March was a tough month for markets, no question. Investor confidence took a hit as U.S. tariffs ramped up, consumer and corporate sentiment weakened, and headlines began to look increasingly like something out of a geopolitical thriller. But amid the volatility, we’re staying calm, focused, and, most importantly, opportunistic.
What’s playing out feels a lot like a high-stakes game of cards - one where the rules keep changing. The U.S. administration’s aggressive stance on tariffs, particularly the 25% levy on imported vehicles, has introduced uncertainty that’s difficult to model. Are we heading for stagflation, or just another political power play? Will President Trump pivot if the U.S. edges toward recession, or double down ahead of the 2026 midterms? These are the questions the market is grappling with - and for now, they remain unanswered.
In this kind of environment, macro forecasting becomes guesswork. So rather than trying to second-guess political moves, our strategy is simple: focus on companies with strong earnings growth, resilient business models, and long-term structural tailwinds. Capital will always find its way back to the winners.
While the headlines are dramatic, we’ve been here before. Wars, conflicts, and political crises have punctuated markets over the past century - and yet, time and again, markets recover, often faster than expected. Investors who maintain perspective and discipline are the ones who ultimately get rewarded.
There are green shoots of optimism. March saw several bright spots in our portfolios. The Emerging Companies Fund finished the month up, benefitting from well-timed positioning in gold and niche industrials. The Australasian Growth Fund saw one of its largest holdings, The Reject Shop, surge 97% following a takeover bid - a fantastic result and a testament to our team’s stock selection process.
It’s also worth remembering that U.S. corporate dominance remains largely intact. While short-term political chaos reigns, the global economy still runs on the likes of Apple, Microsoft, and Google. You’d be hard-pressed to go a day without interacting with one of them. Like the Roman Empire, the U.S. has weathered many flawed administrators and endured.
We expect more volatility in the months ahead, but with that comes opportunity. Our cash levels remain elevated across many of our strategies, and we’re ready to deploy capital into quality businesses that have been unfairly sold off. We're hunting for value, and we’re finding it.
As Warren Buffett says, "Never bet against America." But as we’ve seen in recent months, capital is also starting to flow to Europe, Asia, and emerging markets again - areas we’re actively exploring.
Thank you for your continued trust. We remain disciplined, patient, and optimistic that these disruptions will ultimately lead to attractive opportunities. If you have any questions or would like to discuss the portfolio in more detail, please don’t hesitate to
get in touch.2025 Tax Statements will be available by 23rd May in the Documents section on your portal. Individual fund fact sheets are available to be downloaded from the performance page.
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