Cooper Investors, an investment management firm, released its fourth-quarter 2025 investor letter for “Cooper Investors Global Equities Fund (Unhedged)”. A copy of the letter can be downloaded here. The portfolio returned -3.3% in Q4 2025, bringing the yearly returns to 2.6%. Currency fluctuations of approximately 5% weighed on the yearly performance. The portfolio returned 14.2% on an annualized basis over the past three years, compared to the MSCI AC World Index’s annualized return of 21.3% for the same period. The firm focuses on a long-term horizon to provide a risk-adjusted return above the market. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Cooper Investors Global Equities Fund highlighted stocks such as Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading manufacturer of integrated circuits and other semiconductor devices. On February 10, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $361.91 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 10.64%, and its shares are up 75.36% over the past twelve months. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $1.877 trillion.
Cooper Investors Global Equities Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its fourth quarter 2025 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest semiconductor foundry. The Fund has been invested in TSMC since May 2020. Over this period, the company has cemented its position as the leading manufacturer of advanced chips and delivered Earnings per Share growth of close to 30% per annum. Investment returns have been over 36% on an annualised basis. More recent growth has been fuelled by the demand for chips used in High Performance Computing applications, or AI.
History shows that the long-term winners from significant technology shifts such as AI are difficult to predict. Our approach instead is to observe the industry trends and invest where we perceive the most attractive risk-adjusted returns. In this case, semiconductor proliferation (across AI and other markets) as well as the increasing complexities in the semiconductor manufacturing processes place TSMC in an increasingly important position. Put simply, TSMC have a near monopoly position in the manufacture of leading-edge chips and so will thrive for as long as the semiconductor industry continues to push the performance envelope. This is a bet we are willing to make. We expect TSMC’s earnings growth to remain in the low-20% p.a. range; an outcome which is not captured in the current share price.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 9th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 194 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the third quarter, up from 187 in the previous quarter. While we acknowledge the risk and potential of TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED (NYSE:TSM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED (NYSE:TSM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared a list of best extremely profitable stocks to invest in according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
