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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
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"Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused positions in Seagate and Lam Research while reducing cloud exposure."
Select Growth underperformed in Q1 2026 as AI-driven market dispersion and geopolitical tensions created headwinds for growth equities. The portfolio's emphasis on higher-growth, asset-light businesses faced rotation toward more capital-intensive industries perceived to have lower AI disruption risk. However, the fund views this sell-off as increasingly indiscriminate, maintaining conviction that businesses with network effects, infrastructure control, and embedded workflows will harness AI as an accelerator rather than face displacement. Portfolio activity centered on evolving AI infrastructure exposure toward physical beneficiaries, initiating positions in Seagate Technology and Lam Research while reducing cloud hyperscaler exposure. The fund believes memory is emerging as the key bottleneck to scaling AI systems, expecting exponential demand growth coupled with constrained supply to drive favorable pricing. Top contributors included Carpenter Technology, Taiwan Semiconductor, and Quanta Services, while detractors were AppLovin, Microsoft, and Shopify. With valuations compressed across secular growth businesses, the fund sees attractive setup for the next five years as growth-adjusted valuation premium reaches lowest level since 2009.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
High-conviction positioning: Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
Growth Outlook
Market outlook remains high conviction: Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
Risk Appetite
Risk appetite posture is very low conviction: Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
Capital Deployment
Manager actively deployed capital into high-conviction opportunities. Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
Forward Guidance
Forward guidance signal: Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
Language Signal
Tone analysis indicates very low conviction language: Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
Opportunity Density
Opportunity density index indicates moderate conviction actionable entry points. Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
Time Horizon
Investment time horizon reflects a moderate conviction orientation. Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused pos...
