Palantir Technologies Inc. (NASDAQ: PLTR), the data analytics and artificial intelligence software firm co-founded by Peter Thiel, has seen its shares rebound sharply in early March 2026 following a post-earnings pullback, fueled by strong analyst upgrades, accelerating AI platform adoption, and fresh government contracts amid heightened geopolitical tensions.

As of March 2, 2026, PLTR shares traded around $142 in pre-market and early sessions, up from a Feb. 27 close of $137.19 (+0.92% that day) on volume exceeding 50 million shares in recent sessions. The stock has fluctuated between roughly $133 and $143 intraday, with a 52-week range of $66.12 to $207.52 (hit in November 2025). Market capitalization hovers near $328 billion, reflecting a forward P/E ratio over 200 amid explosive growth expectations.

The momentum builds on Palantir’s blockbuster fourth-quarter and full-year 2025 earnings released Feb. 2, 2026. Revenue soared 70% year-over-year to $1.407 billion in Q4 — the highest growth rate as a public company — surpassing estimates of about $1.33 billion to $1.34 billion. Adjusted EPS reached $0.25, beating consensus of $0.23. Full-year 2025 revenue climbed 56% to $4.475 billion, with U.S. commercial revenue surging 109% to $1.47 billion and U.S. government up 55% to $1.85 billion.

CEO Alex Karp hailed the results as “historic” and “iconic,” crediting demand for the Artificial Intelligence Platform (AIP) and Foundry for enterprise and government operational AI. U.S. commercial revenue jumped 137% in Q4 to $507 million, while total U.S. revenue hit $1.076 billion (+93%). The company closed deals including 180 worth at least $1 million, 84 at $5 million-plus, and 61 exceeding $10 million — record figures.

Guidance reinforced the bullish case: Q1 2026 revenue projected at $1.532 billion to $1.536 billion (well above estimates), with full-year 2026 revenue eyed at $7.182 billion to $7.198 billion — implying 61% growth. U.S. commercial revenue is forecast to exceed $3.144 billion (+115% at minimum). Adjusted operating income targets $4.126 billion to $4.142 billion, with adjusted free cash flow between $3.925 billion and $4.125 billion. Palantir expects GAAP profitability each quarter in 2026.

Wall Street has responded enthusiastically. UBS upgraded PLTR to Buy from Neutral in late February, citing 70% revenue growth potential in 2026 despite AI market volatility. Rosenblatt initiated coverage with a Buy, calling Palantir a “unique company” at an “attractive entry point.” Consensus leans Buy, with median price targets around $196 (43% upside from $137 levels), and highs reaching $260. Recent revisions lifted 2026 EPS estimates significantly, with some projecting $1.31 for 2026 and $1.83 for 2027.

Recent developments bolster the outlook. In mid-February 2026, Palantir partnered with Rackspace Technology to deploy Foundry and AIP in production environments with governed operations, accelerating enterprise AI adoption in regulated sectors. A five-year blanket purchase agreement with the Department of Homeland Security (DHS), valued up to $1 billion, streamlines AI and analytics platform access across agencies like Customs and Border Protection and ICE.

Other wins include extended collaborations with Airbus for aviation data platforms, DISA authorization for on-premises and edge deployments, and sovereign AI infrastructure projects with Accenture in EMEA. Geopolitical events, including U.S.-Iran military actions, have spotlighted Palantir’s defense moat via platforms like Gotham and Maven, used in intelligence and battlefield operations.

Profitability metrics shine: Q4 adjusted operating margin hit 57%, full-year adjusted free cash flow margin 51%, with $7.2 billion in cash reserves. The Rule of 40 score reached 127% in Q4, blending growth and margins exceptionally.

Challenges remain. The stock dipped 34% from its 2025 peak amid valuation concerns and broader AI sector volatility. Critics point to high P/E ratios, reliance on government contracts (potentially politically sensitive), and competition from Snowflake, Databricks, and cloud giants. International growth lagged at 8% in recent quarters, though commercial traction improves.

Analysts argue the pullback creates opportunity, with AIP’s bootcamps driving faster deployments and customer counts up 34%. Options sentiment has been mixed but tilted bullish on dips.

Next earnings arrive around May 4-11, 2026, for Q1. Investors will track AIP momentum, commercial deal flow, and any new defense or enterprise wins amid global uncertainties.

Palantir’s 2026 narrative centers on transforming from government specialist to AI powerhouse, leveraging AIP for explosive U.S. commercial gains while securing strategic federal footholds. With guidance crushing expectations and analysts turning bullish, PLTR trades as a high-conviction AI play — volatile, but backed by accelerating fundamentals.

Lockheed Martin Corp. shares climbed sharply in recent trading, reflecting heightened investor confidence in the defense sector amid ongoing global conflicts and robust U.S. military spending priorities.

The aerospace and defense giant’s stock (NYSE: LMT) closed at $658.08 on Feb. 27, up $16.45 or 2.56% from the previous session, with pre-market activity on March 2 pushing it toward $691, marking gains of more than 5% in extended hours. The rally comes as the stock trades near its 52-week high of $669.75, achieved earlier in February, and well above its low of $410.11 from mid-2025. Year-to-date performance has been strong, fueled by a combination of contract wins, production milestones and broader market dynamics favoring defense contractors.

Lockheed Martin, the world’s largest defense contractor by revenue, benefits from a massive backlog and long-term government commitments. The company reported record financials for 2025 in late January, with full-year sales reaching $75.0 billion, a 6% increase from the prior year. Net earnings stood at $5.0 billion, or $21.49 per share, though results included a one-time $479 million pension settlement charge. Free cash flow was solid at $6.9 billion, supported by $8.6 billion in cash from operations.

The company’s backlog hit an all-time high of $194 billion, providing strong visibility into future revenues. For 2026, Lockheed Martin guided sales between $77.5 billion and $80.0 billion, with diluted earnings per share expected in the range of $29.35 to $30.25 and free cash flow projected at $6.5 billion to $6.8 billion. Analysts view these targets as achievable, given steady demand across key programs.

The F-35 Lightning II fighter jet remains the cornerstone of Lockheed Martin’s portfolio. In 2025, the company delivered a record 191 F-35s, surpassing previous highs and underscoring ramped-up production rates. The program, involving international partners and the U.S. military, continues to drive revenue in the Aeronautics segment. Recent advancements include flight testing of an AI-enhanced Combat Identification system, known as Project Overwatch, integrated into the F-35’s sensor fusion. This innovation improves pilot situational awareness by generating independent combat ID recommendations in real time.

Missiles and fire control systems have also seen significant momentum. Lockheed Martin’s Grand Prairie, Texas, facility received more than $77 million in contracts this month for Patriot PAC-3 MSE modifications and related work. A landmark $9.8 billion U.S. Army award from September aims to boost annual production capacity to 1,970 units from 620, responding to global demand, including support for Ukraine and allied nations. The company delivered 620 Patriot units in 2025 following production increases.

Other recent developments highlight diversification into emerging technologies. Lockheed Martin announced a $10 million order for high-energy laser systems and partnerships in quantum computing research, signaling growth in directed energy and advanced computing. In unmanned systems, the company unveiled the Lamprey multi-mission autonomous undersea vehicle in February, developed in just 14 months to meet U.S. Navy needs for covert operations and sea denial. Plans include larger variants and additional platforms by year-end.

The company is also positioning for space and lunar initiatives. It advances fission surface power concepts for NASA’s Artemis program, with White House directives emphasizing nuclear reactors for lunar bases by 2030. Lockheed Martin secured Phase 1 contracts and extensions to develop these systems, supporting long-duration lunar missions.

Geopolitical factors appear to underpin the recent stock momentum. Escalating tensions, including reported Iran-related developments and broader Middle East instability, have boosted defense stocks industrywide. Lockheed Martin’s exposure to missiles, aircraft and integrated systems aligns with increased Pentagon focus on readiness and modernization. The company’s low beta of around 0.23 indicates relative stability compared to the broader market, appealing to investors seeking defensive plays.

Market capitalization hovers near $151-152 billion, with a price-to-earnings ratio around 30.6 based on trailing earnings and a forward-looking valuation that some analysts describe as fully priced or stretched. The dividend yield stands at approximately 2.0-2.1%, with a quarterly payout supporting income-focused shareholders. Ex-dividend date was March 1, 2026.

Analysts maintain a generally positive outlook, though some caution that growth remains concentrated in certain segments like missiles, with modest overall acceleration expected. A recent Seeking Alpha analysis characterized Lockheed Martin as “operationally strong” but a “textbook hold” for 2026 due to valuation.

The company continues to invest in next-generation capabilities, including collaborative combat aircraft like Vectis, designed to integrate with fifth-generation platforms such as the F-35 and F-22. Leadership has emphasized readiness for initiatives like “Golden Dome for America,” focusing on multi-domain connectivity.

As Lockheed Martin navigates 2026, its blend of legacy programs, production ramps and innovation in AI, autonomy and space positions it to capitalize on sustained defense priorities. Investors will watch upcoming quarterly results, expected around April 21, for further updates on execution and potential adjustments to guidance.

Texans across the state marked Texas Independence Day on March 2, 2026, commemorating 190 years since delegates boldly declared the region free from Mexican rule in 1836. The annual observance, a legal state holiday, blends solemn historical reflection with lively festivities, parades and reenactments that highlight Texas’ unique path to sovereignty.

As state offices closed and flags flew high, communities from Austin to San Antonio hosted events honoring the Texas Declaration of Independence. The centerpiece remained Washington-on-the-Brazos State Historic Site, where the declaration was signed, drawing crowds to a revamped venue after major renovations.

Here are 10 key things to know about Texas Independence Day and its enduring significance:

1. The date marks the adoption of the Texas Declaration of Independence on March 2, 1836. Fifty-nine delegates, representing Texian and Tejano settlers, convened at Washington-on-the-Brazos amid the Texas Revolution. They unanimously approved the document, severing ties with Mexico and establishing the Republic of Texas. The declaration cited grievances against Mexican centralist policies, including lack of representation and violations of rights.

2. Washington-on-the-Brazos is forever known as the “birthplace of Texas.” The small settlement hosted the Convention of 1836, where delegates worked swiftly — completing the declaration in a single day. The site now features Independence Hall replica, the Star of the Republic Museum and Barrington Living History Farm, preserving the story of Texas’ brief era as an independent nation.

3. 2026 marks the 190th anniversary of the declaration. Celebrations emphasized this milestone, with the Texas Historical Commission hosting a major event Feb. 28 at Washington-on-the-Brazos following $54 million in renovations completed in late 2025. The free public gathering included an opening ceremony, parade starting at 10:30 a.m., live performances, musket and cannon demonstrations, vendor booths and food trucks. A special exhibit displayed the “Ark of the Covenant” box crafted from original Independence Hall wood to house the declaration.

4. Texas Independence Day is a state holiday, but not federal. State government offices, libraries and many agencies close, though banks, post offices and federal facilities remain open. Public schools typically hold regular classes, often incorporating educational programs about the Texas Revolution. The day also coincides with Texas Flag Day and Sam Houston Day observances.

5. The Republic of Texas existed for nearly a decade before joining the United States. After independence, battles like the Alamo (February 1836) and San Jacinto (April 1836) secured the victory. Sam Houston’s forces captured Mexican General Antonio López de Santa Anna at San Jacinto, forcing recognition of Texas sovereignty. Texas became the 28th U.S. state on Dec. 29, 1845.

6. Only one original copy of the Texas Declaration survives. Of the five handwritten versions produced in 1836, four were lost or destroyed over time. The lone surviving original is preserved at the Texas State Library and Archives Commission in Austin. Modern replicas and digital versions allow widespread access to the text, which echoes the American Declaration in structure and ideals.

7. Celebrations extend statewide with parades, reenactments and cultural events. In Austin, the annual Texas Independence Day Parade features floats, historical attire and community groups. San Antonio hosts observances at the Alamo, including commemorations from March 1-2 with free admission and programs. Gruene Hall near New Braunfels offers live music and activities, while university campuses like the University of Texas at Austin uphold traditions dating back over a century, including gatherings inspired by early 20th-century student observances.

8. The holiday underscores Texas’ distinct identity. Texans often proudly note their state’s unique history as a former independent republic — a status shared by few others in U.S. history. Popular lore includes myths like Texas’ right to secede or divide into five states, though legal experts clarify these claims lack foundation under current U.S. law. The day reinforces pride in symbols like the Lone Star flag, which flew over the Republic and remains the state banner.

9. Modern observances tie into broader American commemorations. In 2026, Texas America250 initiatives highlight the state’s role in U.S. history ahead of the nation’s semiquincentennial on July 4. Events at Washington-on-the-Brazos featured new exhibits on 1836 convention scenes, emphasizing American influences on Texian settlers who drew inspiration from the 1776 Declaration.

10. The spirit of independence lives on through education and community. Reenactments, storytelling sessions, homeschool days and lantern tours (like the sold-out Feb. 27 event at Washington-on-the-Brazos) engage new generations. Other sites, such as Boonville Heritage Park, offer hands-on 19th-century activities. Amid ongoing renovations and investments, historic sites aim to preserve this chapter as Texas continues evolving while honoring its revolutionary roots.

Texas Independence Day remains a point of pride for millions, blending history with celebration. As one observer at Washington-on-the-Brazos noted, the holiday reminds residents that Texas began with a bold assertion of freedom — a legacy that endures 190 years later.

After a bruising Monday that wiped out Rs 6.59 lakh crore of investor wealth, Dalal Street now faces a fresh overhang after US President Donald Trump indicated that the war with Iran could stretch for four to five weeks.

Indian markets were shut on Tuesday for Holi, leaving investors to react on Wednesday to Trump’s comments that the conflict “has always been a four-week process” and could continue for “four weeks or less”. He said he remained open to talks with Iran but did not indicate whether negotiations would happen soon.

On Monday, equity markets had already cracked under geopolitical pressure. The BSE Sensex plunged 2,743 points in early trade before trimming losses to end 1,048 points lower at 80,238, down 1.29%. The Nifty also fell sharply, closing near 24,850. The total market capitalisation of BSE-listed firms fell by Rs 6,59,978 crore.

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, said the sell-off reflected a clear risk-off move. “Indian equities witnessed a sharp decline as escalating tensions in West Asia triggered a pronounced risk-off response. Markets reacted to US and Israeli strikes on Iran and subsequent regional retaliation, prompting a flight to safe-haven assets,” he said.

With Trump now signalling a potentially longer conflict, market participants will be watching crude oil and global cues closely when trading resumes.

Vinod Nair, Head of Research at Geojit Investments, said rising crude oil prices and a weakening rupee reflect concerns over potential disruptions to oil supply, which could increase inflationary pressures in India, impact fiscal balances and strain margins for energy- and chemical-dependent sectors.
He added that the India VIX has moved higher, signalling greater uncertainty and risk aversion, while foreign institutional investor selling has intensified following the spike in crude. Also Read | NFO Insight: Will TRUSTMF Mid Cap Fund’s GARV and LIM strategy help identify quality mid-cap opportunities?

Technically, analysts see the market in a weak but potentially oversold zone.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the market is trading well below short- and medium-term averages and, on intraday charts, it is holding a weak formation, which is largely negative. However, he added that the market appears oversold and a technical bounce cannot be ruled out.

Analysts see 24,750 on the Nifty and 80,000 on the Sensex as key support levels. “As long as the market is trading above this, a pullback formation is likely to continue,” Chouhan said, adding that on the upside the Nifty could attempt a move towards 25,000-25,075. A break below 24,750, however, could push the index towards 24,650-24,500.

Gaurav Udani, Founder of Thincredblu Securities, sees immediate resistance around 25,100 on the Nifty, with support in the 24,550-24,600 range. “A sustained break below this support band could extend downside pressure, while reclaiming resistance is necessary for any short-term stabilisation,” he said. Given heightened geopolitical uncertainty, he advised traders to remain cautious and avoid leveraged positions.

The key variable for Wednesday’s trade will be oil. A sustained rise in crude could worsen inflation expectations, pressure the rupee and complicate the interest rate outlook. If crude stabilises or cools, markets may attempt a relief bounce from oversold levels.

Oil prices rose marginally on Tuesday as fighting between the United States, Israel and Iran intensified. US West Texas Intermediate crude rose more than 1% to around $70.59 a barrel by 11:48 GMT, extending gains from the previous session when prices had surged nearly 14%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

It has been exactly one month since Nancy Guthrie was abducted from her home in the Catalina Foothills, and the case that has gripped the nation remains unsolved. As of March 2, 2026, the Pima County Sheriff’s Department and the FBI have transitioned from an intensive “boots on the ground” search to a focused criminal investigation driven by digital forensics and high-value tips.

The Abduction: What We Know

Nancy Guthrie was last seen on the night of Saturday, January 31, 2026, when she was dropped off at her home by her son-in-law after a family dinner.

• 1:47 a.m., Feb 1: A masked individual was captured on doorbell footage disconnecting the home’s security camera.
• 2:12 a.m., Feb 1: The camera briefly detected a person again before the system was fully disabled.
• The Discovery: Family members reported her missing on Sunday morning after she failed to show up for a virtual church service.

Investigators confirmed that bloodstains found on the front porchbelonged to Nancy, and her pacemaker app was disconnected from her phone line during the predawn hours, signaling a violent removal from the residence.

A Shift in Strategy

On February 27, 2026, the Pima County Sheriff’s Department announced a “refocusing of resources.” While the search remains an active investigation, the large-scale presence of patrol units and the FBI’s mobile command post in Tucson have been scaled back.

• FBI Relocation: The FBI has moved its primary operations for the case from Tucson to Phoenix, where they can more effectively analyze the “massive amount of data” collected, including over 23,600 tips.
• Localized Detectives: The Pima County Sheriff’s Department clarified that while fewer officers will be visible, a dedicated team of detectives is working the case around the clock.

The $1 Million Reward

In an emotional video message shared on February 24, Savannah Guthrie and her siblings, Annie and Camron, announced a $1 million reward for information leading to Nancy’s recovery.

“If you’ve been waiting and you haven’t been sure, let this be your sign to please come forward. Tell what you know, and help us bring our beloved mom home,” Savannah pleaded in the video.

This is in addition to the $100,000 reward offered by the FBI. Since the family’s reward was announced, more than 1,500 new tips have flooded into the 1-800-CALL-FBI tip line.

Investigation Challenges

Despite several purported ransom notes demanding cryptocurrency (sent to local media outlets like KOLD-TV and TMZ), authorities have yet to receive “proof of life.”

• Digital Forensics: Experts believe a “getaway vehicle” is the most critical piece of evidence currently being sought. Investigators have seized multiple vehicles, including a Range Rover and the car belonging to Savannah’s sister, Annie, as part of the standard forensic sweep.
• DNA Evidence: While DNA was recovered from the home, sources indicate it may be “low-level” and has not yet yielded a definitive suspect profile.

Savannah Guthrie’s Status

Savannah Guthrie has been away from her anchor desk at TODAY since the abduction began, skipping her planned coverage of the 2026 Winter Olympics to remain in Arizona with her family. NBC has stated they are “fully supportive” of Savannah and that there is no current timeline for her return to the show.

How You Can Help

Authorities are asking residents in the Catalina Foothills and surrounding Tucson areas to review any home security or dashcam footage from the overnight hours of January 31 to February 1.

• Suspect Description: A masked individual, approximately 5’10” to 6’0″ with a medium build, was seen on the property.
• Contact: Anyone with information is urged to call 1-800-CALL-FBI (1-800-225-5324). Tips can be submitted anonymously.

As we reflect on 2025, it is hard to ignore the constant drumbeat of negative headlines: elevated geopolitical tensions, ongoing conflicts, trade frictions, and a broader shift toward de-globalisation. Yet, despite this backdrop of uncertainty, global equity markets once again delivered strong returns—another reminder that markets often advance not in the absence of risk, but in spite of it.

Market backdrop and performance

Table 1.

2025 market and fund returns.

Index/Fund	2025 Return
AGV Capital	26.3%
S&P 500	17.9%
MSCI ACWI	22.9%
MSCI China	31.4%
Hang Seng Index	27.8%
Vanguard Total World Stock (VT)	22.4%

All performance figures are calculated using the Time-Weighted Rate of Return (TWR), which eliminates the impact of external cash flows and reflects the pure investment performance of the portfolio.

As the old Wall Street adage goes, the market climbs a wall of worry. In 2025, investors had no shortage of reasons to worry—wars, tariffs, interest-rate concerns, and an uncertain macro outlook—yet markets moved higher as businesses continued to grow revenues, earnings, and cash flows.

China, concentration, and where the real opportunity was

In last year’s annual letter, we laid out a clear, contrarian thesis. We tilted our allocation decisively toward China at a time when the consensus was widely viewed as unattractive by the market. In 2024, we placed approximately 86.0% of the portfolio in Chinese equities. That positioning proved well justified in 2025, as the MSCI China Index delivered a total return of 31.4%—its strongest year in nearly a decade—and significantly outperformed the S&P 500 total return of 17.9%.

Meanwhile, the S&P 500 itself became even more concentrated. Index levels of concentration reached extremes not seen since the 2000 internet bubble and the roaring 1920s, with the so-called “Magnificent Seven” accounting for roughly 34.0% of the index and contributing about 42.0% of total returns, driven largely by strong investor enthusiasm and momentum around AI-related themes. Excluding the Mag 7, the S&P 500 would have delivered a return closer to 10.0%, roughly in line with the S&P 500 Equal-Weighted Index at 11.0% and Vanguard’s Total US Stock Market Index at around 11.0%.

Figure 1.

Rising impact of the largest 7 U.S. stocks on index returns (1999–2025).

Figure 2.

fiop-7 stock concentration in U.S. market (1920–2025).

Current levels approach 1929 peak, surpassing dot-com era.

In a year when many active US-focused managers struggled to beat a Mag-7-driven benchmark, we delivered a gross return of about 26.3% while deliberately avoiding the US AI bubble and lofty valuations. We stayed anchored to our principles: buying high-quality companies at great valuations. As a result, we outperformed the S&P 500’s 17.9% and the MSCI ACWI Index’s 22.9%. This reinforces an important lesson: earning excellent returns is not about chasing whatever is fashionable; it is about owning great businesses at sensible prices.

China vs. the Magnificent Seven: who really delivered?

In last year’s letter, we compared a basket of leading Chinese large caps to the celebrated US Magnificent Seven and argued that price and sentiment were pointing in opposite directions. In 2025, that thesis played out in real time. On average, our China basket—Alibaba, BYD, Tencent, Baidu, PDD, and JD.com—returned roughly 30.0%, while the US Magnificent Seven as a group delivered about 22.0%.

Few would have expected the supposedly “uninvestable” Chinese names to outpace their highly praised US counterparts, especially in a year when the Mag 7 enjoyed an AI-driven momentum tailwind and investors were convinced they would “change the world.”

Figure 3.

2025 returns: AGV China tech basket vs. Magnificent Seven (total return, %).

AGV China Tech basket outperformed by 8 percentage points.

As the late Charlie Munger put it, the job is to fish where the fish are. For us, that means using our global mandate to go wherever the real opportunities lie—China, the US, or elsewhere—rather than hugging a single index simply because it feels familiar or popular with the crowd.

Looking through the lens of a holding company

We view the fund as a holding company. When we buy a stock, we think of it as owning a slice of a real business—its revenues, earnings, and cash flows—rather than just a ticker on a screen. To make this concrete, we aggregate the underlying fundamentals of every share we own and translate them into revenue, earnings, and free cash flow per fund unit. This approach allows us to judge our performance the way an owner would: through fundamental growth, profitability, portfolio quality, and valuation.

In 2025, our portfolio companies grew revenues by about 30.1% and earnings by 31.0% in US-dollar terms. In the local currencies in which they report, revenues grew 25.6% and earnings 26.6%, with the difference largely driven by dollar weakness and FX translation effects.

Table 2.

Revenue and earnings growth comparison (YoY).

As you will see in the growth tables in the report, our companies delivered outstanding growth—substantially higher than the major indices we consider relevant benchmarks. Our roughly 26.3% gross fund performance for the year came almost entirely from this earnings growth. We did not benefit from multiple expansion; returns were driven by fundamentals, not rising valuations.

Valuation: strong returns without paying up

This lack of multiple expansion is visible when we compare our portfolio’s valuation today with last year’s. Despite the strong performance, our portfolio remains cheaper than, or broadly in line with, last year’s levels on most valuation metrics, and continues to trade at a meaningful discount based on our assessment of underlying fundamentals.

Table 3.

Valuation multiples.

Valuation Multiple	TTM FY 2024	TTM FY 2025
Price-to-Sales	0.9x	0.8x
Price-to-Operating Income	9.9x	10.1x
Price-to-Earnings	11.9x	10.7x
Price-to-Operating Cash flow	5.7x	7.9x
Price-to-Free Cash Flow	7.4x	11.8x

When we set these valuations against those of major indices, the contrast becomes even clearer: our holdings trade at a substantial discount to global indices on earnings, sales, and free-cash-flow measures, while offering higher dividend yield and stronger underlying growth. That combination—better businesses at lower prices—is exactly what we look for.

Table 4.

Portfolio quality: returns on capital and profitability

Valuation is only half the equation; quality matters just as much. In 2025 we improved the quality of the portfolio meaningfully. Our return on equity rose from around 17.8% to over 22.3%, and our return on capital employed increased from roughly 17.0% to just over 20.0%. Internal reinvestment ROIC also improved, showing that incremental capital is being deployed at very attractive rates of return.

Table 5.

Portfolio quality metrics.

When we compare these metrics to the major indices, the gap is evident. Across Return on Equity, Return on Capital Employed, and Return on Invested Capital, our portfolio companies earn meaningfully higher returns on capital than the broad indices, highlighting both superior business quality and better capital allocation.

Table 6.

Profitability comparison.

Geographic allocation: China still leads, diversification expanded

Our current geographic exposure compared with last year reflects both conviction and select diversification. We reduced our China exposure from the mid-80s to the high-70s and introduced two new regions—Denmark and Brazil—where we found exceptional businesses that meet our criteria. The US allocation also increased modestly as select opportunities emerged at reasonable valuations. We remain willing to go wherever the risk-reward profile is most attractive, rather than sticking to any home-market bias. The table & chart below summarizes our geographic allocation at year-end.

Figure 4.

Table 7

Geographic allocation

In addition to geography, we also manage diversification by business model and sector. The chart below shows our sector allocation as of year-end and comparison of last year, highlighting where we are finding the most compelling opportunities today.

Figure 5.

Sector allocation – year-on-year comparison (% of portfolio).

TTM = trailing twelve months

Putting it all together

We approach public markets with the mindset of business owners. Investing, to us, is akin to owning a family business: you focus on the long term, the durability of the model, the integrity and alignment of management, and the price you are paying relative to intrinsic value.

Our strategy is simple but demanding in practice:

• Own high–quality companies with durable competitive advantages.
• Partner with management teams whose incentives are aligned with shareholders.
• Pay prices that build in a margin of safety.
• Look globally, not locally, for the best mix of quality and value.

In 2025, our companies grew earnings by more than 30.0%, trade at valuations that remain well below global market averages, and exhibit higher returns on capital than the indices. This combination drove approximately 26.3% growth in the fund, allowing us to outperform the benchmarks while still leaving what we estimate to be roughly 30% undervaluation in the portfolio. If valuation gaps were to narrow and our holdings were to move closer to assessed fair value, this would imply meaningful upside potential, before considering any additional fundamental growth.

On top of this, our portfolio offers an estimated total shareholder yield of about 4.8%, combining a 2.9% dividend yield with 1.9% buyback yield. Even without assuming incremental growth, a convergence toward fair value would, in such a scenario, represent a material contributor to forward returns over time.

We are very optimistic about our holdings. We believe the companies we own are high quality, attractively valued, and well diversified by business model and geography. We also believe deeply in alignment: we invest alongside you in the fund, and I have personally increased my investment, reflecting my conviction in the opportunity ahead.

We hope this report gives you the clarity we would want if the roles were reversed and we were in your seat as shareholders. As always, thank you for your trust.

Kind Regards,

Khalid Saud Alaamry

info@alaamira.com

Other People are Reading