Welcome to the second quarter 2025 review of the Matco Global Equity Fund. So, where to begin? From tariff turmoil to market pivots, we saw an increased amount of volatility in the second quarter. As we've said before, long-term investors are rewarded for navigating volatility and keeping their focus on the long game.
The levels of US debt policy, tariff policy, and deceleration in global growth and increased geopolitical issues are all real risks. However, in our view, at the right valuation, we feel that we are being compensated for that incremental risk with higher potential reward.
The April market selloff presented an opportunity for us to make some adjustments. We trimmed and exited a few of our more defensive names in favor of more growth oriented investments. Colgate-Palmolive, for example, has been a defensive name within the portfolio for some time. But in a period where growth valuations reached attractive discounts, it made sense for us to reallocate some of our invested capital to a higher growth opportunity.
We added to positions in Spotify and initiated a position in Monolithic Power Systems, for example. By making shifts in this exposure, we're positioning ourselves for continued monetization of a subscription business and capitalizing on the step up in technology spending.
Over the quarter, ending June 30th, 2025, the Matco Global Equity Fund Series O has gained 5.2%. Year-to-date, the fund is up 4.3% and in the last year, the fund has gained 10.7%. In the last 3 years, the fund's gained 15.9% per year. And in the last 5 years, the fund has gained 12.8% per year.
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