Navigating Narrow Markets: Finding Value Beyond the Hype

The Northstar Global Flexible Fund Q3 Commentary: After a volatile start to 2025, the third quarter delivered strong global equity returns, but driven by a narrow set of growth-oriented stocks tied to the AI trade. For quality value managers like Northstar, this environment required discipline and flexibility. In the first half, we selectively increased equity exposure and added growth names. As valuations stretched, we trimmed back, remaining underweight big tech and overweight high-quality healthcare, where long-term fundamentals remain compelling. Looking ahead, the narrowing discount on our buy list suggests more subdued returns at an index level, but our focus remains on owning durable businesses at sensible prices, which is the cornerstone of sustainable compounding.