The Infusive Consumer Alpha Global Leaders Fund delivered +1.98% in January. These numbers are net of fees for our USD A Class (ISIN IE000OJ39GO8). For more detailed metrics, please refer to the attached factsheet.
While headline indices moved modestly higher, underlying market activity was far more dynamic, marked by significant dispersion and sector rotation. Investors rotated aggressively across themes as leadership broadened, capex scrutiny intensified, and macro-political frictions re-emerged, creating pockets of both opportunity and volatility.
Rotation in Market Leaders
During the month, there was a significant shift in market leadership. While the cap-weighted S&P 500 gained a modest 1.4%, the equal-weight version rose 3.4%, reflecting a significant broadening of the market beyond the mega-cap tech cohort. This was most visible in the Russell 2000, which rose 5.4% and saw a historic 14-day streak of beating large caps.
Within our universe, this manifested as a powerful “Staples over Discretionary” trade. Consumer Staples (+1.66% attribution) acted as the portfolio’s defensive engine, while pockets of Consumer Discretionary (-0.09%) met friction. The Fund capitalized on this flight to value through our core holdings in “Essential Retail.” Costco Wholesale (+0.48%) and Walmart (+0.32%) led the charge; Costco’s 34% surge in digital sales continues to prove that scale and loyalty can act as powerful drivers during periods of macro uncertainty.
The Shifting Capex Narrative: Micron vs. Meta
The market is drawing sharper distinctions within the AI theme, moving from broad euphoria to selective scrutiny of capital expenditure. Performance was bolstered by Micron Technology (+0.40%), a primary beneficiary of the hardware “utility” phase. As a critical provider of High Bandwidth Memory (HBM), Micron supplies the ultra-fast memory that sits next to AI processors and prevents data bottlenecks — effectively the fuel line that keeps an AI engine running at full speed. This capability underpins not just data-centre build-outs, but a growing range of consumer-facing outcomes — from faster search and recommendation engines, to smarter devices, to robots and digital services — reinforcing Micron’s pricing power and strategic relevance amid persistent structural supply constraints.
In contrast, investor appetite for large-scale infrastructure spend is becoming more discerning. Meta Platforms (-0.36%) appeared among our bottom performers for the month despite delivering an exceptionally strong $60 billion revenue quarter. The market’s initial reaction reflected emerging “capex fatigue,” following guidance that 2026 investment could reach as high as $135 billion. This reaction highlights a clear shift in the cycle: investors are no longer granting open-ended approval for AI build-outs without near-term proof points. That said, Meta’s position is nuanced — Mark Zuckerberg is signaling conviction by leaning into investment at scale, supported by a highly profitable advertising engine and a balance sheet capable of absorbing execution risk. While outcomes remain uncertain and returns will take time to evidence, the strategy reflects a deliberate choice to position Meta for relevance in the next phase of AI-driven consumer platforms, rather than optimize solely for near-term sentiment.
Fed Independence and the “Trump Factor” in Payments
January gave us a textbook example of headline policy risk briefly overwhelming fundamentals in high‑quality franchises like Visa and Mastercard, and we used that dislocation to add. In early January, President Trump proposed a one‑year 10% cap on credit‑card interest rates, framed as an affordability measure for households facing APRs in the low‑20s, but light on detail and dependent on Congressional action. The announcement nonetheless triggered a swift risk‑off move in card‑exposed names, with Visa and Mastercard selling off in the low‑ to mid‑single digits over a few sessions as investors rushed to re‑price regulatory risk.
Crucially, that volatility came just as both networks reported excellent December‑quarter results. Visa delivered mid‑teens revenue and EPS growth on the back of solid payment volume and transaction gains, while Mastercard posted similarly robust mid‑teens revenue and roughly 20‑plus percent EPS growth, supported by healthy gross dollar volume and strong cross‑border spend. In each case, faster‑growing value‑added services underscored that these are diversified, global payment platforms rather than simple “swipe‑fee” or interest‑spread stories.
For long‑term investors, this combination of strong fundamentals and sentiment‑driven drawdown is precisely the kind of set‑up that can create opportunity. Political rhetoric can inject short‑term volatility into otherwise steady compounders, especially where business models touch consumer costs and election narratives, but Visa and Mastercard ultimately earn network fees on global payment flows and remain structurally levered to the secular shift from cash to digital payments. We viewed January’s move as a temporary mis‑pricing of asset‑light cash compounders facing noisy but manageable policy risk, and we used the volatility to add at more attractive prospective long‑term returns for the portfolio.
Looking Ahead
January’s performance validates our focus on Consumer Alpha. By balancing the “Essential Moat” of staples like Costco with high-growth infrastructure plays like Micron, we have built a portfolio designed to navigate a world of rising geopolitical flashpoints and shifting policy. As we move into February, our focus remains on identifying the companies turning this capital-intensive phase of innovation into durable, bottom-line earnings.