To: Martijn Van Vliet Subject: Candoris weekly: EPS growth off the charts, next 10y return S&P 500, Semi's, Hyperscalers, EME dead as a diversifyer? April numbers! Thread-Topic: Candoris weekly: EPS growth off the charts, next 10y return S&P 500, Semi's, Hyperscalers, EME dead as a diversifyer? April numbers! Thread-Index: AQHc3h0CalQs8iLW3ku7jOmowLNYRA== Date: Thu, 7 May 2026 12:28:29 +0000 Message-ID: Content-Language: en-GB X-MS-Has-Attach: X-MS-TNEF-Correlator: X-MS-Exchange-Organization-RecordReviewCfmType: 0 Content-Type: multipart/alternative; boundary="_000_AM6PR02MB4263C770659452F2E7872E4EBE3C2AM6PR02MB4263eurp_" MIME-Version: 1.0 --_000_AM6PR02MB4263C770659452F2E7872E4EBE3C2AM6PR02MB4263eurp_ Content-Type: text/plain; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Candoris weekly update provided by Martijn van Vliet: As of May 4, 2026 for professional investors only Macro Economy/ Markets - Strategies offered by Candoris Scroll down for the charts used and weekly summary Click here to play the update * When p= ictures do not open in your outlook, click here to view them in PDF) ________________________________ -This week: 6 May at 15:00 CET, 20 min update on EMD: VanEck Emerging Marke= ts Debt Fund Update Let's start with an Earnings season update -Earnings are coming in far above already high expectations, driven by stro= ng margins and big tech outperformance -This keeps market valuations in check: prices rise, but P/E ratios stay st= able because earnings grow just as fast -Key nuance: revenue growth is solid but lags earnings, so the story is mar= gin-driven, which may not be sustainable long term Look at S&P 500 Today vs 31 Mar: 27.1% earnings growth!!!! Wow.... [03-sp500-earnings-growth-q1-2026] ________________________________ Revenue growth is solid, but less extreme [04-sp500-revenue-growth-q1-2026] source: Factset ________________________________ As you can see, the market isn't cheap at all, but the dark blue line takes= off [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/ca3bb89c-71d4-4a10-a34f-fb9061d07cf6/upload_2999191810689280813_baeb098d-= 7305-434a-aaed-7bb4ec8dd456.png] ________________________________ And yes EPS growth is narrow, but it is expected to continue at elevated le= vels and the Median stock is expected to grow earnings at very decent level= s as well.. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/0f742f8d-e3c4-4a68-a689-bd473a22404a/upload_2650877196066000427_911a680b-= 88ff-4951-94c9-21c791cbb632.png] ________________________________ You see these charts quite a bit now and even though I used them myself as = well to paint a reason to diversify away from S&P 500 to for example US Sma= ll Caps and EME I like to throw in one thing: What was the earnings growth at previous 20/2= 1 P/E levels? [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/c18c4c47-74b1-4e5e-9d42-64e9337011ec/upload_5845303064025825118_06067d48-= 8180-4cf5-b7fa-4920d37eb36d.png] ________________________________ With 15-30% earnings growth, forward P/E drops from ~20 to a P/E of ~15 in = 2 years... Perhaps better to also look at the PEG ratio *PEG Formula: \(\text{Forward P/E} \div \text{Long-Term Earnings Growth} = =3D \text{PEG}\). [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/9ecd9c9c-3705-48b5-b806-d36c3918f883/upload_1522131976023459496_3100915d-= 77f0-4e8c-b741-592d92433d52.png] ________________________________ Semiconductors are leading the recent rise in the markets: [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/15d8215f-3769-414a-b968-e718d717c308/upload_3293371356662879811_c7a66ba4-= abd9-4c7d-a67a-a674c2e873ac.png] ________________________________ Economic growth might accelerate if semiconductor price rise is again the l= eading indicator it has been in the past Or are Semiconductors simply up way too much? [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/a5ca2896-51d3-437f-826a-13a8bdbfeae2/upload_1223235926443134534_f5e2805e-= 0638-4dc8-8f3a-5d8e0c336192.png] ________________________________ in fact it seems to be coming.. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/53094989-6157-450e-9dad-be76d9c22591/upload_677584344524772187_35764b5a-2= d78-4af1-a026-eb5c5c2d0763.png] ________________________________ Despite the high oil prices, but the importance of oil is so much smaller t= han it used to [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/b433b5bc-e72c-4edc-b2da-e564f646c6cb/upload_7743666682553952391_08bdcc7a-= 63ad-440a-ad4b-a9d857d2d0b1.png] Source: THE BIRB NEST @TheBirbNest Chartles Henry Monchau ________________________________ Hard to imagine, but the backlog is getting larger, more capex might be mor= e logical than less.... [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/e2ddeece-9989-4b25-8a9e-3f64ceefc5a7/upload_5572934343185831215_15d67cf7-= 5f4a-408a-b18d-1039e426aa7c.png] source: Steno Research ________________________________ Hyperscalers keep pushing up their investments, but is this sustainable? [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/ded5f79c-ab58-4a1e-b095-225deb257c1c/upload_2781763062564717635_a1b0d055-= 3a5a-4954-aac6-27c232183e5f.png] ________________________________ Our EME manager Letko Brosseau is providing insight from the other side of = the coin: * April=92s MSCI EM performance is an outlier, largely driven by a hand= ful of top Information Technology stocks. * The rally in names like TSMC, SK Hynix, Delta Electronics, and MediaT= ek is sentiment-driven, but there is caution due to potential data center o= verbuild. * The market assumes a sustained AI boom, but there are signs that infr= astructure spending is outpacing real revenue generation. * OpenAI illustrates this gap, with revenue underperformance and very l= arge long-term data center lease commitments. * The AI supply chain may be over-earning based on demand that is booke= d but not yet supported by end-user economics. * If funding conditions tighten or revenues disappoint, this could trig= ger a correction in both orders and valuations. * Strategy remains focused on value, favoring businesses with clearer, = self-sustaining cash flows over those dependent on external financing cycle= s. ________________________________ Fact is: Who would have thought the US economy would rise 75% nominal in 7 years, cr= azy... Yes inflation, but nominal rise is good for equities.. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/62b763ab-ee1c-458e-a8a7-369334efa984/upload_587146832777388868_e7a186f5-a= 48b-41fe-93f6-f009e7d788c8.png] ________________________________ over to the Markets: April saw the largest monthly rise in Nasdaq 100 in >2 decades [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/9e4a625d-4c2a-4b83-92ba-cdd56a6d796b/upload_5613014155814106182_8c20d5f0-= 849a-4816-b706-d9ce29bdf953.png] source: Bloomberg/Zerohedge ________________________________ Not as extreme for the S&P, but pretty impressive rise.. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/8ae47f12-e96a-446a-875a-85f19f275e96/upload_4300576585369634289_ec3876fb-= a9dc-414c-a988-3c55ec19dcea.png] source: Bloomberg/Zerohedge ________________________________ Mag 7 is back big time...SOX is King.. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/ce22e609-b253-4353-8a17-47823c66d867/upload_5272072541267046886_bc3fa2e4-= 5560-4871-aa17-f5d0c86a203b.png] source: Bloomberg/Zerohedge ________________________________ So far YtD US Small is in the lead [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/baf12ba9-42f1-4d3b-9ba9-bb1b065816b1/upload_5155997191169546055_bb6b5d53-= ccca-4b2d-a92c-1dea9ed1cfc3.png] ________________________________ Bank of Japan thinks ~160 is enough [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/a8d0fb96-aef1-49b1-9ea7-9eb26e5631de/upload_7545629933158671964_4fe8b979-= 1e17-4ddc-badc-63104ec82586.png] source: Bloomberg/Zerohedge ________________________________ Market Breadth is plunging again [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/52cf7fe9-5d7e-4d9b-9cdf-a43c6e8662e6/upload_224493797018596852_6dd25e3a-0= 35e-46d4-91f3-aa140fb7d5d3.png] ________________________________ EME * EM equities traditionally offered diversification through different e= conomies, valuations, and sector exposure * Indices are now more concentrated and tech-driven, with TSMC, Samsung= , and SK Hynix making up ~21% of MSCI EM * This reduces both sector and geographic diversification and increases= exposure to tech-related risks * Key question: do EM equities still provide real diversification? The index and many active managers do not provide diversification via EME a= nymore the way they used to We have one that does, see 2nd section of this update [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/55c36f00-d0de-41fb-8adc-b3d12787ad2f/upload_157311093752620834_5695923f-c= 866-4d1c-8594-01f4fc12774c.png] ________________________________ Record low levels of jobless claims, in a labour market that is substantial= ly larger than in the 70-80-90ies... Is this a sign Friday's jobless numbers will be strong? [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/3b09e7f1-2666-40ad-b63b-deeb48d47129/upload_6293198362346686686_77c66ed6-= 773a-40e7-8ce9-76477148a2a4.png] source: Bloomberg/Zerohedge ________________________________ Where do we stand on oil..? [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/ed3361b9-fafa-4616-9a2d-7ebd8c857f88/upload_2501175002438111128_064826bb-= 2d79-4003-9d48-3afde470405c.png] ________________________________ Other Paying dividend is a thing of the past, earnings growth and stock buy backs= is what matters [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/3363569b-b8ee-4cd7-bdb7-2100271a084c/upload_6999052519264197202_a29315e6-= eab7-4800-aa46-cff3a87d6127.png] ________________________________ Other [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/96c0c7dd-7482-4fbe-be4a-a9634b3464f8/upload_8385542943671853860_ceb805b0-= 4c14-4580-b7bd-42d87130fd0c.png] ________________________________ Other The World is a different place, EM Local Bond volatility nowadays need a wa= r in the Middle East, oil shock to get to the same volatility as DM Governm= ent Bonds More in Wednesday's update: 6 May at 15:00 CET, VanEck Emerging Markets D= ebt Fund Update [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/ed0ed4e1-9cb7-46dd-a4c6-5eb97ff9ec8c/upload_979645472487629061_a1bd1520-2= 16a-4ad2-9006-e552ccf4c49f.png] ________________________________ Other April 2026, forest fires in The Netherlands with smoke that reaches the UK,= crazy... [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/6c26c347-a2b0-479c-b104-47f9e7461652/upload_7369206446726525333_bcbf34e2-= ac78-4ec0-a23d-4d2e46e86180.png] ________________________________ Week ahead.. Payrolls [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b= 3/files/eb05080e-e4e2-4efc-ade0-85bca5a824bf/upload_7838974328026549592_9a0= 52a39-8741-4a98-8277-62c044f66610.png] [https://gallery.freshmarketer.eu/9582de29-74= a7-3ed0-a39c-6fee9c0620b3/files/702fc316-a027-4092-863c-34c56cfc77a0/upload= _1888201233603342195_7ca6cc8a-2e95-47f5-98bb-d6112a97e9b7.png] ________________________________ Upcoming trips with portfolio managers Kevin Power, Portfolio Manager of the SiM High Yield Opportunities strategy= , will be in Europe for a roadshow from 18 May to 22 May 2026 18 May The Netherlands 19 May The Netherlands 20 May Finland 21 May Denmark 22 May Portugal Alex Letko of the Letko Brosseau Global Emerging Markets strategy, will be = in Europe for a roadshow from 21 Sept to 25 Sept 2026 21 Sept TBD 22 Sept TBD 23 Sept TBD 24 Sept TBD 25 Sept TBD We would be pleased to visit you, please email to candoris@candoris.nl to indicate your interest. Upcoming Online Updates Click on the strategy name to subscribe or reply to this email. The up date= s take 20 minutes and are provided by the portfolio manager! * 6 May at 15:00 CET, VanEck Emerging Markets Debt Fund Update * 13 May at 15:00 CET, Orchard US Small Cap Value Update * 4 June at 15:00 CET, NCG US Small Cap Growth Update * 2 Sept at 16:00 CET, SiM US High Yield Opportunities Update * 9 Sept at 15:00 CET, Letko Brosseau Global Emerging Markets Equity U= pdate * 23 Sept at 15:00 CET, NCG US Small Cap Growth Update * 4 Nov at 15:00 CET, Orchard US Small Cap Value Update Upcoming Online Meeting Week Week dedicated to one-to-one online meetings to go in-depth on the philosop= hy, process and portfolio. SiM High Yield Opportunities with PM Kevin Power 11-13 May: 16:00-17:00 CET 26-28 May: 16:00-17:00 CET ________________________________ Summary strategies offered by Candoris: Fixed Income: Strategic income Management US High Yield Opportunities: The SiM US HY strategy is a high conviction, high alpha generating strategy= . The unique, pragmatic and counter-cyclical approach to investing in US HY= has lead to superior returns with less risk (down-market capture 89.5%). S= iM manages USD 2.8 billion in US HY only and a daily liquid Art. 8 UCITS fu= nd is available with an AUM of USD 366 million: ISIN Code: IE00BF1XKP70 As per Q1, 2026 the Strategic income Management (SiM) US High Yield strateg= y has an annualized outperformance of 2.31% over the BofAML US High Yield i= ndex, outperforming all of peers according to eVestment since inception in = 2011. SiM also achieved a clean sweep at the Lipper Awards, winning Best Gl= obal High Yield Manager over 3, 5 and 10 years. A core portfolio around lon= g term secular trends is complemented with out of favour sector and small c= ap issuer allocations. The team successfully employed the same investment s= trategy for more than 20 years. SiM is employee owned and employees invest = their own private wealth alongside you as an investor. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/= files/29acf974-7bfc-4856-88db-2730de472247/upload_6227375380294324870_37b0b= 28c-84b9-444b-99d5-0794dbcb66f3.png] source: FT ________________________________ Data till 31-03-2026: [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/f283868a-7bf6-4a32-84c0-fc1d9c2d1752/upload_1745015346235585958_7e14293b-= 04c8-47d5-a49e-3d88b4a9bd04.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/79651b23-5c39-40e0-8cec-e37c73097296/upload_6946477111441200750_a672f50b-= 4189-4e0a-bfea-96381340b03e.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/aba1d0c2-3178-43a1-b99f-7f7a8818f75b/upload_8685606201715931352_386d0eae-= ad50-4631-9c2b-5a42ede17c4a.png] Asset Class & Strategy Summary Presentation Peer comparison Factsheet Standard RfP Morningstar Why US HY Presentation Sustainability Related Disclosures Replay Latest Online Update SiM and its investment process explained in 12 min [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/fi= les/c9366896-13ec-4f2f-b3c6-e7ee22c2c4a4/upload_2458851594922546582_dc342e5= e-100c-495a-8b80-3a9c5be74608.png] CIO and High Yield Portfolio manager Gar= y Pokrzywinski [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/d3a7cd42-a9d6-4967-b710-018292c8ad43/upload_7848708700526335982_431afc97-= 9981-44f5-a271-f01c57c20f26.png] Bio: Gary Pokrzywinski of Strategic investment Management ________________________________ VanEck Emerging Market Debt: The VanEck Emerging Markets Bond strategy is one of the few truly flexible = EMD blend managers using the distinct risk and return characteristics of ea= ch of the three EMD sub universes (HC, LC, Corporates). A daily liquid Art.= 8 UCITS fund is available with an AUM of USD 180.7 million: ISIN code: IE0= 0BYXQSF37 As per Q1, 2026 the VanEck Emerging Markets Debt strategy has an annualized= outperformance of 1.91% over the 50% JPM EMBI & 50% JPM GBI-EM benchmark, = outperforming 74% of peers according to eVestment since inception in 2012. = The UCITS fund won the Lipper Award for best EMD fund Europe over the last = 3 and 5 years. A flexible approach is key to optimising portfolio risk/retu= rn using the distinct characteristics of each of the emerging markets debt = sub-universes. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/a6635475-7c4a-41d0-8c20-4637af7894a9/upload_4367232681701203241_08e308e7-= 4b3d-4947-b08d-c07ef073757a.png] source: FT ________________________________ Data till 31-03-2026: [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/4d12b711-4579-4f43-863e-017ea1cff9a4/upload_2491606980165341091_9196ff08-= 8103-487e-898c-a18e001a84b4.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/e3a8aef5-8644-444c-a52a-e0207c72b9b8/upload_6796754625750107104_661b1b65-= f7e0-4417-be2a-455c1ccc3c5f.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/6ae1e5d4-6b7d-43be-a2e6-2d39bcec64fb/upload_8468742073036892192_07bb4421-= 2c27-4914-854b-b2e5fa489926.png] Asset Class & Strategy Summary Presentation Peer comparison Factsheet Standard RfP Morningstar Sustainability Related Disclosures [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/fi= les/e34b0158-5f1d-4144-8475-3607c15766cc/upload_7395113027950222402_f48d0eb= 2-61c1-4bb5-a63c-4dfd65a80373.png] Lead Portfolio manager Eric Fine [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/62be0971-3aea-4f00-9bbb-ebcd2a204892/upload_8105548005396113066_f4fbed8f-= dc90-47ca-a090-985acf51d031.png] Bio: Eric Fine of VanEck ________________________________ Marsham Euro Transitional Issuers Fixed Income Marsham is a founder-led investment firm focused on fixed income, with a cl= ear edge: transitional bonds. These are bonds from companies actively movin= g toward lower-carbon, more sustainable business models. This theme is cent= ral to the strategy and supports Marsham=92s strong bottom-up performance. = The SFDR article 8 strategy targets issuers with credible plans to decarbon= ise or improve operations, not just those with green labels. Transitional b= onds are often undervalued and missed by standard ESG filters, offering bot= h impact and return potential. The Marsham Euro Transitional Issuers Fixed Income Strategy invests in list= ed corporate bonds, primarily in euros, across both high yield and investme= nt grade. ISIN code: IE00BMPS1X28:EUR All 3 funds (Euro, GBP and USD) will be made available in daily liquid art.= 9 UCITS funds with size! Presentation Factsheet Standard DDQ Awards Lead portfolio Manager [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/c4a08e49-0c5d-48c9-8bf3-cf5d2ba5e606/upload_5814828655042893103_672490af-= 9957-4944-ba7a-a40b34950393.png] ________________________________ Equities: Letko Brosseau Emerging Markets Equity Letko Brosseau is known for its long-term, value-oriented investment approa= ch. They focus on identifying companies with strong fundamentals that are t= rading at attractive valuations relative to their intrinsic worth. The emer= ging market equity strategy involves rigorous in-house bottom-up research a= nd analysis of individual companies supplemented with top-down analysis. A = daily liquid Art. 8 UCITS fund with an AUM of USD 115 million is available.= ISIN code: IE000LCBW880 As per Q1, 2026 the Letko Brosseau Emerging Markets Equity Strategy has an = annualised outperformance of 3.72% over the MSCI Emerging Markets index, ou= tperforming all peers according to eVestment since inception in 2011. Letko= Brosseau is an independent investment firm with a highly experienced inves= tment team. - Click here = for the Q1 attribution and commentary. - Click here f= or Impact on the Emerging Markets Fund from Middle East Conflict - Click here for = a detailed peer comparison of the strategy vs benchmark and peers. - Click here for E= ME place to be? And the last but not least, the 5y attribution report, that shows that all = of the >9% annualised outperformance comes from stock selection! - Click here for the attribution report [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/fi= les/864be848-6035-4e0c-adf9-49a87ae3eca8/upload_5744358309158663628_0f1ea56= 9-547f-41bb-ba6e-53ad16c52a38.png] source: FT ________________________________ Why Letko underperformed: The benchmark over the last 30 days has seen exuberance in a few tech names= =96 TSMC is of course one (+21%), but SK Hynix (+50%), Delta Electronics (= +48%) and MediaTek (+75%) are all within the top 10 of the index and have a= lso seen a steep increase. See below screenshot of top 10 index names and t= heir last month performance. You=92ll see some of the names we hold like Re= liance, Alibaba and HDFC Bank had flatter performance relative to these tec= h names. The Fund does hold Samsung, but at a 3.4% weight compared to the b= enchmark at 6% weight. The Industrials sector also had a strong month, but = proportionally represents a much smaller slice of the index compared to Inf= o Tech. [Image] The return in the MSCI EM index this April is indeed a historic outlier, an= d the concentration in the top 10 Info Tech names is the primary engine. Wh= ile names like TSMC, SK Hynix, Delta Electronics, and MediaTek have benefit= ed from a surge in sentiment, our decision to remain underweight or avoid t= hese names is driven by a fundamental concern that goes beyond simple valua= tion: the risk of a massive data center overbuild. While the market is pricing in a perpetual "AI gold rush," we are seeing in= creasing evidence of a disconnect between infrastructure spending and actua= l revenue generation. A key case in point is OpenAI. Despite the massive hy= pe, OpenAI has recently struggled to meet its internal revenue targets. Thi= s is particularly concerning given the scale of their liabilities; the comp= any has committed to approximately $1.3 trillion in lease payments to data = center operators over the coming years. The current buildout among these semiconductor and hardware providers is pr= edicated on the assumption that OpenAI and similar labs will have the liqui= dity to fulfill these massive obligations. However, with current revenues f= alling significantly short of these targets, OpenAI is becoming increasingl= y dependent on capital market financing rather than self-sustaining cash fl= ow to fund its operations and lease commitments. Our primary thesis for remaining cautious on these high-flying tech names i= s that we believe the supply chain=97from the chipmakers (TSMC, SK Hynix) t= o the power management providers (Delta Electronics)=97is currently over-ea= rning based on "booked-but-not-billing" demand that may not be supported by= the end-users' underlying economics. If the capital markets tighten or if = the revenue gap at the model-provider level doesn't close rapidly, we expec= t a significant correction in both the order books and the valuations of th= ese companies. We remain disciplined in our value-oriented approach, favoring sectors wher= e the cash flows are more transparent and less reliant on speculative finan= cing cycles. ________________________________ * EM equities traditionally offered diversification through different e= conomies, valuations, and sector exposure * Indices are now more concentrated and tech-driven, with TSMC, Samsung= , and SK Hynix making up ~21% of MSCI EM * This reduces both sector and geographic diversification and increases= exposure to tech-related risks * Key question: do EM equities still provide real diversification? The index and many active managers do not provide diversification via EME a= nymore the way they used to We have one that does, see 2nd section of this update [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/55c36f00-d0de-41fb-8adc-b3d12787ad2f/upload_157311093752620834_5695923f-c= 866-4d1c-8594-01f4fc12774c.png] ________________________________ Data till 31-03-2026: [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/7a3f6000-3b1a-421c-a7ed-2478c369bebf/upload_5899809672874323613_5d526e57-= 5427-41de-88c0-c566cf7b4c64.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/500b4648-37c4-4bb3-984e-32a660d14eb5/upload_4104403271582205862_4820c050-= be9a-41f4-bf29-73ee7381f129.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/70f5ae5a-3cde-4b51-bc98-3ae6085f9272/upload_6551934678959738917_f805a486-= dd7e-4b3c-a5fb-2f0567abbeb0.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/bbc3173c-4660-42f1-ae61-f5e822f73627/upload_2883238855765904351_1a94302b-= fd0f-46a3-82ec-9bd181c3a4c2.png] Asset Class & Strategy Summary Presentation Peer comparison Factsheet Standard RfP ESG Integration ESG Highlights Report Attribution Report and Commentary Replay Online Webinar [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/1334c0ab-dbfa-4cf9-a007-8c0144bd3a4a/upload_2614133920280666956_9033bb31-= 7ada-4d67-9aba-39f56b0bd5ef.png] Lead Portfolio Manager Rohit Khuller [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/e92d4c6e-354e-4522-9182-22d2897200b8/upload_1000546283476968711_b811f465-= 10fb-4b95-9c12-aba2929aa14d.png] Bio Rohit Khuller of Letko Brosseau ________________________________ Chart 1) US Small Caps versus Nasdaq, S&P 500, Dow 30 - August 1, 2025- Apr= il 20,2026 [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/05ad6b01-ffc7-462b-8dfe-7886d83e18de/upload_3595119217854324970_54813e8b-= 25f1-4eda-98c3-cb4557633d08.png] Next Century Growth US Small Cap Growth Equities The Next Century Growth (NCG) US Small Cap Growth Strategy is a high convic= tion, high alpha generating strategy that seeks to invest in the fastest gr= owing and highest quality small cap companies in America. A daily liquid Ar= t. 8 UCITS fund with an AUM of USD 55 million is available. ISIN code: IE00= 0TY23GV5 As per Q1, 2026 the Next Century Growth US Small Cap Growth Equity Strategy= has an annualised outperformance of 4.64% over the Russell 2000 Growth ind= ex, outperforming 91% of peers according to eVestment since inception in 19= 99. Next Century Growth is an independent investment firm with a highly exp= erienced investment team located in Minneapolis. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b= 3/files/974ded6b-6f89-48f3-ae48-f6ecbd9f73dc/upload_4604891026890855416_053= ebd1a-14c0-4b9b-b52f-b6cb02323319.png] source: FT ________________________________ Data till 31-03-2026: [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/e0f18853-0937-4816-a8fb-6b03992d76b2/upload_1767291507867261698_76afe86d-= a323-434c-ba2c-786cacc2816a.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/b2f7c38e-ed47-46f7-abd5-a6288aeef9c4/upload_8990618948896924317_a00d95a1-= bcd5-4a8d-9ef2-8579326fc29e.png] [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/ee2e98d9-dcda-4bfe-91f3-98d40b223853/upload_7957716068647923850_3a85a416-= c002-4809-805f-fff334e0af24.png] Asset Class & Strategy Summary Presentation Peer comparison Factsheet Standard RfP Morningstar ESG Policy Sustainability Related Disclosures Replay Latest Online Update Chairman, CEO, Portfolio Manager and Partner Thomas Press [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/747ac9c9-1bb8-4bd5-a633-6ab255c8875b/upload_7574641914598883917_06960ffe-= 6a42-4031-aaa6-a680c070074d.png] Bio: Thomas Press of Next Century Growth Investors ________________________________ Orchard US Small Cap Value Equities The Orchard US Small Cap Value strategy is a high conviction, high alpha ge= nerating strategy that identifies companies that trade at a significant dis= count to where they should trade at and have one or multiple catalyst to un= leash this intrinsic value. A daily liquid Art. 8 UCITS fund with an AUM of= USD 56 million is available. ISIN code: IE00BL0L0092 As per Q1, 2026 the Orchard US Small Cap Value Equity strategy has an annua= lized outperformance of 2.17% over the Russell 2000 Value index, outperform= ing 65% of peers according to eVestment since inception in 2001. Orchard Ca= pital Management is a research-driven value investment manager solely focus= ed on small cap value investing. As an independent employee owned boutique = based in Chicago they deliver superior returns through proprietary research= and a disciplined process. Long term US small cap value is the best perfor= ming segment of US Equities. [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/= files/74a68bf6-93e8-4d1b-be58-eab363860595/upload_3669944476388917342_4b684= 982-a621-4450-8f36-f29c6bb7faad.png] source: FT ________________________________ Data till 31-03-2026: [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/672f9ea9-7de1-4ec7-ab1f-720a78491815/upload_3852697276603002785_fbeb9149-= 8caf-4ebb-9e9c-eee01e153ef4.png] Asset Class & Strategy Summary Presentation Peer comparison Factsheet Standard RfP Morningstar Orchard's approach to ESG Sustainability Related Disclosures Replay Latest Online Update [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/82415957-6808-410a-b5ab-03c78f98876e/upload_5665024966665379132_9d8b133e-= 6f0a-4c8b-8fdc-d17abbfe2297.png]Founder and CIO Blake Harper [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/4cfdf1d8-b2c6-4707-863a-3309e9c1611a/upload_5644528911409631718_41f3eb65-= 63c0-4826-926e-decb07c065d3.png] Bio: Blake Harper of Orchard Capi= tal Management ________________________________ DSM Growth Equity: The DSM Growth strategies are high conviction strategies that invest in com= panies that have high earnings growth. A strict valuation discipline differ= entiates DSM from other growth managers. DSM capital manages USD 6.4 Billio= n in Equity strategies. DSM is an employee owned firm and employees invest = their own private wealth alongside you as an investor. -DSM had this chart below very correct: The fact that these companies had b= ecome in-expensive compared to their earnings... -Last week's online update was spot on related to earnings expectations, re= ply to this email for the replay [Image] DSM Global Growth As per Q1, 2026 the Global Growth Equity strategy of DSM has an annualized = outperformance of 1.03% over the MSCI ACWI Growth, outperforming 90% of pee= rs according to eVestment since inception in 2010. A daily liquid Art. 8 UC= ITS fund is available with an AUM of USD 142.9 million. ISIN code: LU10160= 61043 YtD +1.7% outperformance over the MSCI ACWI Growth BM Asset Class & Strategy Summary Presentation Peer comparison Factsheet Standard RfP Morningstar Stewardship Report Sustainability Related Disclosures Replay Latest Online Update Artificial Intelligence (AI) [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/e452c008-5921-46c7-bb91-71b6f7e7c5b1/upload_4264099508681162721_b864fe81-= 8b38-4c5c-88b3-abd03890ce18.png]DSM US Large Cap Growth As per Q1, 2026 the US Large Cap Growth Equity strategy of DSM has an annua= lized outperformance of 0.73% over the Russell 1000 Growth, outperforming 8= 6% of peers according to eVestment since inception in 2002. A daily liquid = Art. 8 UCITS fund is available with an AUM of USD 60.2 million. ISIN code: = LU1440728472 YTD +1.6% outperformance over the R1000G BM Asset Class & Strategy Summary Presentation Peer comparison Factsheet Standard RfP Morningstar Stewardship Report Sustainability Related Disclosures Replay Latest Online Update Artificial Intelligence (AI) [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/8b196114-6226-49c0-9be1-a1bd62ce095d/upload_2084510959955336547_1a8b1549-= 8bbb-402d-b5ad-92e330b94e1e.png]CIO Daniel Strickberger [https://gallery.freshmarketer.eu/9582de29-74a7-3ed0-a39c-6fee9c0620b3/file= s/0b64ee11-8542-4b75-88b6-62535e597f90/upload_4169633873434837412_0ad1368c-= 51ff-42eb-a064-13dfef943662.png] Bio: CIO Daniel Strickberger of DSM Capita= l Partners Best regards\met vriendelijke groet, Martijn van Vliet martijn@candoris.nl Candoris HNK, Oude Middenweg 19, 2491 AC, The Hague, The Netherlands www.candoris.nl "This email is intended to be reviewed by only the intended recipient and m= ay contain information that is privileged and/or confidential. If you are n= ot the intended recipient, you are hereby notified that any review, use, di= ssemination, disclosure or copying of this email and its attachments, if an= y, is strictly prohibited. If you have received this email in error, please= immediately notify the sender by return email and delete this email from y= our system." Please manage your e-mail settings here. Unsubscribe [https://fwtrack.candoris.nl/v1/opn/edP6Uy19RrOkXnLpwEWJRw] --_000_AM6PR02MB4263C770659452F2E7872E4EBE3C2AM6PR02MB4263eurp_ Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable
                     = ;   

Candoris weekly update provided by Martijn van Vliet:

As of May 4, 2026 for professional investors only
Macro Economy/ Markets  -  Strategies offered by Candoris  

Scroll down for the charts used and weekly summary<= /b>

Click here to play the update   * When pictures do not open in your outlook, click here to view them in PDF)    


-This week: 6 May at 15:00 CET, 20 min update on EMD: VanEck Emerging Markets Debt Fund Update


Let's start with an Earnings seas= on update

-Earnings are coming in far above already high expectations, driven by stro= ng margins and big tech outperformance
-This keeps market valuations in check: prices rise, but P/E ratios stay st= able because earnings grow just as fast
-Key nuance: revenue growth is solid but lags earnings, so the story is mar= gin-driven, which may not be sustainable long term

Look at S&P 500 Today vs 31 M= ar: 27.1% earnings growth!!!! Wow....


3D"03-sp500-earnings-growth-q1-202=



Revenue growth is solid, but less extreme

3D"04-sp500-revenue-growth-q1-2026=

source: Factset




As you can see, the market isn't cheap at all, but the dark blue line takes= off


And yes EPS growth is narrow, but it is expected to continue at elevated le= vels and the Median stock is expected to grow earnings at very decent level= s as well..

You see these charts quite a bit now and even though I used them myself as = well to paint a reason to diversify away from S&P 500 to for example US= Small Caps and EME 

I like to throw in one thing: What was the earnings growth at previous 20/2= 1 P/E levels? 


With 15-30% earnings growth, forward P/E drops from ~20 to a P/E of ~15 in = 2 years...

Perhaps better to also look at the PEG ratio 

*PEG Formula:  \(\text{Forward P/E} \div \text{Long-Term Earnings Growth} =3D \te= xt{PEG}\).


Semiconductors are leading the recent rise in the markets:


Economic growth might accelerate if semiconductor price rise is again the l= eading indicator it has been in the past

Or are Semiconductors simply up w= ay too much?


in fact it seems to be coming..

Despite the high oil prices, but the importance of oil is so much smaller t= han it used to



Source: THE BIRB NEST
@TheBirbNest
Chartles Henry Monchau



Hard to imagine, but the backlog is getting larger, more capex might be mor= e logical than less....


source: Steno Research 

Hyperscalers keep pushing up their investments, but is this sustainable?

Our EME manage= r Letko Brosseau is providing insight from the other side of the coin:<= /span>
  • April=92s MSCI EM performance is an outlier, largely driven by a handful= of top Information Technology stocks.
  • The rally in names like TSMC, SK Hynix, Delta Electronics= , and MediaTek is sentiment-driven, but there is caution due to p= otential data center overbuild.
  • The market assumes a sustained AI boom, but there are signs that infrast= ructure spending is outpacing real revenue generation.
  • OpenAI illustrates this gap, with revenue underperformance and very= large long-term data center lease commitments.
  • The AI supply chain may be over-earning based on demand that is booked b= ut not yet supported by end-user economics.
  • If funding conditions tighten or revenues disappoint, this could trigger= a correction in both orders and valuations.
  • Strategy remains focused on value, favoring businesses with clearer, sel= f-sustaining cash flows over those dependent on external financing cycles.<= /b>




    • Fact is:

    Who would have thought the US economy would rise 75% nominal in 7 years, cr= azy... 

    Yes inflation, but nominal rise is good for equities..



    over to the Markets:


    April saw the largest monthly rise in Nasdaq 100 in >2 decades





    source: Bloomberg/Zerohedge


    Not as extreme for the S&P, but pretty impressive rise..



    source: Bloomberg/Zerohedge

    Mag 7 is back big time...SOX is King..




    source: Bloomberg/Zerohedge


    So far YtD US Small is in the lea= d

    <= /span>






    Bank of Japan thinks ~160 is enough




    source: Bloomberg/Zerohedge


    Market Breadth is plunging again


    EME
  • EM equities traditionally offered diversification through different econ= omies, valuations, and sector exposure
  • Indices are now more concentrated and tech-driven, with TSMC, Samsung, a= nd SK Hynix making up ~21% of MSCI EM
  • This reduces both sector and geographic diversification and increases ex= posure to tech-related risks
  • Key question: do EM equities still provide real diversification?

    The index and many active managers do not provide diversification via EME a= nymore the way they used to

    We have one that does, see 2nd section of this update 




    Record low levels of jobless claims, in a labour market that is substantial= ly larger than in the 70-80-90ies...

    Is this a sign Friday's jobless numbers will be strong?



    source: Bloomberg/Zerohedge




    Where do we stand on oil..?


    Other

    Paying dividend is a thing of the past, earnings growth and stock buy backs= is what matters


    Other


    Other

    The World is a different place, EM Local Bond volatility nowadays need a wa= r in the Middle East, oil shock to get to the same volatility as DM Governm= ent Bonds 

    More in Wednesday's update:      6 May at 15:00 CET,  VanEck Emerging Markets Debt Fund Update





    Other

    April 2026, forest fires in The Netherlands with smoke that reaches the UK,= crazy... 

     Week ahead..

    Payrolls
                   
    &nb= sp;                              = ;     

         


    Upcoming trips with portfolio managers&n= bsp;                     =    

    Ke= vin Power, Portfolio Manager of the SiM High Yield Opportunities strategy, will be in Europe for a roads= how from 18 May to 22 May 2026

    18 = May     The Netherlands
    19 May     The Netherlands
    20 May     Finland
    21 May     Denmark
    22 May     Portugal

    Alex Letko of the Letko Brosseau Global Emerging Markets strategy, will be in Europe f= or a roadshow from 21 Sept to 25 Sept 2026

    21 Sept     TBD
    22 Sept  &= nbsp; TBD
    23 Sept  &= nbsp; TBD
    24 Sept  &= nbsp; TBD
    25 Sept &n= bsp;  TBD

    We = would be pleased to visit you, please email to candoris@candoris.nl  to indicate your interest. Upcoming Online Updates

    Click on the strategy name to subscribe or reply to this email.= The up     dates take 2= 0 minutes and are provided by the portfolio manager!

    Upcoming Online Meeting Week

    Week dedicated to one-to-one online meetings to go in-depth o= n the philosophy, process and portfolio.

    SiM High Yield Opportunities   with PM Kevin Power

    11-13 May: 16:00-17:00 CET
    26-28 May: 16:00-17:00 CET  

     

                  
    Summary strategies offered by Can= doris:

                         = ;                    
    F= ixed Income:

    Strategic income Management US High Yield Opportunities: = ;
    The SiM US HY strategy is a high conviction, high alpha generating strategy= . The unique, pragmatic and counter-cyclical approach to investing in US HY= has lead to superior returns with less risk (down-market capture 89.5%). S= iM manages USD 2.8 billion in US HY only and a daily liquid Art. 8 UCITS fund is available with an AUM of U= SD 366 million: ISIN Code:&n= bsp;IE00BF1XKP70<= /b>

    As per Q1, 2026 the Strategic income Management (SiM) US High Yield strateg= y has an annualized outperformance of 2.31% over the BofAML US High Yield ind= ex, outperforming all of peers according to eVestment since inception in 2011. SiM als= o achieved a clean sweep at the Lipper Awards, winning Best Global High Yield Manager over 3, 5 and = 10 years. A core portfolio around long term secular trends is complemented = with out of favour sector and small cap issuer allocations. The team succes= sfully employed the same investment strategy for more than 20 years. SiM is employee owned and employees inves= t their own private wealth alongside you as an investor.

          



        source: FT




    Data till 3= 1-03-2026:















              &= nbsp;  
    Asset Class & Strategy Summary
    Presentation
    Peer comparison
    Factsheet
    Standard RfP
    = Morningstar
    Why US HY Presentation
    Sustai= nability Related Disclosures
    Replay Latest Online Update
    SiM and its investment process explained in 12 min                     
      CIO and High Yield Portfolio manager Gary Pokrzywinski
                 
    Bio: Gary Pokrzywinski of Strategic investment Management      



                             
              &= nbsp;            
    =   =                      = ;                     &nb= sp;                &= nbsp;                    =        
                         = ;  
      &nb= sp;            
    VanEck Emerging Market Debt:
    The VanEck Emerging Markets Bond strategy is one of the few truly flexible = EMD blend managers using the distinct risk and return characteristics of ea= ch of the three EMD sub universes (HC, LC, Corporates). A daily liquid Art.= 8 UCITS fund is available with an AUM of USD 180.7 million: ISIN code: IE00BYXQSF37 

    As per Q1, 2026 the VanEck Emerging Markets Debt strategy has an annuali= zed outperformance of 1.91% over the 50% JPM EMBI & 50% JPM GB= I-EM benchmark, outperforming 74% of peers according to eVestment since inc= eption in 2012. The UCITS fund won the Lipper Award for best EMD fund Europe over the last 3 and 5 yea= rs. A flexible approach is key to optimising portfolio risk/return using th= e distinct characteristics of each of the emerging markets debt sub-univers= es.

     = ;         source: FT


    Marsham = Euro Transitional Issuers Fixed Income

    Marsham is a founder-led investment = firm focused on fixed income, with a clear edge: transitional bonds. These = are bonds from companies actively moving toward lower-carbon, more sustainable business models. This theme is central to t= he strategy and supports Marsham=92s strong bottom-up performance. The= SFDR article 8 strategy targets issuers with credible plans to decarbonise= or improve operations, not just those with green labels. Transitional bonds are often undervalued and missed by = standard ESG filters, offering both impact and return potential.


    The Marsham Euro Transitional Issuers Fixed Income Strategy invests in list= ed corporate bonds, primarily in euros, across both high yield and investme= nt grade.

    ISIN code: IE00BMPS1X28:EUR


    All 3 funds (E= uro, GBP and USD) will be made available in daily liquid art.9 UCITS f= unds with size!

    Presentation

    Factsheet

    Standard DDQ

    Awards


    Lead portfolio Manager




    Equities= :


    Letko Brosseau Emerging Markets Equity
    Letko Brosseau is known for its long-term, value-oriented investment approa= ch. They focus on identifying companies with strong fundamentals that are t= rading at attractive valuations relative to their intrinsic worth. The emer= ging market equity strategy involves rigorous in-house bottom-up research and analysis of individual companies = supplemented with top-down analysis. A daily liquid Art. 8 UCITS fund with = an AUM of USD 115 million is available. ISIN code: IE000LCBW880        

    As per Q1, 2026 the Letko Brosseau Emerging Markets Equity Strategy has an = annualised outperformance of 3.72% over the MSCI Emerging Marke= ts index, outperforming all peers according to eVestment since inception in 2011. Letko= Brosseau is an independent investment firm with a highly experienced inves= tment team.


    - Click here      for the Q1 attribution and commentary.
    - Click here <= span style=3D"color: rgb(31, 78, 121); text-transform: none;"> = for Impact on the Emerging Markets Fund from Middle East Conflict
    - Click here  for a detailed peer comparison=  of the strategy vs benchmark and peers. 
    - Click here     for EME place to be? 

    And the= last but not least, the 5y attribution report, that shows that all of the = >9% annualised outperformance comes from stock selection!
    - Click here   = for the attribution report

     
      source: FT



    Why Letko underperformed:

    The ben= chmark over the last 30 days has seen exuberance in a few tech names =96 TS= MC is of course one (+21%), but SK Hynix (+50%), Delta Electronics (+48%) and MediaTek (+75%) are all within the top 10 of = the index and have also seen a steep increase. See below screenshot of top = 10 index names and their last month performance. You=92ll see some of the n= ames we hold like Reliance, Alibaba and HDFC Bank had flatter performance relative to these tech names. The Fu= nd does hold Samsung, but at a 3.4% weight compared to the benchmark at 6% = weight. The Industrials sector also had a strong month, but proportionally = represents a much smaller slice of the index compared to Info Tech.

    3D"Image" 




    The return in the MSCI EM index this April is indeed a historic outlier, an= d the concentration in the top 10 Info Tech names is the primary engine. Wh= ile names like TSMC, SK Hynix, Delta Electronics, and MediaTek have benefit= ed from a surge in sentiment, our decision to remain underweight or avoid these names is driven by a fundame= ntal concern that goes beyond simple valuation: the risk of a massive data = center overbuild.
     
    While the market is pricing in a perpetual "AI gold rush," we are= seeing increasing evidence of a disconnect between infrastructure spending= and actual revenue generation. A key case in point is OpenAI. Despite the = massive hype, OpenAI has recently struggled to meet its internal revenue targets. This is particularly concerning give= n the scale of their liabilities; the company has committed to approximatel= y $1.3 trillion in lease payments to data center operators over the coming = years.
     
    The current buildout among these semiconductor and hardware providers is pr= edicated on the assumption that OpenAI and similar labs will have the liqui= dity to fulfill these massive obligations. However, with current revenues f= alling significantly short of these targets, OpenAI is becoming increasingly dependent on capital market finan= cing rather than self-sustaining cash flow to fund its operations and lease= commitments.
     
    Our primary thesis for remaining cautious on these high-flying tech names i= s that we believe the supply chain=97from the chipmakers (TSMC, SK Hynix) t= o the power management providers (Delta Electronics)=97is currently over-ea= rning based on "booked-but-not-billing" demand that may not be supported by the end-users' underlying economics. I= f the capital markets tighten or if the revenue gap at the model-provider l= evel doesn't close rapidly, we expect a significant correction in both the = order books and the valuations of these companies.
    We remain disciplined in our value-oriented approach, favoring sectors wher= e the cash flows are more transparent and less reliant on speculative finan= cing cycles.




  • EM equities traditionally offered diversification through different econ= omies, valuations, and sector exposure
  • Indices are now more concentrated and tech-driven, with TSMC, Samsung, a= nd SK Hynix making up ~21% of MSCI EM
  • This reduces both sector and geographic diversification and increases ex= posure to tech-related risks
  • Key question: do EM equities still provide real diversification?
    <= span style=3D"font-family: "Times New Roman", Times, serif; font-= size: 14px; color: rgb(31, 78, 121);">

    The index and many active managers do not provide diversification via EME a= nymore the way they used to

    We have one that does, see 2nd section of this update 








    Data till 3= 1-03-2026:




     = ;      


       
    As= set Class & Strategy Summary     &nbs= p; 
    Presentation             
    Peer comparison
    F= actsheet
    Standard RfP
    ESG Integration
    ESG Highlights Report
    Attribution Report and Commentary
    Replay Online Webinar                   
                  &= nbsp;      

    Lead Portfolio Manager Rohit Khuller
     = ;        
    Bio Rohit Khuller of Letko Brosseau                                
              &= nbsp;          
              &nb= sp;                     &= nbsp;                      &nb= sp;                     &= nbsp;            

    Chart 1) US= Small Caps versus Nasdaq, S&P 500, Dow 30 - August 1, 2025- April 20,2= 026



                         = ;  
                &nb= sp;  
    N= ext Century Growth US Small Cap Growth Equities 
    The Next Century Growth (NCG) US Small Cap Growth Strategy is a high convic= tion, high alpha generating strategy that seeks to invest in the fastest gr= owing and highest quality small cap companies in America. A daily liquid Ar= t. 8 UCITS fund with an AUM of USD 55 million is available. ISIN code: IE0= 00TY23GV5

    As per Q1, 2026 the Next Century Growth US Small Cap Growth Equity Strategy= has an annualised outperformance of 4.64% over the Russell 2000 Growth= index, outperforming 91% of peers according to eVestment since inception i= n 1999. Next Century Growth is an independent investment firm with a highly= experienced investment team located in Minneapolis.

                source: FT



    Data till 3= 1-03-2026:











    Asset Class & Strategy Summary
    Presentation
    Peer comparison
    Factsheet
    Standard RfP
    Morningstar
    ESG Policy
    Sustainability Related Disclosures
    Replay Latest Online Update                     

    Chairma= n, CEO, Portfolio Manager and Partner Thomas Press
                 
    Bio: Thomas Press of Next Century Growth Investors                                

              &nb= sp;                     &= nbsp;                      &nb= sp;                     &= nbsp;            
                         = ;  
                &nb= sp;  
    Orchard US Small Cap Value Equities 
    The Orchard US Small Cap Value strategy is a high conviction, high alpha ge= nerating strategy that identifies companies that trade at a significant dis= count to where they should trade at and have one or multiple ca= talyst to unleash this intrinsic value. A daily liquid Art. 8 UCITS fund with an AUM of USD 56 million is availabl= e. ISIN code: IE00BL0L0092

    As per Q1, 2026 the Orchard US Small Cap Value Equity strategy has an an= nualized outperformance of 2.17% over the Russell 2000 Value index= , outperforming 65% of peers according to eVestment since inception in 2001= . Orchard Capital Management is a research-driven value investment manager solely focused on small cap value investing. As a= n independent employee owned boutique based in Chicago they deliver superio= r returns through proprietary research and a disciplined process. Long term= US small cap value is the best performing segment of US Equities.

                

    source: FT



    Data till 3= 1-03-2026:



              &= nbsp;  
    Asset Class & Strategy Summary                
    Presentation
    Peer comparison
    Factsheet
    Standard RfP
    Morningstar
    Orchard's approach to ESG
    Sustainability Related Disclosures
    Replay Latest Online Update                     
     
    Founder and CIO Blake Harper
     = ;             Bio: Blake Harper of Orchard Capital Management
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    DSM Growth Equity:
    The DSM Growth strategies are high conviction strategies that invest in com= panies that have high earnings growth. A strict valuation discipline differ= entiates DSM from other growth managers. DSM capital manages USD 6.4 Billio= n in Equity strategies. DSM is an employee owned firm and employees invest their own private wealth alongsid= e you as an investor.


    -DSM had this chart below very co= rrect: The fact that these companies had become in-expensive compared to th= eir earnings...

    -Last week's online update was spot on related to earnings expectations, re= ply to this email for the replay


    3D"Image"

    DSM Global Growth
    As per Q1, 2026 the Global Growth Equity strategy of DSM has an annualiz= ed outperformance of 1.03% over the MSCI ACWI Growth, outperformin= g 90% of peers according to eVestment since inception in 2010. A daily liqu= id Art. 8 UCITS fund is available with an AUM of USD 142.9  million. ISIN code: LU= 1016061043


    YtD +1.7% o= utperformance over the MSCI ACWI Growth BM




    Asset Class & Strategy Summary
    Presentation
    Peer comparison
    Factsheet
    Standard RfP
    Morningstar
    Stewardship Report
    Sustainability Related Disclosures
    Replay Latest Online Update
    Artificial Intelligence (AI)


    D= SM US Large Cap Growth
    As per Q1, 2026 the US Large Cap Growth Equity strategy of DSM has an an= nualized outperformance of 0.73% over the Russell 1000 Growth, out= performing 86% of peers according to eVestment since inception in 2002. A d= aily liquid Art. 8 UCITS fund is available with an AUM of USD 60.2 million. ISIN code:&n= bsp;LU1440728472



    YTD +1.6% o= utperformance over the R1000G BM


              &= nbsp;    
    Asset Class & Strategy Summary
    = Presentation
    Peer comparison
    Factsheet Stan= dard RfP
    Morningstar
    Stewardship Report
    Sustainability Related Disclosures
    Replay Latest Online Update
    Artificial Intelligence (AI)                 &= nbsp;  

    CIO Daniel Strickberger
    Bio: CIO Daniel Strickberger of DSM Capital Partners                                
              &= nbsp;      


                       = ;                     &nb= sp;      
              &n= bsp;
                         = ;                      &nbs= p;         
    Best regards\met vriendelijke groet,=

    Martijn van Vliet
    martijn@candoris.nl

    Candoris
    HNK, Oude Middenweg 19, 2491 AC,
    The Hague,
    The Netherlands
    www.candoris.nl

                       = ;      
    &n= bsp;

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