August 2026

Hi {{first_name}}

The fund returned +6.0% net of fees in August. The MSCI ACWI (AUD) returned +0.7%.

Over the past 12 months the fund has returned +18.9% (MSCI: 9.8%), and since inception: 21.1% p.a. (MSCI: 13.8% p.a).

Our up/down capture ratio is 1.7x. We have captured 130% of benchmark gains in positive months while experiencing 78% of benchmark declines in negative months. The Sortino ratio is 3.5.

The hedging profits we reinvested in July paid off in August, particularly across software and selected resources holdings.

Innovaero was the largest contributor, with the investment revalued to the A$0.50 offer price ahead of its proposed ASX listing.

We finished August 93% invested, reflecting increased conviction following the June and July market reset. We also exited Tencent and DigitalOcean during the month as we continued to concentrate capital in our highest conviction opportunities.

Software rebounded following the July selloff. ServiceNow [NOW] contributed to returns and finished August at 4.6% of the fund.

We met management in Boston during the month and discussed how AI could deepen ServiceNow’s role across enterprise workflows while offsetting pressure on seat based pricing. Its new Autonomous Security product is one example.

AI monetisation remains unproven, but ServiceNow’s installed base, proprietary data and distribution are meaningful advantages.

We initiated the position in March at US$116/sh and have continued taking profits following a 28% increase from our entry price.

In our May newsletter, we became cautious on semiconductors after a strong rally left valuations, momentum and investor positioning stretched. This was a tactical decision, not a change in our long term view of AI infrastructure or memory demand.

The corrections through June and July reset prices and expectations. With hyperscaler capital expenditure, high bandwidth memory demand and memory pricing supportive, we selectively rebuilt exposure.

In August, we invested in Micron [MU] at an average price of approximately US$900 per share. The position finished the month at 2.6% of the fund and continues to build.

We also added to NVIDIA [NVDA] at US$220/sh average.

During the month, NVIDIA reported another strong quarter, with revenue increasing ~110% year on year and adjusted earnings increasing ~120%. Revenue is forecast to grow ~210% over the next two years.

More information at https://www.laserbeamcapital.com/company/NVDA

Last month, we wrote that earnings growth, not simply multiple expansion, was driving the market higher. The comparison with the late 1990s is helpful.

During the technology bubble, share prices ran far ahead of earnings expectations.

Today, earnings are flowing through to equity owners and supporting share prices.

The price paid for that growth also matters. The S&P 500 PEG ratio, which compares forward price to earnings with expected earnings growth, is near its historical low.

We enter September with above average market exposure. This is deliberate, but we will reduce exposure if the facts change or individual positions reach our risk limits.

We are becoming more constructive on the AI complex following a valuation reset over several months. We began rebuilding exposure in late August and have continued adding selectively. Advances in models and autonomous agents reinforce our view that demand for compute and investment across the AI supply chain will continue to grow.

Software remains divided. Infrastructure businesses whose revenue grows with machine activity look more attractive than software built around human seats. The selloff earlier this year was largely sentiment driven and underlying fundamentals remain supportive, although ServiceNow still needs to prove that AI products can offset pressure on seat based pricing.

Innovaero is expected to begin trading on 18 September, subject to ASX approval. The key next step is qualification of the OWL B system under Mission Talon Strike and whether this converts into production orders. Our discussions across the supply chain continue to support our confidence in long term demand.

Our objective remains unchanged: to compound capital through concentrated investments where the upside materially outweighs the downside, while retaining the flexibility to take advantage of market dislocations.

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

Regards

Hedge Partners Pty Ltd ACN 685 627 954, trading as Laser Beam Capital (Hedge Partners), is a Corporate Authorised Representative (CAR No. 1314946) of Non Correlated Advisors Pty Ltd ACN 158 314 982 (AFSL No. 430126). Hayden Beamish is an Authorised Representative (AR No. 1314950) of the same AFSL holder. Hedge Partners and Hayden Beamish are authorised to provide general advice only to wholesale investors. Nothing in this communication constitutes an investment offering unless expressly stated. Unless otherwise stated, all information and metrics are presented as at month end. Past performance is not a reliable indicator of future performance. Metrics are subject to change. References to holdings, top contributors, top detractors or example positions may not represent the full portfolio. Certain positions may be withheld from disclosure where we are actively managing position size, have not reached full weight, or cannot disclose for any other reason. This email is for information only and is not investment or financial advice. Before acting on any information, obtain independent taxation, financial and legal advice and consider it carefully. This email and any attachments are confidential and intended only for the named recipient. If you are not that person, please delete it and notify the sender. Email transmission cannot be guaranteed to be secure or error-free. The sender accepts no liability for any viruses, errors or omissions arising from email transmissions. Important information: This document contains forward-looking statements which are identified by words such as ‘will’, ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’ or ‘intends’, and other similar words that involve risks and uncertainties. These statements involve assumptions, known and unknown risks, uncertainties and other factors that may cause actual events, results, performance or achievements to be materially different from any future events, results, performance or achievements expressed or implied by such forward-looking statements in this document. Consequently, undue reliance should not be placed on these statements. The author does not warrant or represent that the actual events, results, performance or achievements will be as discussed in those statements.