and sizing commentary. Strong conviction evident through 'owning, in size' language and willingness to add new positions during volatility.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager acknowledges significant macro challenges including banking failures and Fed policy uncertainty, but frames these as manageable while noting strong individual company performance. Mixed outlook with cautious optimism.

Risk Appetite

75%

DefensiveAggressive

Aggressive (75%)

The portfolio remains fully invested with active position additions (Intuit, Snowflake) and maintains concentrated exposure to growth themes. Clear risk-on positioning despite macro headwinds.

Capital Deployment

30%

De-riskingDeploying

De-risking (30%)

Manager initiated two new positions (Intuit, Snowflake) while eliminating two others (Burlington, Qualcomm), representing rotation rather than net deployment. Turnover increased but no cash level changes mentioned, indicating selective rebalancing.

Forward Guidance

50%

CautiousExpansionary

Neutral (50%)

Manager explicitly states intention to stay fully invested and focused on great growth stories, but acknowledges macro forecasting futility. Constructive deployment bias with measured confidence.

Language Signal

40%

BearishBullish

Balanced (40%)

Language includes positive terms like 'great growth stories,' 'strong performance,' and 'outperformance' balanced against risk discussions of banking failures and Fed challenges. Moderately bullish overall tone.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

Significant discussion of banking sector failures, Fed policy risks, and interest rate impacts on bond portfolios. Manager identifies specific systemic risks but doesn't characterize them as insurmountable threats.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

Manager found attractive opportunities to initiate two new positions and describes 80% of holdings beating expectations. Strong individual company performance suggests good opportunity set despite macro challenges.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

Strategy explicitly focused on 'long-term growth of capital' with emphasis on owning 'great growth stories' for wealth creation. Multi-year thesis orientation with willingness to hold through short-term volatility, though some catalyst dependency noted.