August 2025

Hi {{first_name}}

The fund returned +2.3% net of fees in August, while holding 60% cash and a Nasdaq hedge in place. It’s early, but the first two months are running at 34% annualised.

We run a concentrated portfolio of high conviction ideas, cutting losers quickly and letting winners compound. Our focus is on quality businesses with durable growth drivers, uncovered through deep research and AI analytics, with the Portfolio Manager investing alongside clients.

The fund is long biased with flexibility to short for hedging and risk management. We hold 5 to 20 positions sized by conviction and risk/reward, driven by research that blends fundamentals with proprietary AI tools to uncover catalysts, growth themes, and market dislocations.

Markets are trading on high headline multiples, but the real story is the earnings resilience and technology shift already underway. AI is not a future theme - it is reshaping margins and industry structures now. Consensus in many companies we look at still underestimates both the speed and the scale of this change.

Policy settings are adding fuel. In the US, the Trump administration is willing to “run it hot,” tolerating higher inflation to drive growth and inflate the debt away. The Fed is pivoting to support the labour market with rate cuts on the horizon as conditions soften, while China is showing the first signs of stabilisation after years of deleveraging. We are positioned accordingly.

That said, short term participation looks stretched: retail flows are elevated, put/call ratios are low, and CTA (systematic trend following) positioning is maxed out. A pullback would be healthy, resetting expectations and creating better entry points.

Below is the portfolio’s sector allocation. Alphabet is officially classified under Communication Services, but we treat it a technology investment

The equities portfolio is predominantly allocated to large, liquid global companies, with 84% of exposure in stocks valued above $10b. We also hold a small allocation (5%) to micro caps under $300m, which is discussed in the contributors section below.

We continue to invest gradually. We are not rushing, focusing on only the best ideas with 60% cash and net exposure of only 23% at month end. Our top holdings are Alphabet, Reddit and UnitedHealth.

Alphabet is emerging as the clear leader in AI with a full stack advantage: it controls the infrastructure (TPUs, data centres, and cloud), the platforms (Google Cloud, Android, YouTube), and the applications (Search, Workspace, Gemini). Each layer reinforces the others creating a defendable earnings stream. The company is moving quickly, supporting steady earnings growth, and the large ecosystem means it can monetise AI more broadly than competitors. Our entry point is marked by the blue arrow below. With the stock now at our profit target, we have lifted the stop loss to the 20-day moving average (green line) to lock in further profits.

Reddit is one of the most important data sources for large language model training. The company has signed licensing deals with Google and OpenAI, with data licensing revenue rising 8x in a year. Alongside this, advertising growth remains strong, with recent results showing revenue up, gross margins above 90%, and EBITDA starting to scale up. We continue to hold.

We entered UnitedHealth after a 60% drawdown when it was fundamentally oversold. It is the largest health insurer in the US, with a strong services arm in Optum. Soon after we bought, Berkshire Hathaway disclosed a new position, which helped push the stock higher. We continue to hold on valuation grounds.

We also hold selective shorts in two overpriced Nasdaq companies. They are both AI beneficiaries, but too expensive. These provide downside protection if the market pulls back.

The top contributors to performance included Reddit, Alphabet, Loyal Metals and UnitedHealth.

Loyal Metals is an emerging copper explorer that gained 60% on our entry price, highlighting the flexibility of a smaller, nimble fund. AI is driving a wave of infrastructure spend, and commodities are the raw fuel behind it. Our preferred exposure to this theme is copper, given its central role in electrification, data centres, and the build out of AI infrastructure.

Our hedging strategy also contributed positively to monthly performance.

he biggest detractors were AMD, Tempus AI, and Wisetech. All three were sstopped out, preserving prior gains in AMD and containing losses elsewhere. We re-entered Tempus AI after month end, while AMD remains a long term opportunity we are monitoring for a better entry. Wisetech also remains on watch.

We remain patient and disciplined. The technology revolution is reshaping industries, creating clear winners and losers. The medium term outlook for equities is promising, underpinned by stronger earnings and the prospect of lower rates. At the same time, we maintain selective shorts in two overpriced Nasdaq names that should benefit if September turns volatile.

We also have three new opportunities we expect to enter in September - tied to our core themes of China’s resurgence and surging electricity demand from AI adoption. With 60% cash, we have the flexibility to move decisively when risk/reward skews in our favour.

Our approach is consistent: concentrate capital in the best ideas, cut losers quickly, let the winners ride, and only invest when the setup is compelling.

NAV unit statements should already be in your inbox. We are also currently building out the investor portal on our website, expected live by November.

I truly appreciate the support of all clients. You have backed me, and my aim is to compound your capital over the long term, and ensure your trust is well placed.

Please email or call any time if you’d like more detail.

Regards