Magellan Asset Management, an investment management company, released the fourth quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on investing in outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 3.1% in the December quarter and 2.5% in AUD terms. The portfolio underperformed the benchmark this quarter, returning 0.1%, amid choppy trading and market rotation. The leadership began to shift from AI Mega Cap stocks to sectors with stronger fundamentals and better valuations. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Magellan Global Fund highlighted stocks like Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services, including online search and advertising, cloud solutions, and artificial intelligence, and is a significant contributor to the fund’s performance during the quarter. On April 2, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $294.46 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was -1.29%, and its shares gained 99.31% over the past 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $3.57 trillion.
Magellan Global Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2025 investor letter:
“The largest contributors to the portfolio’s performance over the quarter were Alphabet Inc. (NASDAQ:GOOG), Amazon and Taiwan Semiconductor Manufacturing Co (TSMC). Alphabet performed strongly over the quarter, driven by earnings that beat expectations and reinforced confidence in the company’s ability to leverage its “full stack” approach to lead in the AI era, rather than be disrupted by it. The Search business showed strong momentum with the integration of AI Overviews, and AI Mode accelerated growth by driving higher query volumes and monetisation. Later, the launch of Gemini 3 bolstered sentiment, given its reception as the new benchmark for AI models. YouTube provided further upside with robust performance, as Shorts revenue per watch hour surpassed that of traditional long-form content. Alphabet also announced that it will begin commercial sales of its custom Tensor Processing Units (TPUs), a new revenue stream for the company, and a potential challenge to Nvidia’s dominance in the AI hardware category.”
