FFM Fund Newsletter - Aug 2025

August 2025

Dear Friends, Dear Investors,

In the middle of the summer, nothing much happens, and this was true in the markets as well in 2025. For the first time this year, no major announcements came out of the White House. That said, verbal agreements were made with key trading partners, such as the EU and Japan. Still, it remains unclear how the U.S. plans to enforce some of the promises made, particularly those related to investment commitments in the U.S.

Furthermore, for no particular reason, Switzerland was hit with a 39% tariff, much higher than any other developed country in the world, while China saw an extension of the tariff truce for another three months. Tariffs, we suspect, are the story of the first half of the year and the markets will go on to worry about other things at some point.

For now, markets, particularly in the United States, appear a bit “frothy.” Prices are rising rapidly in certain speculative names, without necessarily having solid fundamentals to justify them. Not necessarily in the stocks we hold, but rather in far more speculative names, such as flying car manufacturers with no sales, valued at more than 10 billion dollars.

This phenomenon only strengthens our discipline: to remain focused on solid, profitable, and well-valued companies, rather than succumbing to speculative fads. Nevertheless, we monitor these excesses, as they can precede broader market corrections. In this context, and knowing that August and September are historically more difficult months for markets, a period of digesting recent gains would seem both healthy and welcome.

Best regards,

Your CaridaB Group Team