The strategy of Asilo Argo is focused on identifying individual companies that have the potential for exceptionally strong and long-lasting growth — so-called “superstar companies”. Although we follow macroeconomic developments, we do not make investment decisions directly on the basis of these phenomena; instead, we concentrate on long-term analysis. We are, however, currently living through rare times.
The portfolio managers’ Q1 / 2025 quarterly letter discusses the current economic and geopolitical inflection point as well as the rapid development of artificial intelligence from an investment perspective. Although our long-term focus remains on disruptive growth and superstar companies, we acknowledge that Donald Trump’s recent tariff policy and the related uncertainty are affecting the investment environment.
The portfolio companies that produce digital services are less exposed to the usual fluctuations in production costs. In this letter we emphasise Jevons’ Paradox and the significance of Moore’s Law: as the cost of compute power falls, usage grows, which supports the long-term demand for AI infrastructure. New scaling laws born in the field of AI and the Model Context Protocol (MCP) are pushing development forward in leaps. The portfolio managers of Asilo Argo believe that AI will change the market ever faster, which reinforces the core of the investment strategy: a focus on fundamental technological transitions, not on momentary waves.
We do indeed notice quite well how the surface of the Atlantic is storming, but the core of our work is not to watch the waves visible on the surface, but to observe — beneath the surface — the Gulf Stream that flows regardless of the direction of the wind. We ask: are the central drivers still in force, and are our portfolio companies still in the middle of the Gulf Stream?
Ernst Grönblom, Henri Blomster. Asilo Asset Management Oy