Kathmandu Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 17.22% gross of fees and 16.64% net of fees compared to 10.56% for the Standard & Poor’s 500 Total Return Index and 11.52% for the MSCI ACWI Total Return benchmark. The portfolio experienced a ~30% swing over the past quarter, due to heightened market volatility stemming from tariff worries. Despite these worries, the portfolio delivered positive results driven by capital flows seeking opportunities outside the U.S. and a rebound in domestic equities as tariff worries began to ease. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Kathmandu Capital highlighted stocks such as ACM Research, Inc. (NASDAQ:ACMR). ACM Research, Inc. (NASDAQ:ACMR) is a leading manufacturer of packaging tools for wafer assembly and packaging customers. The one-month return of ACM Research, Inc. (NASDAQ:ACMR) was 15.95%, and its shares gained 26.68% of their value over the last 52 weeks. On August 12, 2025, ACM Research, Inc. (NASDAQ:ACMR) stock closed at $24.93 per share, with a market capitalization of $1.6 billion.
Kathmandu Capital stated the following regarding ACM Research, Inc. (NASDAQ:ACMR) in its second quarter 2025 investor letter:
“This quarter, we have initiated a new position in ACM Research, Inc. (NASDAQ:ACMR), the leading Chinese Semi-Cap Wafer Cleaning Equipment Manufacturer. ACMR stands to benefit from China’s semiconductor supply chain localization amid growing trade and geopolitical tensions with the United States. Recent trade restrictions on the exports of both semiconductors and semiconductor capital equipment to China have accelerated their efforts to achieve full self-sufficiency – China is the world’s largest consumer of Semiconductors, amounting to 35% of global consumption, but only produces 7% domestically.
