Magellan Investment Partners, an Australian investment management company, released its second-quarter 2026 investor letter for "Magellan Global Opportunities Fund". A copy of the letter can be downloaded here. The Fund invests in companies with sustainable competitive advantages that generate returns exceeding their cost of capital over time. In Q2, the global stock market rose 13.8%, reversing the stagflation narrative, with energy prices declining after US–Iran tensions eased. Focus shifted to chip stocks and data centre beneficiaries. Regionally, markets' performance reflected the tech rebound and energy decline. Macro backdrop improved in the quarter with relief from avoiding a severe energy shock, though growth and inflation concerns kept central banks cautious. The portfolio gained 4.3% in the quarter, lagging the 12.5% benchmark rise, driven by bubble-like conditions in semiconductors and data centre supply chains. For insights into their key selections for 2026, please review the Strategy's top five holdings.
In its Q2 2026 investor letter, Magellan Global Opportunities Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a top contributor to performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world's leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. On July 15, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $419.48 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -9.23%, and its shares gained 70.80% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.18 trillion.
Magellan Global Opportunities Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2026 investor update:
"The largest contributors to the portfolio's performance over the quarter were Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), UnitedHealth Group and Adidas. TSMC is a beneficiary of both AI chip investment and the data centre expansion cycle. In response to strong AI chip demand, TSMC raised its 5-year revenue growth CAGR by 5 points to 25% pa. While the growth will be supported by a large step up in FY26 capex (benefiting semi cap vendors like ASML), TSMC also raised its long-term gross margin guidance, signalling confidence in its ability to drive productivity, cost efficiencies and pricing power."
In its Q2 2026 investor letter, Magellan Global Opportunities Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a top contributor to performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world's leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. On July 15, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $419.48 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -9.23%, and its shares gained 70.80% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.18 trillion.
Magellan Global Opportunities Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2026 investor update:
"The largest contributors to the portfolio's performance over the quarter were Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), UnitedHealth Group and Adidas. TSMC is a beneficiary of both AI chip investment and the data centre expansion cycle. In response to strong AI chip demand, TSMC raised its 5-year revenue growth CAGR by 5 points to 25% pa. While the growth will be supported by a large step up in FY26 capex (benefiting semi cap vendors like ASML), TSMC also raised its long-term gross margin guidance, signalling confidence in its ability to drive productivity, cost efficiencies and pricing power."
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