The second quarter of 2025 proved to be remarkably dramatic for financial markets. Following a significant decline around "Tariff Liberation Day," markets experienced a sharp V-shaped recovery through April, continuing to climb steadily as the quarter progressed. This recovery unfolded amidst a backdrop of escalating geopolitical tensions, including brief skirmishes between Pakistan and India, and the United States bombing of nuclear sites in Iran. Simultaneously, the United States engaged in complex trade negotiations with global trade partners.

The rapid succession of impactful news headlines left little time for the market to fully process the implications of each development. In such an environment, it would have been easy to succumb to emotional biases, paralysis, or unfounded fear. However, this period allowed us to demonstrate the value of keeping our heads when all around us are losing theirs. By remaining focused, rational, and objective, and by rising above the constant noise of conflicting news, opinions, and political rhetoric, the fund effectively capitalized on heightened volatility to reposition our portfolio.

As of the end of Q2 2025, our fund has delivered a 11.31% year-to-date performance, outperforming several major indices. Our continued focus on companies benefiting from durable secular trends proved particularly rewarding. The data center and AI secular trend, which experienced a correction in Q1 2025, not only recovered but pushed to new highs. During the market sell-off, we actively added to our positions in cybersecurity companies. Additionally, we initiated new positions in U.S. independent power producers at the beginning of Q2 2025.

We fully exited our position in ASML Holdings, successfully locking in profits. We also trimmed our exposure to Roblox, recognizing the company's strong performance this year. Furthermore, we divested from certain consumer product companies where we identified outsized risks due to tariff uncertainties and observed consumer weakness in China. Finally, we increased our allocation to the precision medicine space, following positive developments related to BioNTech's recent deal with Bristol Myers Squibb.

We extend our sincere gratitude to our investors for their continued support and trust during this period of market volatility. Your partnership is invaluable and enables us to pursue our work with confidence and success.

Jun 2025