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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Ithaka US Growth Strategy 2025 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Ithaka US Growth Strategy)

Primary Source Intelligence • Q1 2025 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

QTD-10.5%

Annualized+16.4%

Positioning StanceConstructive

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"With tariffs and DeepSeek AI disruption pressuring tech holdings. Despite semiconductor headwinds and policy uncertainty, 84% of companies beat earnings expectations."

Executive Summary

Ithaka's US Growth Strategy declined 10.5% net in Q1 2025, underperforming the Russell 1000 Growth benchmark by 30bps in a volatile quarter driven by Trump administration trade policy uncertainty. The firm's concentrated portfolio of 30 large-cap growth companies faced headwinds from protectionist measures including baseline 10% tariffs on all imports and reciprocal tariffs up to 50% on major trading partners. Top contributors included Palantir, Visa, and Uber, while detractors were led by ServiceNow, Nvidia, and Trade Desk. The DeepSeek AI model release particularly impacted semiconductor holdings by challenging GPU demand assumptions. Despite policy uncertainty reaching COVID-era levels, 84% of holdings beat earnings expectations. The portfolio demonstrated resilience with positive sector allocation effects offsetting negative stock selection. Ithaka initiated positions in Shopify, Axon, and Eli Lilly while eliminating Adobe. Management expects continued volatility but remains fully invested, taking comfort in portfolio company quality and their 16-year track record navigating market crises through focus on adaptable, high-quality growth businesses.

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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%)

High conviction demonstrated through maintaining full investment despite volatility, concentrated 30-stock portfolio, and strong language about portfolio company quality and management capabilities. Clear articulation of investment philosophy and confidence in long-term approach.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The manager acknowledges significant market volatility and policy uncertainty but maintains that companies are fundamentally strong. While noting challenging conditions, they express measured optimism about eventual return to stability and their companies' ability to navigate challenges.

Risk Appetite

10%

DefensiveAggressive

Defensive (10%)

The portfolio remains fully invested despite volatility, with the manager explicitly stating they choose to stay fully invested and focused on their mission. They initiated three new positions while eliminating one, showing selective but continued deployment.

Capital Deployment

20%

De-riskingDeploying

De-risking (20%)

Moderate deployment activity with three new position initiations (Shopify, Axon, Eli Lilly) and one elimination (Adobe). The firm explicitly states they remain fully invested and focused on their mission, indicating continued selective capital deployment despite market conditions.

Forward Guidance

43%

CautiousExpansionary

Neutral (43%)

Management expects continued volatility ahead driven by open questions around trade, inflation, and policy direction. However, they express confidence in taking prudent steps to position the portfolio for eventual return of clarity and stability.

Language Signal

5%

BearishBullish

Bearish (5%)

Language is balanced with acknowledgment of challenges but emphasis on portfolio company quality, management adaptability, and firm experience. Terms like 'great growth stories' and 'quality companies' offset concerns about uncertainty and volatility.

Perceived Risk

70%

Low RiskElevated

Elevated Risk (70%)

High perceived risk with policy uncertainty reaching COVID-era levels, significant market volatility, and management teams reluctant to make long-term decisions. The manager extensively discusses trade policy risks, tariff impacts, and semiconductor export restrictions as major concerns.

Opportunity Density

45%

ScarceAbundant

Selective (45%)

Mixed opportunity environment with 84% of holdings beating earnings expectations suggesting company-level opportunities, but broader market facing policy uncertainty and volatility. The manager notes potential leadership rotation away from Magnificent 7 could create opportunities for other names.

Time Horizon

80%

Short-TermLong-Term

Decade+ (80%)

Strong long-term orientation with focus on 'great growth stories of our day' and emphasis on companies' ability to adapt over time. The 16-year firm history and patient approach to weathering crises indicates multi-year investment horizon and compounding focus.