Video Summary - Salkun parhaat tuplaantuivat

Finance-focused summary of the subtitles (Q2/2026 Shifter Fund report)

Fund performance (returns, timelines, comparisons)

YTD return: +18.9% (mainly driven by Q2)
Q2 return: ~+18.5%
Q1 headwind: Iran war in March “ate up” Q1 results
Longer-term average annual returns:
- 3 years: +16.6%
- 5 years: +12.5%
- 10 years: +13.2%
Fund age milestone: Turned 23 in June; strategy set to “raise the bar” again at age 25 (in ~2 years)
Cumulative performance since inception: +855% after fees
Relative performance claims:
- Up to +130 percentage points better than their “closest benchmark index”
- Up to +400% better than their Morningstar benchmark
Discipline caveat: They don’t beat benchmarks every year; there are “worse years.”

Key thesis / market context (why semiconductors led, why weights were reduced)

Semiconductors were the best-performing area during the period discussed.
They reduced semiconductor exposure as valuations moved ahead of business, citing risk management:
- Don’t “chase maximum returns with high risk”
- Reduce positions when valuations get ahead of fundamentals
Semiconductor drivers mentioned:
- Data center construction boom
- Cyclical turn for the better
- Memory chip shortage, implying future new production capacity investment

Stock performance highlights (growth leaders and laggards)

Top growth stocks in Q2 (called out):

Applied Materials (AMAT)
Lamb Research (LRCX)
Be Semiconductor Industries (BESI) Common thread: semiconductor/data-center investment cycle, and (especially) memory supply tightness.

Notable rebound / riser:

West Pharmaceutical Services (WST)
- Turnaround reason cited: market surprised by strength over the last two quarters, linked to GLP-1 injectable drug growth
- West supplies “rubber components” for syringe systems

Biggest decliners mentioned (examples):

Tomra Systems (TOM)
- Recycling machines segment saw downturn in revenue and profit
- Hopeful for a “temporary recession”
Northwest Company (NWC)
- Flagged as a decliner (described more generally as having been a winner earlier)
Costco (COST)
- War-era preference for defensive/safe-haven retailers faded as war potentially ends in Q2
- Rotation from defensive to cyclical/growth

Portfolio construction: largest holdings snapshot and factor characteristics

10 largest companies at end of June (they say these are “portfolio’s largest holdings”):

Safran
Alphabet
Microsoft
TSMC
Lamb Research
Applied Materials
Canadian National Railway
Allegion (newest company)
Deutsche Börse
MSCI

Portfolio concentration:

Top 10 holdings = over 50% of portfolio; “every company is very important.”

Business model preferences and implications:

Many holdings are B2B (sell to businesses/industries).
They argue B2B has stronger pricing power than B2C, improving resilience during high inflation.
~60% of companies are technology or industrial (some consumer exposure exists, but is smaller/less predictable).
Example of consumer/luxury weakness: lower demand in China feeding into operating profit declines
- They cite Costco as the only top-10 example resembling B2C among those mentioned.

Explicit portfolio changes in Q2 (what they did)

No companies were sold, but they:
- Bought new/additional positions
- Reduced or increased weights across existing names

New position / added:

Allegion (ALLE)
- Description: American lock and safety products company
- Comparison: like Assa Abloy, but Allegion focused mainly on the US (more predictability)
- Rationale cited:
  - Construction industry recession risk from high interest rates in Europe and USA
  - They argue stable institutional customers (schools/hospitals/universities) support revenue
  - Potential upside if the cycle improves
- Valuation: described as “very good” (exact multiple not given)

Re-added / “bought back”:

Verisign (VRSN)
- Previously held 2016–2024, then sold due to weakening end-market growth and concerns about domain-name growth
- Now brought back because growth improved over the last four quarters
- Drivers cited:
  - More customer acquisition
  - AI-generated website creation concept increasing demand for domain services
- Shifter-style attributes:
  - Capital-light
  - High margins
  - Limited competition due to agreements/industry structure
  - Example: for .com (e.g., shifterfund.com), you go through Verisign

Weight shifts away from semiconductors into other sectors:

They reduced semiconductor companies quite rapidly and transferred money to:
- Northwest
- ADP
- Microsoft
- Idex
- Safran
- Sintas
- Tomra (among others)
Rationale: better risk-adjusted return expectation
- Semiconductor fundamentals were improving, but valuations “got a little ahead of the business”
- Example cited: Lamb Research’s extreme Q2 move (over 100%, doubled in one quarter)

Software adds (example rationale):

Increased exposure to Microsoft and ADP
They argue lower AI-disruption risk:
- “Office suite and cloud services cannot be replaced” easily (even if some design/image tools may be replaced)
They noted they researched software but had not invested in new ones earlier; added because these were cheaper than at the beginning of the year, and they already had familiarity.

Sector allocation commentary (how they classify what)

They describe a shift:

Technology weight decreased
Industrial weight increased (partly driven by categorization, e.g., Allegion and other industrial additions)
Financial services declined slightly due to share price declines, not selling activity
Geography: “No significant changes” since the beginning of the year

Valuation framework / methodology (step-by-step logic used)

They outline a valuation approach comparing forward revenue expectations to today’s price:

Track companies’ expected results ~5 years ahead
Compare those expectations to today’s share price
Use conservative earnings estimates for all companies (fast and slow growers)

Key valuation claims:

Valuation remained stable even as the fund price rose:
- Over the past 5 years, fund returned >80%
- Their “valuation level” metric stayed near the global average
Much of the return attributed to earnings/results growth:
- Companies’ results “at the start of the shift” grew at ~13.5% per year over five years
Implication: valuation levels within the portfolio are “well within average,” suggesting they did not overpay on a forward-looking basis.

Key recommendations / cautions explicitly stated

Main risk-management action:
- Reduce positions when valuation runs ahead of fundamentals, even if those are “best performers.”
They caution that:
- Semiconductors and other sectors can have quarters where returns reverse
- A single quarter’s performance isn’t enough to judge business quality; they prefer multi-year framing
No direct “buy/sell today” instructions were provided beyond describing portfolio actions.

Disclosures / disclaimers

They remind viewers these are examples only and “not investment advice.”
Viewers should “make their own good decisions.”
Some ideas may arise from their thinking, but again: not investment advice.

Tickers / entities mentioned

AMAT (Applied Materials)
LRCX (Lamb Research)
BESI (Be Semiconductor Industries)
WST (West Pharmaceutical Services)
TOM (Tomra Systems)
NWC (Northwest Company)
COST (Costco)
Allegion (ticker not stated in subtitles)
VRSN (Verisign)
ADP (Automatic Data Processing)
Idex (ticker not provided)
MSFT (Microsoft)
Alphabet (GOOGL/GOOG referenced; ticker not stated in subtitles)
TSMC (ticker not stated)
Safran (ticker not stated)
Sintas (likely SINT, ticker not stated)
Deutsche Börse (ticker not stated)
MSCI (ticker not stated)
Canadian National Railway Company (ticker not stated)

Presenters / sources mentioned

Subtitles reference “Shifter Fund” and “Alexander” (asked a question about decliners).
No full presenter name beyond Alexander is clearly stated.

Salkun parhaat tuplaantuivat – Q2/2026 +18,5 %

Key takeaways