Munro Partners, an investment management firm, has published its fourth-quarter 2025 investor letter for the Munro Global Growth Fund. The document, available for download, details the fund's performance during the December quarter, which saw a return of -0.7%. Long positions contributed positively to results, while short positions, hedging, and currency impacts had a negative effect.
Global equity markets performed solidly in 2025, with U.S. markets posting strong gains in the quarter. The S&P 500 rose 2.4%, and the Nasdaq increased 2.3%. Europe and Japan were among the regions that contributed to the stronger performance.
In the letter, the fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a stock of note. Taiwan Semiconductor Manufacturing Company manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. The stock's one-month return was 14.90%, and it gained 52.29% over the past 52 weeks. On January 14, 2026, the stock closed at $327.11 per share, giving it a market capitalization of $1.4 trillion.
Regarding Taiwan Semiconductor Manufacturing Company, the fund stated: "Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (Connectivity) was another key contributor, continuing to benefit from the demand for compute. Importantly, TSMC plays a critical role in chip manufacturing regardless of whether a hyperscaler adopts Nvidia product, or whether they employ a custom solution like Alphabet."
Taiwan Semiconductor Manufacturing Company ranks 9th on a list of 30 Most Popular Stocks Among Hedge Funds. According to database records, 194 hedge fund portfolios held the stock at the end of the third quarter, up from 187 in the previous quarter. In the third quarter of 2025, the company's revenue increased 6% sequentially in NT.
While the potential of Taiwan Semiconductor Manufacturing Company as an investment is acknowledged, the letter suggests that certain AI stocks may offer greater upside potential with less downside risk. The fund's top five holdings for 2025 are detailed separately.