WHG Global Long Bias Fund commnentary for the month September 30, 2025.
Performance
- September: +10.1%
- YTD: +43.3%
- ITD: +119.0%
Monthly Commentary
September reinforced the view that the global economy is heading toward a divergence. AI-related sectors continue to attract investment and sustain growth, while the broader economy shows signs of weakness, with weak job growth and consumer confidence at historical lows. This disconnection between accelerating GDP and a fragile labor market poses a challenge for the Fed, which must calibrate monetary policy amid growth concentrated in a few sectors and an economy that remains close to stagnation.
Positive Highlights:
- Softbank: September reinforced the view that the global economy is heading toward a divergence. AI-related sectors continue to attract investment and sustain growth, while the broader economy shows signs of weakness, with weak job growth and consumer confidence at historical lows. This disconnection between accelerating GDP and a fragile labor market poses a challenge for the Fed, which must calibrate monetary policy amid growth concentrated in a few sectors and an economy that remains close to stagnation.
- AppLovin: Shares rallied after a strong early-August print and guide. Momentum continued in September with the anticipation of e-commerce GA. Subsequent inclusion in the S&P 500 added incremental demand support and aided performance.
- China – Robotics and Semis: The Chinese government strengthened its support for innovation and technological self-sufficiency through new subsidies and fiscal measures. In robotics, Ubtech reported higher orders, and local supply chains indicated increased production of Tesla’s Optimus. In semiconductors, strong domestic demand and policy support led to a sector re-rating. Alibaba and Huawei announced new AI investments, while DeepSeek launched a model that replaced Nvidia’s CUDA with TileLang, a locally developed GPU programming language that reinforces the push for national solutions.
- Power Access: The segment benefited from the continued strength of the AI/HPC narrative. Portfolio companies announced the expansion of their GPU fleets (increasing revenue potential in cloud and AI), the enhancement of power access infrastructure, and the development of proprietary ASICs, further diversifying revenue sources.
- Siemens Energy: Optimism around energy demand and electrification driven by AI reinforced the positive outlook for the company. Expectations of an upward guidance revision in November and the inclusion in the Stoxx 50 Index also supported performance, with stronger operating margins and sustained pricing power.
- WING and LULU (Short): Wingstop showed a slowdown in sales based on high-frequency alternative data, reflecting weaker consumption among lower-income and Hispanic consumers. Lululemon reported results below expectations, with softer growth in the U.S. and China — a key market for the company’s expansion — along with more conservative guidance for the next quarter.
Negative Highlights:
- Portfolio Hedges: In a month of broadly positive market returns, we saw losses across the indices used as hedges.
As always, we’re here to support your investment journey and address any questions you may have about your portfolio or the broader market landscape. Please don’t hesitate to get in touch.
Thank you for your continued trust in us.
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