SWCM - Ask Me Anything (AMA)

Thank you to everyone who joined our recent Ask Me Anything session. It was a great opportunity to walk through current market conditions, share updates on portfolio positioning, and answer your questions directly. Below is a summary of the key topics we covered during the call.

 

Investment Philosophy
We revisited the three principles that guide Sullivan Wood Capital Management:
• Value – Investing in businesses trading below intrinsic value.
• Concentration – Maintaining a focused portfolio of high‑conviction positions.
• Time – Allowing investments the opportunity to compound and realize long‑term value.
Our approach remains centered on owning great businesses rather than reacting to short‑term market movements.

 

Portfolio Performance
Jim reviewed strong year‑to‑date results for the value portfolio, following a solid prior year. Key contributors included Galaxy Digital, Alphabet (Google), UnitedHealth Group, and Energy Transfer. While not all accounts are at new highs yet, many are close due to the strength of last year’s performance.

 

Market Outlook
Jim shared that he does not view the market as significantly overvalued. Valuations appear reasonable, and he expects inflation to continue easing, interest rates to trend lower, and the Federal Reserve to eventually take a more dovish stance. While certain areas—particularly high‑growth tech and semiconductors—look expensive, he does not anticipate a prolonged downturn, though normal pullbacks should be expected.

 

Key Investment Discussions
We covered several major holdings and areas of conviction:
• Galaxy Digital – High‑conviction position with long‑term upside potential.
• SoFi Technologies – Strong fundamentals not yet reflected in the stock price.
• Nubank – Compelling growth in Latin America and expansion into the U.S.
• Celsius – Continuing to add based on valuation opportunities.
• Alphabet & Amazon – Strong long‑term holdings supported by AI, cloud, and core business strength.
• Bitcoin & Digital Assets – Positive long‑term outlook as blockchain adoption accelerates.
• STRC (MicroStrategy Preferred) – Attractive yield with tax‑efficient characteristics.

 

Income Portfolio Outlook
For income‑oriented investors, Jim expects improved performance over time as interest rates eventually decline. Several high‑yield positions may benefit from both appreciation and strong dividend income.

 

Opportunities in Software
We also discussed opportunities emerging in software companies that have sold off due to AI‑related concerns. Names such as Microsoft, Salesforce, ServiceNow, and Adobe may offer attractive long‑term value.

 

Retirement Planning: Roth Conversions
Jim provided an overview of when Roth conversions may make sense—particularly for retirees or those in lower tax brackets—while emphasizing the importance of coordinated tax planning.

 

Closing Thoughts
Jim closed the call by sharing that Sullivan Wood Capital recently surpassed $100 million in assets under management. He remains optimistic about long‑term returns and sees continued opportunities in several core holdings.

 

Thank you again for attending and for your continued trust. If you have follow‑up questions or would like to discuss any of these topics in more detail, don’t hesitate to reach out.