Francisco Jose Ortiz @FranciscoOrtiz13: "𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗨𝗽𝗱𝗮𝘁𝗲 May was a..."

Georgia

𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗨𝗽𝗱𝗮𝘁𝗲 May was a relatively quiet month for the portfolio, but not an easy one. While the S&P 500 continued climbing, driven once again by enthusiasm around artificial intelligence, our globally diversified strategy became a short-term headwind. Latin America and China had a weak month, offsetting much of the strength seen in U.S. large-cap technology. This is exactly what diversification looks like in real life. Sometimes it helps performance. Sometimes it hurts it. The objective is not to outperform every single month, but to build a portfolio capable of compounding over decades without depending on one country, one sector, or one single narrative. That philosophy continued guiding every decision we made throughout May. Rather than chasing momentum, I focused on improving the overall quality of the portfolio. Several legacy positions that no longer matched my long-term investment philosophy were reduced or fully exited, including $DIS (Walt Disney), $CRM (Salesforce Inc), $ADBE (Adobe Systems Inc), $SHOP (Shopify Inc.) and part of $BABA (Alibaba-ADR). The capital was gradually reallocated toward businesses where my conviction is significantly higher. On the buying side, I continued increasing exposure to companies that combine exceptional quality, durable competitive advantages, and attractive long-term return potential. Recent additions included larger allocations to $SPGI (S&P Global Inc), $MA (Mastercard), $META (Meta Platforms Inc) and $NU (Nu Holdings Ltd.), while also increasing exposure to selected emerging market leaders. I also recently opened new positions in $V (Visa) and $KSPI (Kaspi.kz) and took partial profits in $ASML (ASML Holding NV) after an extraordinary gain of more than 139% in less than a year. Likewise, I realized part of a nearly 49% gain in $BIDU (Baidu, Inc.-ADR) after a strong recovery. The objective behind all these moves is simple: own fewer businesses, but own better businesses. Investing is not a monthly competition. Our investment horizon is measured in years and decades, which means one month says very little about the quality of an investment process. What matters much more is discipline, valuation, and capital allocation than trying to capture every short-term rally. Looking ahead, uncertainty remains elevated. Geopolitical tensions, interest rate expectations, and the ongoing debate around AI monetization continue generating volatility across markets. Ironically, these are often the environments where the best long-term opportunities begin to emerge. History shows that investing usually feels most uncomfortable precisely when future expected returns improve. That is why portfolio simplification will remain one of my main priorities during the rest of the year. Rather than spreading capital across dozens of positions with little impact on overall returns, I prefer concentrating it where conviction is highest. The portfolio I expect to own five years from now will probably contain fewer companies than today, but each one should represent a higher level of quality, durability, and conviction. Investing is not about collecting stocks. It is about owning exceptional businesses, buying them at reasonable prices, and giving them enough time to compound. The main reason behind our relatively flat performance in May was geographic allocation rather than stock selection. Today, markets remain heavily concentrated around a handful of U.S. mega-cap technology companies. They are outstanding businesses, and many remain core holdings in my portfolio. However, I continue to believe that relying too heavily on a single country or investment narrative creates unnecessary concentration risk. Maintaining meaningful exposure to Latin America, China, and other emerging markets may hurt relative performance during periods like this, but I believe it improves the resilience of the portfolio and increases long-term optionality. Leadership changes. Valuations change. Sentiment changes. Our investment process should not. That process remains exactly the same: continue investing, continue improving portfolio quality, and continue allocating capital toward exceptional businesses whenever the market offers attractive prices. Thank you to everyone who continues to trust me with your capital. Bull markets create followers. More challenging periods create long-term partnerships. The fact that many of you continue adding funds and staying invested despite temporary underperformance tells me that you are not following monthly returns; you are following a long-term process. That trust means a lot to me because I invest right alongside every copier. Markets will keep changing. Headlines will keep changing. Narratives will keep changing. Our process will not.

Not investment advice. The author may have financial interests in the mentioned instruments.