Global Equities

Dear Investor,

We provide this monthly report to you following conclusion of the month of February 2026.

Global equity returns were mixed in February as rotation away from technology gathered momentum. MSCI World returned 0.6%, while the S&P 500 was dragged down by incumbent names to -0.87%. Japan outperformed with the Nikkei posting a 10.4% gain following the landslide electoral victory for Sanae Takaichi.
Global Listed Infrastructure performed well for the month, with the TAMIM Global Listed Infrastructure strategy up 5.8% for the month and up +1583% over the last 12 months. There were gains across the board, with the US and Japan being the main contributors to active outperformance.

The best performing stock for the month was US healthcare provider Tenet (+26.5%) following Q4 results materially ahead of expectations. Mitsui OSK (+18.4%) was also a strong performer with updated guidance. Other notable performers were Deutsche Telekom (+20.9%), Quanta Services (+18.6%), and Hokkaido Electric (+17.3%). The worst performing stock was Proximus (-9.8%) following a poor earnings announcement late in the month where its global segment saw a significant EBITDA decline.

The Supreme Court overturned the Trump Administration’s tariff regime, stating the President had exceeded his authority under IEEPA. This is a significant setback for the Administration’s assertions of presidential power, although it is unlikely to mark the end of the Trump tariff regime. While a number of other options remain for the imposition of tariffs, all are more cumbersome and limited in comparison to IEEPA. This decision will ultimately fuel further uncertainty for economic decision-makers across the globe, delaying new investment. Compounding this problem is the likelihood that the Republicans will lose the midterm elections.

We wrote last month about AI fears causing a rotation away from long-term market incumbents. The AI immunity trade, or HALO (Heavy Assets, Low Obsolescence), is now the dominant market theme. While the S&P 500 is only marginally off all-time highs, the violent shifts away from perceived AI victims have been profound. Listed infrastructure has been one of the significant beneficiaries of this move, and we see the trend continuing. We tend to agree with the market that the age of ‘asset-light’ business models is likely coming to an end; however, we stop short of apocalyptic labour displacement narratives. The physical constraints around AI—semiconductor capacity, data centres, and energy—are well known and prevent the large-scale adoption required to displace labour. Even so, this infrastructure will remain in high demand and, we believe, command higher multiples going forward.

Valuations remain attractive in Europe relative to the US. We expect tailwinds for the German economy from infrastructure stimulus combined with efforts to soften climate policy in favour of industrial competitiveness. More broadly, the rotation away from US growth equities has seen meaningful capital flows into European industrials and utilities, a trend we expect to persist.

So far this year, China has been an unloved segment of the market. Following a strong rebound last year, the bar for positive surprises is high while macro and earnings realities are soft relative to these expectations. The property overhang remains a key drag in the near term: weaker real estate and construction activity feeds through to much of the economy, blunting the impact of targeted support for AI, semiconductors, and “new infrastructure.”

Persistent deflationary pressure in producer prices and soft domestic consumption mean many companies still struggle to pass on costs, limiting margin recovery. The longer-term fundamentals for China remain compelling; the enormous amounts of energy being added to the grid give it significant competitive advantages in future energy-intensive industries. Price multiples remain low compared to regional counterparts, in large part due to elevated geopolitical and regulatory risk premiums.

Trump and Xi are scheduled to meet at a summit in early April, which for Republicans could be crucial to maintaining control of the House. While we see the probability of a ‘big beautiful deal’ as low, any sort of concessions toward China would go a long way toward lowering geopolitical risk. Even a modest improvement could unlock large capital pools from international investors who remain structurally underweight. Domestic households sit on roughly USD 20+ trillion in bank deposits as property loses its appeal and deposit rates grind lower—a dynamic that can provide a persistent local bid. The strategy maintains cautious positioning in China but remains alert to the potential for future upside.

We enter March constructively positioned while remaining mindful of the policy uncertainty emanating from Washington. The HALO trade has room to run, but tariff developments and the political calendar warrant vigilance. We continue to favour names with pricing power and tangible asset backing.