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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Rothschild & Co LongRun Equity Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"LongRun Equity underperformed in Q2 as narrow market breadth favored AI stocks while quality businesses saw multiple compression despite earnings delivery. The fund added Amphenol and Nvidia, viewing AI disruption fears as creating opportunities in fundamentally strong businesses with intact moats."
LongRun Equity returned 7.6% in Q2 2026 versus 15.8% for the benchmark, bringing YTD performance to -3.7% versus +14.3% for global equities. The underperformance reflects narrow market breadth concentrated in AI-related stocks, while quality businesses outside this cohort experienced multiple compression despite continued earnings delivery. The fund believes assumptions that AI will erode competitive moats are overly broad, and many quality businesses can actually widen their moats through AI implementation. Top contributors included ASML and GE Aerospace, benefiting from semiconductor capacity buildout and defense momentum. Detractors included Intuit and Tencent, impacted by revenue misses and China macro concerns respectively. The fund added two new positions: Amphenol, a mission-critical interconnect supplier benefiting from AI data center buildout, and Nvidia, which has de-rated despite becoming fundamentally stronger. The portfolio maintains strong financial metrics with 31% operating margins, 63% ROIC, and 10% cross-cycle sales growth. Management expects a market rotation to benefit quality stocks and projects low double-digit forward returns based on attractive valuations and robust business fundamentals.
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