BMC Global Select May 2025

May was a great month during which the fund saw a healthy increase in value. The stocks that contributed the most to returns during the month were Microsoft, Nvidia, and Everus Construction, while the weakest contributors were Apple, Watsco, and 3i. Nvidia and Everus Construction both issued solid reports; in fact, the report from Everus was superb, with the order book, revenues, and profits seeing stellar growth on an annual basis and the company proving the skeptics wrong. It was clear from the Everus Construction report, as well as those of similar companies, that the US installation industry is running at full speed, with continued strong momentum from the construction of datacenters. This effect was also visible in Nvidia's great report, bolstering the view that AI is not overhyped, and might even be underhyped. Regardless of the strength of the trend, there is no doubt that AI is happening, and it is exciting to see the share price rises for our companies exposed to this profit trend. At the other end of the scale, Watsco (a Beijer Ref-like US company) stands out, having issued a weak quarterly report. The company has a fantastic track record over several decades, and we view this setback with equanimity, counting on better reports ahead. 

Key market events and trends

Just like in April, tariff plays and the ongoing reporting season were the focus of the news flow in May. Since April 2—the so-called Liberation Day—uncertainty regarding tariff levels and the consequent effects has been rife, but in May, the market fixed on phrases like "tariff deferral" and "tariff relief," while many companies reported solid Q1 numbers and issued conciliatory messages about the direct effect of tariffs. We expect the stock markets to remain sluggish in the coming month as the indirect effects of tariffs begin to be felt, but we also believe that "tariff alarm" peaked in April. It is clear the US needs to leave this turbulence in the rear-view mirror as speedily as possible to avoid it further damaging its own economy. Our belief is that we will see substantial interest rate cuts in the US as soon as the tariff plays end.

Portfolio changes

We made no changes to our portfolio during May.

The fund's positioning—our market expectations

As active portfolio managers with a global mandate and a concentrated portfolio, we have the advantage of being able to act fast to adapt to new situations. We have limited exposure to companies directly affected by tariffs and are optimistic about the future for our companies. Towards the fall, we anticipate similar interest rate cuts in the US to those in Europe, which, together with the sizable investments in both economies, should allow both their companies and stock exchanges to perform well. We are also exposed to the robust growth in India, somewhere we are keen to increase our exposure to in the coming months.

*MSCI All Country World NTR $ in EUR