What the Managers Are Saying

The Ithaka Group

• Outperformed Russell 1000 Growth by 570 bps in 3Q26 (6.7% vs. 0.9%), driven by strong stock selection in Technology, Consumer Discretionary, and Financial Services, with top contributors including CrowdStrike (+1.5 ppt impact), Microsoft (+1.5 ppt), and ServiceNow (+1.3 ppt).
• Initiated new positions in Micron (MU) and Sandisk (SNDK), while exiting Oracle (ORCL), reflecting a strategic shift toward high-growth memory and storage beneficiaries of AI infrastructure demand amid tightening capital markets.
• Notable detractors were Credo Technology (–0.7 ppt), Lam Research (–0.7 ppt), and Vertiv Holdings (–0.6 ppt), all pressured by sector-wide valuation de-rating and near-term spending concerns in AI-related capex despite solid fundamentals.
• Maintains conviction in high-quality, durable growth companies with strong balance sheets and pricing power, emphasizing resilience amid a higher-for-longer rate environment (10-year yield at 5.25%) and renewed Fed tightening (25 bp hike in September).
• Macro outlook centers on three key pressures: sustainability of hyperscaler capex, elevated cost of capital constraining long-duration valuations, and potential for legislative gridlock post-2026 midterms providing corporate stability.

Palm Valley Capital Fund

• Maintains a highly defensive stance with 75.5% of assets in Treasury bills; equity-only portfolio returned 4.8% in Q3, outperforming small-cap benchmarks which declined sharply (S&P SmallCap 600: -7.93%).
• Initiated new positions in Gentex (GNTX), Avista (AVA), and Smithfield Foods (SFD); exited Utz Brands (UTZ) post-acquisition announcement and rotated in/out of Clorox (CLX) opportunistically; trimmed WH Group (WHGLY) at higher prices.
• Top detractors in Q3 were Rayonier (RYN), Flowers Foods (FLO), and Reynolds Consumer Products (REYN); top contributors were Kelly Services (KELYA), ManpowerGroup (MAN), and Amdocs (DOX).
• Macro outlook is cautious, highlighting extreme valuations across tech, AI-driven asset inflation, and a K-shaped economy masked by official statistics; concerned about long-term consequences of policy-driven asset price support and understated inflation eroding real wages.
• Believes current market dispersion creates opportunities in overlooked small caps with strong cash flows and balance sheets (e.g., GNTX, AVA, SFD), while remaining skeptical of unprofitable AI plays and passive flows amplifying large-cap dominance.

WS Lindsell Train UK Equity Fund

• Maintains concentrated portfolio of high-quality, cash-generative businesses with a strong overweight in Data/Software/Platform names (RELX, Experian, Sage, LSEG, Rightmove), which drove a 10.8% absolute return in October—the second-best monthly performance since inception—and a record relative return versus the FTSE All-Share.
• No notable new positions added or exited; portfolio remains tightly held at ~30 stocks, with top holdings unchanged—RELX (9.96%), Experian (9.94%), LSEG (9.92%), Sage (9.88%), Diageo (9.28%), and Unilever (8.95%)—reflecting conviction in long-term AI tailwinds and resilient consumer staples.
• October’s strong performance (+10.8% fund vs. +1.1% benchmark) stemmed from a sharp rebound in under-owned UK digital champions, particularly data and software firms benefiting from lower AI compute costs and increasing enterprise adoption, countering prior "AI loser" narrative.
• Manager believes recent rally is not just a short-term "anti-NASDAQ" trade but an inflection point, citing RELX and LSEG’s strong trading updates: RELX saw Legal division growth double to 10% on AI tool adoption, while LSEG reported 95% AI uptake among top clients and cross-selling of data sets, reinforcing AI as a growth accelerator.
• Outlook remains constructive on UK digital infrastructure and consumer staples: views AI as a multi-year tailwind for portfolio companies with proprietary data, while also anticipating renewed investor interest in steady growers like Diageo and Unilever if AI-driven tech volatility persists.

Spheria SMID Cap Fund

• Maintained underweight in materials (notably avoiding small-cap resources) and overweight in healthcare (Healius +15%) and industrials (Cleanaway +15%), driving outperformance of 3.2% vs. benchmark in October despite global equity volatility.
• Exited position in Tuas (TUA.ASX, -25%) due to deteriorating fundamentals; initiated new positions in Supply Network (SNN.ASX) and increased allocation to Technology One (TNE.ASX) on strong SaaS margin visibility.
• Fund returned 0.6% for October (vs. benchmark -2.6%), with 1-year return of 1.5% vs. -7.7% for index, supported by stock-picking in consumer discretionary (Treasury Wine +13%) and avoiding high-multiple tech.
• Manager remains cautious on AI-driven capex boom, citing unsustainable free cash flow at major U.S. tech firms and reduced appetite for speculative IPOs (e.g., Nvidia-backed Firmus withdrawal).
• Macro outlook is risk-averse: expects higher-for-longer rates (RBA cash rate now 4.85%) to pressure valuations, particularly in rate-sensitive small-cap segments; favoring quality businesses with pricing power and strong balance sheets.

Spheria Global Smaller Companies Fund

• Maintains disciplined, valuation-conscious stance with underweight to AI hardware; October outperformance (+2.1% vs. benchmark -0.7%) driven by stock-picking in Industrials and selective exposure to resilient small caps, despite trailing benchmark over 1- and 3-year horizons.
• Trimmed position in SharkNinja (SN US) after +15% month and valuation rerating, though remains top holding (5.0%); exited Sprouts Farmers Market (SFM US) following weak comp sales and margin reset plans despite long-term conviction.
• Top contributors: SharkNinja (SN US), Rightmove (RMV LN), and Tradeweb Markets (TW US); key detractors: Applied Industrial Technologies (AIT US), Sprouts Farmers Market (SFM US), and Accelleron Industries (ACLN SW).
• Macro outlook cautious on policy-driven markets; sees election results and regulatory shifts (e.g., data center scrutiny) repricing sectors overnight, reinforcing preference for self-funding, high-ROIC businesses insulated from political risk.
• Remains opportunistic on quality tech but avoids overpaying for cyclical hardware; portfolio positioned for resilience with 4.5% cash and diversified sector exposure led by Industrials (23.1%) and Consumer Discretionary (15.6%).

Spheria Australian Smaller Companies Fund

• Fund outperformed its S&P/ASX Small Ordinaries benchmark in October (-2.4% vs -6.4%), driven by an underweight to materials and strong stock selection, with top contributors including Healius (HLS.ASX, +15%), Orora (ORA.ASX, +9%), and Karoon Energy (KAR.ASX, +10%).
• Notable underweights detracted from performance: absence of Data#3 (DTL.ASX, +33%) and Pinnacle Investment Management (PNI.ASX, +16%) were key misses, reflecting a cautious stance on high-momentum IT and financial services names.
• Portfolio remains concentrated in mid-cap industrials and consumer staples (top 5 holdings: Supply Network 5.4%, Bapcor 5.3%, Perpetual 4.5%, Orora 4.0%, New Hope 3.7%), with minimal exposure to tech and energy; cash held at ~7%.
• Manager highlights growing skepticism toward AI-driven capital spending globally, citing negative free cash flow at major U.S. tech firms and the collapse of Nvidia-backed Firmus’ A$44B IPO as signs of froth unwinding; this has negatively impacted small-cap growth and IPO sentiment in Australia.
• Outlook remains cautious amid tighter monetary policy (RBA cash rate now at 4.85%, highest since 2008) and weak gold prices pressuring small-cap resources; fund positioned defensively with a focus on quality balance sheets and free cash flow generation.

Spheria Australian Smaller Companies Fund

• Outperformed benchmark by 3.2% in October (fund: -3.3% vs index: -6.4%), driven by underweight to materials and strong stock selection; top contributors included Healius (+15%), Orora (+9%), and Karoon Energy (+10%).
• Notable absences weighed on performance: missed upside from Data#3 (+33%), Pinnacle Investment Management (+16%), and AUB Group (+11%); no new positions disclosed, but continued underweight in AI-exposed and resource stocks.
• Fund returned -1.0% over 3 months and -13.1% over 1 year, but maintains long-term outperformance with 12.8% 3-year p.a. return vs 10.0% for benchmark; current portfolio concentrated in industrials (20.5%), financials (10.4%), and real estate (9.5%).
• Macro outlook remains cautious amid tighter monetary policy—RBA raised rates to 4.85%, the highest since 2008—while global AI-driven tech spending surge (e.g., Google, Amazon, Meta) faces scrutiny over ROI, spilling into local small-cap sentiment and derailing IPOs like Nvidia-backed Firmus.
• Portfolio positioning favors resilience over thematic bets; maintains 0–20% cash flexibility and avoids high-multiple AI/resource names, focusing on fundamentally sound businesses in defensive or cash-generative sectors.

Spheria Australian Microcap Fund

• Maintains overweight in healthcare and consumer discretionary, underweight in materials; strong relative performance (-2.7% vs. benchmark -6.4% in October) driven by stock-picking in non-resource sectors despite broad market weakness.
• Added new position in AI-driven data infrastructure play *Firmus* (FMUS.ASX) pre-withdrawal; exited *Galan Lithium* (GLN.ASX, -30%) and reduced exposure to underperforming small-cap miners including *Metro Mining* (MMI.ASX, -38%).
• Top contributors in October: *Koala Company* (KOA.ASX, +18%), *Healius* (HLS.ASX, +15%), and *XRF Scientific* (XRF.ASX, +17%); largest drag from *SKS Technologies* (SKS.ASX, -44%) due to AI-capex-related sell-off.
• Remains cautious on AI-themed microcaps amid soaring capex and questionable ROI; concerned by RBA’s 5th rate hike (cash rate now 4.85%) and its impact on growth-sensitive small caps.
• Outperformed benchmark over 3Y, 5Y, and 7Y horizons (11.0%, 5.9%, 11.7% p.a. respectively), with persistent outperformance attributed to disciplined sector rotation and avoidance of speculative resource IPOs.

SageOne Investment Managers SLMP

• Maintains overweight positioning in large-cap stocks (~65% of portfolio), recently consolidating holdings from 25 to 22 names; increased allocation to platform businesses (now ~20% of portfolio), including major positions in Blinkit (BLINKIT.IN) and an unnamed e-commerce/financial services platform, citing strong operating leverage and scalability.
• Exited or reduced positions in traditionally defensive sectors including IT and FMCG due to structural headwinds (AI disruption, D2C competition); notable underperformers tied to a concentrated three-month period (Nov 2025–Jan 2026) involving stock selection errors, though no specific tickers disclosed.
• Delivered 11% return over the past 6 months and ~15% three-year CAGR, outperforming the Nifty 50 and exceeding the 3–5% alpha target post-fees; long-term return aspiration remains 16–18% annualized over 4–5 years, supported by resilient earnings and improving fundamentals.
• Bullish medium- to long-term outlook driven by improving earnings momentum (portfolio expected 25% EPS CAGR) and attractive large-cap valuations—Top 100 stocks now trade at 29x P/E, below 10-year average of 30x and well off 45x highs from two years ago—while midcaps remain relatively expensive.
• Expects FIIs to return as macro risks (oil, geopolitics) are viewed as cyclical; advocates using volatility to accumulate high-conviction names, emphasizing a stock-picker’s market where fundamental research differentiates sustainable growth from value traps.

Rhenman Healthcare Equity L/S

• Maintains overweight in pharmaceuticals and healthcare services, reducing exposure to biotech; rotation into defensives and strong large-cap pharma performance drove October gains, with the fund up 6.8% (IC1 EUR) and 3.4% (RC1 SEK).
• Top contributors were Genmab (GNMSF) on positive phase III data for petosemtamab in head and neck cancer and Rina-S in ovarian cancer, and Eli Lilly (LLY) on raised full-year guidance for Mounjaro and Zepbound; detractors included Iovance (IOVA) post-disappointing lung cancer data and Axsome (AXSM) on weak Auvelity prescription trends.
• Portfolio shifted slightly from healthcare services to medtech and pharma; Medtronic (MDT) emerged as a top long position following FDA approval and strong clinical data in cardiac ablation.
• Earnings season has exceeded expectations overall, especially among large-cap holdings, with solid innovation and sales growth; small- and mid-cap companies yet to report, but manager anticipates broadening strength.
• Macro outlook cautious amid election-driven healthcare policy risks and potential Trump-related volatility; however, sector fundamentals remain robust, with 2027 earnings growth for profitable healthcare firms projected at 29%, on par with Nasdaq 100.

Protean Funds Partner Letter (Multiple Strategies)

• Protean Funds maintained a diversified, strategy-specific positioning across its mandates, with the Small Cap fund outperforming its benchmark by 2.9% in October (up 2.7% vs. -0.2% for CSRXN SEK), while Protean Select ran at a 35% beta-adjusted net exposure, tactically adjusting to AI-theme volatility.
• New position initiated: Ratos (ticker: RATOS SDB), a Swedish conglomerate, added to the Small Cap portfolio due to strong operational performance at its subsidiaries (Diab, HL Display, Presis Infra) and potential for follow-on IPOs post-Sentia’s successful listing; exited positions not explicitly named, but spread trades were monetized in serial acquirers (short Lifco/Lagercrantz, long Storskogen/Sdiptech).
• Performance highlights: Protean Small Cap up 91.6% since June 2023 launch vs. 37.0% for benchmark; Protean Aktiesparfond Norden up 40.7% since April 2025 (vs. 27.0% for VINX); Protean Aktiesparfond Global up 3.5% since inception (Sept 2026) vs. 0.1% for MSCI World Net Return SEK; Protean Select returned 0.8% in October.
• Macro outlook reflects skepticism toward AI-driven consensus in markets, with concern that AI-generated research and homogenized inputs (earnings transcripts, filings) are eroding differentiation and creating crowded trades; manager emphasizes on-the-ground due diligence (e.g., site visits to AAK, Loomis, robot taxis in Shanghai) to uncover non-consensus insights.
• Market positioning increasingly focused on structural shifts: long Novonesis (dairy cultures benefiting from GLP-1-driven protein demand) and short AAK (exposed to declining indulgence categories like chocolate and bakery), while maintaining balanced AI exposure via long Mycronic and short Wärtsilä.

Pender Corporate Bond Fund

• The Pender Corporate Bond Fund returned -1.1% in October, underperforming broader credit benchmarks due to concentrated losses in tech (notably Wolfspeed Inc. (WOLF) convertibles), EV names (Lucid Group (LCID), Rivian (RIVN)), precious metals, Brazil credits post-election, and Borr Drilling Ltd. (BORR) following a rig tragedy; however, over 60% of holdings were positive, led by strong gains in Northern Oil and Gas (NOG) +5%, PAR Technology (PAR) converts +10%, Canadian Utilities (CU) preferreds +9%, and long-dated BHP Billiton (2042) bonds +3%.
• Notable positions added or maintained include high-coupon, deeply secured bonds such as Rivian’s 12% first lien notes (backed by $17B market cap, $5B cash) and Trulieve Cannabis (TRUL) 10.5% 1L notes (cash-covered, >5x interest coverage); exited or reduced exposures not specified, but BORR remains held despite incident.
• Manager remains constructive despite short-term pain, citing potential catalysts including rate relief (anticipating reversal in "higher-for-longer" trend due to AI boom fading, G7 debt pressures, and 2027–2028 refinancing risks), re-rating opportunities in deeply discounted sectors (miners AG, DML; SaaS names VERX, ZS; China credits BABA, NIO, FINV), and company-specific drivers like IPOs (MCDIF, Cineworld), earnings rebounds (EVH, NOG), customer wins (PAR), asset sales (Spirit Airlines), and legal settlements (Argentina GDP warrants).
• Fund positioned with a 6.20% yield to maturity, 4.84% current yield, and 3.39-year duration; 8.9% in near/in-the-money convertibles (excluded from yield calc), 1.83% in discounted credit instruments, and 2.1% cash, reflecting selective risk-taking amid elevated market dispersion.

Malborough Marlborough Global High Yield Fund

• Maintains defensive stance focused on upgrading portfolio quality and reducing pro-cyclical exposure amid elevated macro risks; prioritizing issuers with strong competitive positions, resilient cash flows, and manageable leverage.
• Added U.S. new issues CleanSpark (CLSPRK), SoftBank (SOFTBK), and Sysco (SYY), and European issues Derichebourg (DBGFP) and Guala Closures (GCLIM); exited Great Canadian Gaming (GCCN), Helix (HI), TDCDC, and Urbaser (URBASER) post-redemption following Blackstone/EQT acquisition.
• Fund returned -2.4% (GBP hedged) in September, underperforming the Bloomberg Global High Yield Index (-2.3%) by 5 bps, due to overweight in gaming and selection drag in European capital goods and U.S. insurance, partially offset by underweights in lagging financial sub-sectors.
• Expects further spread widening in high yield amid rich valuations despite recent widening, with rising dispersion across credits; sees opportunity in idiosyncratic dislocations and favors disciplined security selection over market beta amid evolving credit cycle and persistent inflation pressures.
• Macro outlook centers on "higher for longer" rates driven by sustained inflation from elevated energy prices and central bank hawkishness (Fed, ECB, BoJ, RBA tightening); views energy supply disruptions as structural, not transitory, supporting higher-for-longer rate assumptions globally.

Lindsell Train Global Equity Fund

• Maintains concentrated, high-conviction portfolio of 20–35 global equities with low turnover; sector positioning remains heavily tilted toward Communications Services (32.1%) and Consumer Staples (18.9%), with notable underweights in IT and Financials relative to benchmark.
• Exited partial position in FICO following regulatory-driven share price decline (down >50% YTD) due to FHFA’s promotion of VantageScore 4.0; added to RELX, LSEG, and Thermo Fisher during the quarter—top contributors in October included RELX, LSEG, and Intuit.
• Fund returned +6.2% in October vs. MSCI World at -1.6%, driven by strong stock-specific performance, though YTD return remains weak at -5.1% (vs. +11.3% for benchmark); long-term annualized underperformance persists over 3yr (-14.0%) and 5yr (-9.4%) horizons.
• Remains constructive on portfolio companies’ fundamentals, citing ~9% forecast GBP EPS growth for 2026; believes sentiment-driven undervaluation in holdings like Intuit, UMG, and FICO presents rerating potential despite near-term headwinds.
• Cautious on market dynamics, highlighting risks from passive index flows amplifying momentum and sentiment swings; sees opportunity in “neglected” compounders facing temporary pressures but maintaining strong underlying business momentum.

Horizon Kinetics Equity Opportunities Fund, LP

• Maintains conviction in SandboxAQ (private holding) as a core strategic position, emphasizing rapid commercialization of its physics-based AI models (LQMs) and expansion into scalable, self-service distribution via AWS, Google Cloud, and Anthropic’s Claude platform.
• Launched and monetized new products AQCat (high-throughput catalyst screening) and AQPotency (structure-free virtual screening), now available on AWS Marketplace and Claude via MCP, enabling pay-as-you-go access for researchers and marking a shift from bespoke to scalable revenue.
• Secured $500M U.S. Department of Commerce CHIPS R&D award to develop domestic alternatives to foreign-controlled semiconductor materials, including PFAS-free process chemicals, rare earth-free magnets, and non-lithium batteries—strengthening national security positioning and de-risking supply chains.
• Entered five-year, $50M commercial partnership with Apheris to integrate AQPotency into 15+ global pharma pipelines (including AstraZeneca, Sanofi, J&J), leveraging federated learning to scale deployment while preserving data privacy.
• Expanded enterprise AI footprint with open-source launch of Switch, enabling AI agent collaboration in Slack, Teams, and Discord without vendor lock-in; also advanced royalty-bearing catalyst development deal with Saudi Aramco for CO2 conversion technologies.

Forager International Shares Fund

• Maintains a concentrated, value-oriented portfolio tilted toward small and mid-cap stocks (68.7% in sub-$20bn market cap), recently rebalancing toward more defensive positions by trimming high-conviction software holdings and adding to infrastructure-advantaged industrials.
• Exited Wix.com (NASDAQ:WIX) and reduced Sage Group (LSE:SGE) after strong run-ups; initiated new positions in CRH (NYSE:CRH) and increased stake in Tetra Tech (NASDAQ:TTEK), citing long-term infrastructure tailwinds.
• Fund returned 3.3% in October (vs. benchmark’s 0.1%), outperforming amid a broad rally in equal-weighted markets, though software gains were partially offset by losses in Latin America following Lula’s surprise re-election in Brazil.
• Portfolio remains exposed to political and currency risk after PicPay (NASDAQ:PICS) fell 16% post-election; now holds 14.9% cash as of October 31, 2026, reflecting selective opportunities in current market.
• Outlook cautious on large-cap tech dominance; favors under-the-radar, cash-generative businesses outside market cap-weighted indices, with structural confidence in global infrastructure and industrial resilience.

Forager Australian Shares Fund

• Maintains disciplined value-oriented stance, focusing on undervalued ASX-listed stocks with 11.3% cash position providing dry powder; portfolio remains concentrated in mid-cap stocks ($200M–$1B) at 45.8% exposure.
• Added new position in OFX Group (OFX) following sharp 65% sell-off after bid collapse; exited Tuas (TUA) on regulatory risk following Singaporean "show cause" notice threatening Simba Telecom’s licence.
• Fund fell modestly by 1.5% in October vs. Small Ordinaries’ 6.4% drop, outperforming year-to-date despite 1-year return of -24.3%; 7-year CAGR of 7.0% remains above benchmark.
• Remains constructive on non-bank lenders: Wisr (WZR) and Plenti (PLT) show resilient credit metrics and low P/E valuations despite rate uncertainty.
• Cautious on small-cap resources amid sector-wide volatility but sees selective opportunities in beaten-down names with strong balance sheets and asset value, such as OFX.

Cedar Creek Partners

• Maintains a fully invested, concentrated value-oriented stance with 93.7% in long positions and no shorts; top 5 holdings represent over half the portfolio (53.8%), reflecting high conviction in fundamental undervaluation and long-term compounding potential.
• Exited positions in Meta Platforms (META) and Netflix (NFLX) during the quarter, citing elevated valuations post-runup; initiated new position in Rivian Automotive (RIVN) at current levels, viewing it as an asymmetric bet on EV market share and margin improvement.
• Delivered strong preliminary October 2026 return of 2.4%, contributing to YTD gain of 22.7%—outperforming SPY’s 11.7%—with robust stock selection in tech and healthcare driving results; long-term CAGR since 2006 remains at 15.2% net.
• Remains optimistic on U.S. equities over multi-year horizon but expects near-term volatility due to elevated valuations and policy uncertainty; continues to prioritize business quality and management strength within small- and mid-cap names trading below intrinsic value.
• Cash levels remain minimal, indicating sufficient opportunity set; manager Tim Eriksen emphasizes discipline in valuation gaps over market timing, staying true to the fund’s concentrated, bottom-up value approach.

CDT Capital VNAV

• Maintains conviction in AI/semiconductor long-term thesis but avoids "at any cost" speculation; remains long in foundational subsectors including semiconductor design, power generation, and hyperscaler data centers while actively avoiding overhyped SI/AI names showing unsustainable capital burn like GOOGL, META, and INTC, which declined sharply post-earnings (-18.3%, -15.3%, -45.3% respectively).
• Exited position in Option Care Health (OPCH) following acquisition announcement by CD&R and McKesson at over 20x earnings, a significant multiple expansion from its sub-10x earnings trough earlier in the year when CDT added; initiated new position in Global Payments (GPN), now in acquisition talks with CD&R and GTCR, with stock rallying on speculation and believed to offer exceptional value below $150/share.
• October performance strong (+7.01%) amid broad sector rebound (9 of 11 S&P sectors up +4.76% avg) despite flat S&P 500 (-0.87%), showcasing strategy effectiveness in uncorrelated, value-driven investing; YTD return of +14.55% vs. S&P 500’s +11.77%, with downside protection evident in 2022 bear market (CDT: -2.3% low vs. S&P: -23.9%).
• Macro outlook highlights structural market dysfunction: >50% of trading volume driven by HFT/algorithms and ~52% market share held by passive ETFs, both indifferent to fundamental value; this erosion of fundamental analysis creates durable edge for active value investors, as "value discovery" is increasingly abandoned in favor of "price discovery."
• Believes current market dislocation—driven by concentration in mega-cap AI trades and speculative capital allocation—creates asymmetric opportunities in overlooked sectors; remains focused on identifying undervalued businesses with strong fundamentals, as demonstrated by recent portfolio exits and potential take-private activity.

BlueBox Global Technology Fund

• Maintains conviction in long-term outperformance of the IT sector, driven by the "Direct Connection" theme—technology’s integration into real-world industries—while cautioning against overhyped AI capex cycles; portfolio remains benchmark-agnostic and focused on profitable tech enablers across $10B–$300B market caps.
• Added Coherent (COHR) and SAP (SAP.DE) during October; exited no positions but trimmed semiconductor holdings to fund new buys—Coherent was poorly timed amid AI capex sell-off, falling 38%, while SAP strengthens software diversification amid concerns over agentic AI disruption.
• Fund declined 7.1% in October (vs. -8.0% for S&P Global BMI IT Index), underperforming year-to-date (20.3% vs. 25.1%) due to semiconductor drag, particularly from Coherent (-38%), ARM Holdings (-29%), Lam Research (-27%), and Applied Materials (-24%).
• Leadership shifted from semiconductors to software in mid-October: software names Intuit (+24%), Autodesk (+19%), Trimble (+14%), and Veeva Systems (+10%) led gains, while Texas Instruments (+8%) was a rare semiconductor bright spot.
• Outlook acknowledges near-term AI growth deceleration from unsustainable >30% expectations to a more realistic 15–20%, driven by supply constraints; believes correction is healthy and reinforces focus on durable software and infrastructure enablers rather than hyperscaler capex.

Alaska Asset Management Fund Family

• Maintains overweight in Brazilian equities with largest positions in non-cyclical consumer and financial sectors; reduced exposure to financials post-election due to heightened political uncertainty following Lula’s victory and concerns over fiscal policy direction.
• Exited long positions in key financial stocks (ITUB4, BBAS3) amid market correction in late October; initiated selective buys in energy names (UGPA3, RAPT4) to hedge against geopolitical risks in the Middle East and rising oil volatility.
• Fund performance lagged benchmark, with long-only equity strategies (e.g., Alaska Institucional: -20.9%) underperforming Ibovespa (-9.88%) due to negative delta in financials and dollar short position drag; Alaska Range down -3.06% on directional losses and negative FX carry.
• Macro outlook turned cautious: expects elevated volatility in Brazilian assets through year-end driven by uncertainty around fiscal policy and economic team appointments; sees risk of BRL depreciation and rising local yields if fiscal credibility weakens.
• Globally, anticipates sticky U.S. inflation and prolonged higher-for-longer rates; remains underweight U.S. tech valuations amid rich multiples and energy cost pressures, favoring commodity-linked hedges and selective EM exposure.

Past issues