Q2 2025 Letter to Our Partners

Dear Partners,

I am pleased to present our Q2 2025 quarterly update for our concentrated portfolio of 10 high-quality companies. During the quarter, our compounding portfolio demonstrated the resilience and compounding characteristics we seek in our investment approach, with strong performance across several key positions.

Key Highlights:

• Portfolio maintains 100% allocation across 10 carefully selected positions

• AST SpaceMobile leading performance with +25.6% since march

• The Trade Desk showing robust momentum with +12.0% gains

• Ferrari and Amazon both posting solid +5.0% returns since march

Our investment philosophy continues to focus on companies with sustainable competitive advantages, strong management teams, and high reinvestment rates. This quarter reinforced our conviction in maintaining a concentrated approach with companies that align with secular growth trends.

Portfolio Performance Overview

We have seen massive macro volatility and VIX spikes over this period. Many investors hve been shaken out their positions at the wrong time.We stayd disciplined and followed our system. The portfolio's construction reflects our focus on quality businesses trading at reasonable valuations with long-term compounding potential. Our community has helped many partners stay grounded and disciplined during the massive volatility we experienced. Many partners have used the local bottom to add to their positions as the VIX siked above 60%. You are legends.

We studied the top 50 fund managers in the world, and learned that as a fund manager you have 3 levers. To beat the market over decades, you have to max out two of them. But if you max out 3 of them, volatility will shake you out in a downturn.

Staying true to these principles, 60% of our portfolio is in just 3 companies. That is a serious degree of concentration. Let’s review their performance and our plan for the next months.

Compounding Portfolio

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