Q3 fund letters are starting to come out. 170 new letters are already on the site since Oct 1. Good time to show what I've built to save you hours of reading fund research 🧵

📊 Growth signals beneath the surface Source: Legal & General Investment Management

Minot Light Capital Appreciation Fund is long Suja Life ($SUJA) — their thesis in 5 points: • SUJA is one of the country’s largest manufacturers and distributors of fresh pressed juices and immunity shots, with vertical integration, an extensive cold chain distribution network, and strong brands in Suja and Vive. • The shots business is described as one of the best CPG businesses the manager has encountered, with 40%+ market share and gross margins likely well above 50%. • The core juice and shots business, excluding its investment in emerging brand Slice, should have around 20% EBITDA margins. • After its IPO in May 2026, the stock fell to levels approaching 1x EV/Sales, versus more common private market values in better-for-you CPG of 2-3x sales for companies that are far less profitable and less defensible. • A recovery was helped when SUJA’s largest private equity sponsor bought over 20% of the available public float in swift fashion; the fund also cites a relatively strong balance sheet, strong profitability, and a powerful franchise as reasons it could buy more on weakness. Source → hfbestideas.com/letters?open…

Generation IM Global Equity Strategy's latest quarterly letter — key takeaways: • The manager sees an early rotation away from AI infrastructure suppliers and toward hyperscalers and software companies that can turn AI spend into durable, recurring revenue. Their core AI view is that the biggest long-term winners will be businesses that “make use of intelligence,” not the suppliers of increasingly commoditised compute, memory and data-centre capacity. • Amazon and Microsoft are central to that thesis as AI diffusion platforms: they combine data, distribution, cloud infrastructure, compliance services and entrenched enterprise relationships, positioning them to capture value as AI adoption spreads. • Generation remains constructive on software companies that are systems of record, hold proprietary customer data and have sticky client relationships, arguing that AI adoption could strengthen rather than erode their terminal value. • The portfolio shifted selectively into AI-related enablers and application-layer winners: it initiated Synopsys for its critical role in increasingly complex chip design and Intuitive Surgical as the leader in robotic-assisted surgery, while also adding exposure via ASML and considering Cadence Design Systems. • The firm’s AI view is explicitly not a blanket bullish call on infrastructure: it expects AI demand to grow substantially, but believes infrastructure returns will decline as supply expands and costs per token fall, with the bigger opportunity moving into software, data integration and organisational redesign. • Several holdings were sold on signs that competitive advantages were weakening: Cooper Companies and Equifax were exited after channel inventory distortion, share loss and erosion in moat quality, while Charles Schwab was sold amid uncertainty around financial agents, deposit risks and inadequate responsiveness to climate-related business issues. • Existing positions Danaher, Sika, Microsoft and Workday remain favored, with the manager pointing to AI-related demand for Microsoft and Workday, and improving bioprocessing and specialty-chemicals momentum for Danaher and Sika. • The sustainability lens remains active and thematic rather than cosmetic: the firm says AI safety and governance are material sustainability issues, arguing that frontier AI labs cannot regulate themselves and need stronger external controls, while portfolio engagement stays focused on data-centre energy and water use, climate standards and transition plans. Read the full letter → hfbestideas.com/letters?open…

Malborough US Focus Fund's latest quarterly letter — key takeaways: • The manager remains worried about extremely narrow market breadth: mega-cap technology stocks are still driving index gains while many other constituents remain well below their 52-week highs. • He expects higher bond yields to persist, citing large fiscal deficits, increased defence and ageing-related spending, elevated energy prices and heavy debt issuance to fund AI infrastructure. • The letter is constructive on the broader earnings backdrop: strong corporate earnings growth and continued upward revisions to longer-term estimates, with the manager expecting broader market leadership to emerge as profitability and free cash flow expand beyond the largest technology companies. • AI capex is seen as a near-term drag on free cash flow for several mega-cap technology names, but he thinks the beneficiaries are elsewhere: electrical equipment, power generation, construction, semiconductors, HVAC and industrial automation should see improving cash-flow prospects. • Microsoft, Halozyme Therapeutics and Meta were the main contributors; the manager pointed to Microsoft’s Azure and Copilot reacceleration, Halozyme’s royalty growth and Meta’s early monetisation of consumer AI. • KLA, Applied Materials and Lam Research detracted as investors rotated away from high-momentum semiconductor and AI-related stocks and reassessed whether the returns on elevated AI capital expenditure will justify the spend. • A new position in SanDisk reflects a structural AI view: the manager sees NAND flash memory as a beneficiary of AI workloads and future inferencing demand, with improving margins and less cyclical demand creating room for valuation expansion. • Tapestry was sold despite the successful Coach revival, because revenue growth is expected to slow, operating margins may have peaked and Kate Spade’s recovery may take longer than expected. Read the full letter → hfbestideas.com/letters?open…

Mitsubishi UFJ Asset Management Co. Global Fixed Income's latest quarterly letter — key takeaways: • The manager sees a structurally higher real-yield backdrop as AI infrastructure, power-grid spending, climate adaptation and defence drive investment demand; fiscal deterioration, ageing populations and higher defence spending are also medium-term concerns, even if debt levels are not yet seen as unsustainable. • Duration was moved from neutral-to-slightly long to neutral-to-long, with a clear preference for Australia and New Zealand: high rates are already weighing on those economies, while yields still look attractive. • The portfolio is being positioned for carry at the short end while limiting yield-curve risk, with core bond exposure centered on commodity exporters including Norway, Australia and the US. • The manager expects developed-market yields to plateau and then eventually decline, arguing that 5% ten-year yields are a meaningful drag on growth; if spreads widen, credit exposure may be increased. • In Europe, the short-rate stance stays neutral: markets are still pricing more ECB tightening toward a deposit rate a bit above 3%, but energy-driven inflation is being offset by easing wages and tighter financial conditions. • Long-dated UK gilts are seen as attractive after the global backup in yields, with elevated term premia and the Bank of England’s pause in gilt sales providing technical support. • Japanese government bond yields are expected to rise further on BOJ normalisation, reduced central-bank purchases, fiscal concerns and weaker domestic institutional demand. • FX conviction remains limited, but the manager is modestly bullish AUD; the yen is expected to weaken gradually on energy-import costs and wide rate differentials, even if intervention causes temporary setbacks. Read the full letter → hfbestideas.com/letters?open…

Harding Loevner Global Equity's latest quarterly letter — key takeaways: • Rising bond yields, including a US 10-year Treasury yield above 5%, are still a headwind for growth stocks, but the manager says valuations are now much more reasonable than during the initial rate-upcycle. • The firm’s earnings framework is centered on two forces: heavy AI infrastructure spending and a commodities windfall that is boosting Energy producers. • AI remains a major source of opportunity across hyperscalers, semiconductors, hardware, power management, and software, but the portfolio stays diversified because capacity expansion, competition, and eventually weaker returns could unwind the cycle. • The manager is explicitly skeptical that current 75–80% incremental profit margins at many semiconductor and IT-equipment companies can last once competitors add capacity and supply catches up with demand. • The portfolio added Lenovo, SK hynix, and Delta Electronics after sharp share-price declines, leaning into hybrid AI computing, high-bandwidth memory, and rising data-center power demand when valuations became attractive. • Software names were retained despite weak sentiment because the manager thinks AI may actually strengthen their competitive advantages, especially where products are embedded in workflows and supported by proprietary data. • Neurocrine Biosciences was added as a comparatively attractively valued healthcare growth idea, backed by the Ingrezza franchise and Crenessity potential, even though the Soleno Therapeutics acquisition introduces execution risk. • The manager exited AstraZeneca after a clinical-trial failure weakened confidence in the pipeline, and sold Booking Holdings because AI assistants could threaten its long-term “connected travel” strategy. • The quarter also saw sales of Atkore after a takeover offer, Deere after valuation appreciation, and exits from Honeywell Aerospace and SAP, underscoring a disciplined willingness to harvest gains and move on. • Diversification remains a core portfolio principle because leadership can shift quickly: Energy outperformed IT in the quarter, and the portfolio is positioned for companies with multiple earnings drivers and more moderate valuations. Read the full letter → hfbestideas.com/letters?open…

📊 Search Engine to Steam Engine Source: Hosking Partners

Aristotle International Equity's latest quarterly letter — key takeaways: • The manager says the market is being driven less by business fundamentals and more by renewed Middle East conflict, volatile energy prices, shifting rate expectations, trade tensions and AI enthusiasm, with those forces pushing sector rotations. • He draws a sharp line between transient quality cyclical businesses whose economics fade as supply normalizes, conventional quality with eroding moats, and durable quality supported by permanent scarcity, essentiality, regulation or irreplaceable infrastructure. • The strategy is built around durable-quality companies that can raise prices ahead of inflation and compound through different macro regimes, while using market dislocations to buy attractive valuations when catalysts emerge. • Cameco detracted on fears of disruptions at Canadian uranium operations, but Aristotle keeps conviction in the name because of its tier-one assets, long-term contracts, fuel-services capabilities and Westinghouse stake as nuclear demand grows. • Rentokil Initial also weakened after softer North American growth and the withdrawal of its 2027 margin target, yet the manager still sees scale, route density and a recurring service model as real advantages, while watching the new CEO’s restructuring. • DBS Group was a beneficiary of record earnings, resilient net interest income and continued wealth-management growth; Aristotle points to its strong Asian franchise, diversified fee income and disciplined capital allocation. • Accenture rebounded as fears around AI disruption eased, and Aristotle argues its industry expertise, client relationships and technology ecosystem should become even more valuable as enterprises navigate faster technological change. • The portfolio sold Michelin after reassessing competitive dynamics and the scope for further profitability gains, while initiating WEG, a Brazilian electrical-equipment maker with vertical integration, net cash, international expansion and exposure to grid modernization, electrification and data-center infrastructure. Read the full letter → hfbestideas.com/letters?open…

L1 Capital Long Short Fund is long The Lottery Corporation ($TLC) — their thesis in 5 points: • TLC is Australia’s leading lotteries and Keno operator, with long-dated licences, national distribution and brands like Powerball, Oz Lotto, Saturday Lotto and Keno. Lotteries are 85% of EBITDA and Keno 15%. • The share price has de-rated from its 2025 highs due to higher bond yields, weak jackpot outcomes, licence renewal impacts and possible MSCI-related selling, but the fund says these are temporary headwinds. • FY26 was hit by an unusually weak jackpot sequence, estimated to have impacted EBITDA by ~$80m or ~11% of Lotteries EBITDA. The fund expects a normalised jackpot cycle to lift turnover and earnings. • The Victorian licence extension runs to 2068 and was secured at an implied ~9x EV/EBITDA versus TLC trading at ~16.3x. TLC’s next major lottery licence renewal is not until 2050. • Beyond jackpots, the fund sees self-help from Wayne Pickup’s strategy refresh: product and pricing optimisation, digital conversion of retail players, Keno modernisation and cost discipline. Source → hfbestideas.com/letters?open…

50 new pitches found in hedge fund reports this week : 🔹 Abbott Labs (ABT US) by Longleaf Partners Global Fund 🔹 Adaptive Biotechnologies Corp. (ADPT US) by Alger Small Cap Focus Fund 🔹 ADI Global Distribution, Inc. by Ariel Investments Small Cap Value Strategy 🔹 Airbnb, Inc. (ABNB US) by Baron Real Estate Fund 🔹 Allstate (ALL US) by Lorne Steinberg Wealth Management Steinberg Equity Strategies 🔹 Alquiber Quality (ALQ SM) by Horos AM Funds 🔹 Amazon Inc. (AMZN US) by Fat Prophets Global Contrarian Fund 🔹 Apple (AAPL US) by Mar Vista U.S. Quality Portfolio 🔹 Arm Holdings (ARM LN) by Baillie Gifford US Equity Growth 🔹 Arm Holdings plc (ARM US) by Artisan Partners Developing World Fund 🔹 Aviva (AV LN) by Liontrust UK Equity Fund 🔹 Brookfield Corporation (BN CN) by Lorne Steinberg Wealth Management Steinberg Equity Strategies 🔹 Cameco Corporation (CCJ US) by Hardman Johnston International Equity 🔹 Christian Dior SE (CDI FP) by AVI Global Trust 🔹 Dell (DELL US) by Liontrust Global Income & Growth Fund 🔹 Diploma (DPLM LN) by Guinness Pan-European Equity Income Fund 🔹 DSV (DSV CN) by Oakmark International Fund 🔹 E Ink (8069 TT) by Artisan Emerging Markets Fund 🔹 Equinix (EQIX US) by Clearbridge Investments ESG Investment 🔹 FedEx Freight (FDX US) by ClearBridge Investments Value Strategy 🔹 Fukuoka Financial (8354 JP) by TimesSquare Global Concentrated Small Cap 🔹 Kratos Defense & Security Solutions (KTOS US) by Aristotle Atlantic Large Cap Growth Strategy 🔹 Lattice Semiconductor Corporation (LSCC US) by Artisan Partners U.S. Mid-Cap Growth Strategy 🔹 Lenovo (992 HK) by Harding Loevner International Equity 🔹 LSEG (LSEG LN) by Guinness Global Equity Income Fund 🔹 Lumentum Holdings, Inc. (LITE US) by Brown Advisory Mid-Cap Growth Strategy 🔹 Manhattan Associates (MANH US) by Bell Global Equities Fund Wholesale Class 🔹 Meta Platforms (META US) by Oakmark Equity and Income Fund 🔹 Mitsubishi UFJ Financial Group (8306 JP) by Artisan Partners Global Equity Strategy 🔹 MTU Aero Engines AG (MTX GR) by Brown Advisory Global Leaders Sustainable Fund 🔹 Nektar Therapeutics (NKTR US) by Cedar Grove Capital Management Multi-Strategy Composite 🔹 Nike (NKE US) by Latitude Global Fund 🔹 ONEOK (OKE US) by Andrew Hill Client Account Strategy 🔹 PrairieSky Royalty (PSK TO) by Black Bear Value Fund 🔹 Primo Brands Corp (PRMB US) by Heartland Value Plus Fund 🔹 Quanta Services (PWR US) by Polen Focus Growth 🔹 Rocket Lab Corporation (RKLB US) by Brown Advisory Mid-Cap Growth Strategy 🔹 Sartorius AG (SRT GR) by AVI Global Trust 🔹 SEI Corp. (SEIC US) by Conestoga Capital Advisors Small Cap, SMid Cap & Micro Cap Strategies 🔹 South African equities by Desert Lion Capital Fund 🔹 Stran & Co. (SWAG US) by Minot Light Capital Appreciation Fund 🔹 SUMCO Corp. (3436 JP) by Hennessy Japan Fund 🔹 Tencent Holdings Ltd (700 HK) by Artisan Partners Developing World Fund 🔹 The Campbell’s Company (CPB US) by Bristlemoon Global Fund 🔹 Tokyo Electron (8035 JP) by Polen Capital Global Growth 🔹 Tufton Assets (SHIP LN) by AVI MIGO Opportunities Trust 🔹 U.S. Physical Therapy (USPH US) by Aristotle Small Cap Equity Strategy 🔹 Visa, Inc. (V US) by Akre Capital 🔹 Willis Towers Watson (WTW US) by Oakmark Global Select Fund 🔹 Wix Ltd. (WIX US) by Forager Funds (Australian Shares Fund and International Shares Fund) -> hfbestideas.substack.com/p/5…

📊 At what 10-year Treasury yield would you consider shifting your allocation from stocks to bonds? Source: Rothschild & Co