Alpine Saxon Woods Core Momentum Strategy

Microsoft (MSFT) was the portfolio’s leading contributor for the quarter, rising as the skepticism over its AI spending that pressured the shares in the first half gave way to clear evidence of monetization. Azure revenue grew 43% in the June quarter, surpassing $100 billion in annual revenue, management guided to roughly 45% Azure growth in the current quarter, and Microsoft 365 Copilot passed 30 million paid seats; the volatility we used to add to our core position last quarter was well rewarded. CrowdStrike (CRWD) extended its advance after a strong late-August report, as its Falcon Flex licensing model gained traction and new distribution through the Anthropic and OpenAI enterprise marketplaces broadened its reach. Meta Platforms (META) recovered from an initial post-earnings selloff over higher capital spending guidance, as 28% revenue growth demonstrated that its AI investments are translating directly into advertising performance; we used that selloff to substantially increase the position, which is now our third-largest holding. SK Hynix (SKHY), the dominant supplier of high-bandwidth memory (HBM) for AI accelerators, was a strong contributor in its first quarter in the portfolio after we established a position through its record U.S. ADR listing in July. Finally, Thermo Fisher Scientific (TMO) rallied after a beat-and-raise second quarter in which revenue grew 10% and adjusted EPS rose 13%, as pharma and biotech demand — particularly bioproduction and clinical research — moved from stabilizing to accelerating.

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Taken together, these results reflect the balance we have tried to strike: as the momentum-driven, hardware heavy segment of the AI trade corrected, our holdings in the platforms, software, and health care franchises with the most durable competitive advantages carried the portfolio. Snowflake (SNOW), which reported its third consecutive quarter of accelerating product revenue growth, narrowly missed our top five and is another example of AI demand flowing through to software.

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Marvell Technology (MRVL) was the largest detractor for the quarter, giving back a portion of its second-quarter advance amid the July semiconductor unwind. The company’s late-August results beat expectations, with record data center revenue up 46% and a raised fiscal 2027 outlook, but shares fell on lower gross margin guidance tied to a growing mix of custom AI silicon; we trimmed the position meaningfully during the quarter, though we continue to view Marvell as a core AI-infrastructure holding. Cummins (CMI) declined after second quarter earnings missed expectations on margin pressure, overshadowing higher full-year revenue guidance driven by data center power generation demand, as investors questioned how quickly that growth will convert into earnings; we exited the position and now express our view on data center power demand through Bloom Energy (BE). KLA Corp. (KLAC), a position we initiated and exited within the quarter, fell after in-line guidance, tariff and memory-pricing margin headwinds, and reports of Chinese state-backed progress in chipmaking equipment overshadowed a beat and a higher outlook for wafer fab equipment spending, compounding the broader semiconductor selloff. Monster Beverage (MNST) was pressured despite a strong second quarter with 20% revenue growth, as rising Treasury yields weighed on richly valued consumer names. With international revenue growing nearly 35%, we believe the growth story is intact and used the weakness to add to the position. Intel (INTC), a new position last quarter, declined from its late-June record high alongside the broader semiconductor group, in a sector-wide selloff and profit taking that, in our view, did not reflect a change in the company’s fundamentals; supply constraints remain the key limit on near-term revenue, and we added modestly on the decline.