Emerald
Emerald Focused Equity Strategy
Global Mega-cap
Dec 2025 → Jun 2026
Our archive holds 3 letters from this strategy, behind 14 investment theses and positions in 18 companies. Every quote below is copied verbatim from the letter it came from.
3 letters in 2 years · follow all of Emerald for every strategy.
Performance
as of Jun 30, 2026 · net of fees · USD · Net of fee
- YTD−3.1%index +11.3%
- 1Y+3.5%index +24.0%
- 3Y · /yr+8.8%index +20.0%
- 5Y · /yr+4.0%index +11.1%
- Inception · /yr+12.6%index +13.3%
Index: Benchmark
| YTD | 1Y | 3Yper year | 5Yper year | Since inceptionper year | |
|---|---|---|---|---|---|
| Emerald Focused Equity Strategy | −3.1% | +3.5% | +8.8% | +4.0% | +12.6% |
| Benchmark | +11.3% | +24.0% | +20.0% | +11.1% | +13.3% |
Calendar years
- 2025+13.2%index +22.6%
- 2024+7.5%index +17.9%
- 2023+24.2%index +22.5%
- 2022−25.7%index −18.0%
- 2021+27.5%index +19.0%
- 2020+34.9%index +16.8%
- 2019+36.7%index +27.3%
- 2018−9.1%index −8.9%
- 2017+33.8%index +24.6%
- 2016+1.3%index +3.0%
Disclaimer
These figures are copied from the manager’s latest letter, as of Jun 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
We used the index’s weakness to continue to add to some of our Chinese positions.
Having trimmed the position close to its peak in the first quarter, we are comfortable with what we hold today.
We therefore sold approximately half our holding: the sharp appreciation had compressed the margin of safety and left the position larger than we were comfortable with.
We added to the position on the back of the OpenAI announcement, and as the stock consolidated off its highs.
We also added to H World, soon to become China's largest hotel group by property count.
Finally, we added to ServiceNow.
- ExitedSika AGJun 2026
We sold Sika.
Also held
Its investment theses
- H World Group LimitedJun 2026H World is an asset-light hotel franchise platform in China with strong ROIC, expansion potential and an attractive free cash flow yield.
- Schneider Electric SEJun 2026Schneider Electric supplies electrical and automation infrastructure, with a durable competitive advantage and long-term growth from electrification and data centers.
- Broadcom Inc.Jun 2026Broadcom is a leading designer of custom AI silicon and networking, with strong positioning in inference chips and AI infrastructure.
- Tencent Holdings LimitedJun 2026Tencent is a leading Chinese technology platform with WeChat’s network effects, advertising upside and emerging e-commerce and AI opportunities.
- ASML Holding N.V.Jun 2026ASML is the monopoly supplier of advanced lithography equipment, benefiting from AI-driven semiconductor demand and durable competitive advantages.
- Intercontinental Exchange, Inc.Jun 2026Intercontinental Exchange owns exchange, clearing, data and mortgage technology assets, with secular growth and AI likely to enhance rather than disrupt its moat.
- ServiceNow, Inc.Jun 2026ServiceNow provides enterprise workflow software and benefits from high switching costs and AI monetization opportunities.
- TencentMar 2026Tencent is a dominant Chinese digital ecosystem with WeChat network effects, underexploited monetization, and AI-driven upside.
- Constellation SoftwareMar 2026Constellation Software is a niche vertical software acquirer with durable customer relationships, AI-resilient distribution, and a low valuation.
- DSM-Firmenich AGDec 2025DSM-Firmenich is a leading ingredients company with high switching costs, synergy delivery, structural beauty and nutrition tailwinds, and an attractive relative valuation.