Evenlode Investment | February Newsletter

February 2026

Welcome to the Evenlode newsletter!

Each month we aim to deliver a curated digest of our latest insights, updates, and reflections on the work happening at Evenlode Investment. Our mission remains steadfast: delivering sustainable, long-term returns while prioritising quality, resilience, and the thoughtful stewardship of your capital.

Market Round-up

January saw markets refocus on company earnings. Despite a softening macroeconomic backdrop, many companies continued to demonstrate resilient revenues, strong margins, and robust cash generation. Meanwhile, enterprise software companies came under particular scrutiny as speculation over the potential threat from AI increased.

We believe those companies with durable competitive advantages, pricing power, and recurring revenue streams proved well positioned to navigate cost pressures and fluctuating demand. By contrast, companies lacking balance sheet strength, or clear differentiation, face greater challenges in the months ahead.

We continue to see attractive opportunities where short-term concerns have created valuation anomalies in high-quality franchises. These businesses typically combine strong intellectual property, disciplined capital allocation, and the ability to grow earnings sustainably across the cycle.

In our view, the outlook for out-of-favour quality companies currently remains compelling. Investors who focus on long-term earnings strength, rather than near-term volatility, will be well placed to generate attractive returns over time.

Investment Views

Chris E and James analyse the NAV of Evenlode Global Opportunities' holdings, outlining why they continue to see an attractive entry point investment. They also touch on the widespread recognition that AI is very unlikely to revolutionise the worlds of enterprise data and software, and how, despite the K-shaped economy is weighing on almost all companies, margins are gently expanding while reinvestment in areas of competitive advantage continues to expand.

Meanwhile on the Evenlode Global Dividend side, Ben P and Rob Hannaford discuss the long-term opportunity in largely ignored areas of the market. These niches of compelling valuation have become increasingly attractively valued, despite exhibiting strong fundamental qualities. They also explain how the portfolio has attractive evolving microeconomics in the form of high returns on capital and margins, both in absolute terms and relative to the market.

Evenlode Global Opportunities

2025 Round-up

Read more

Evenlode Global Dividend

Review of 2025

Read more

To access materials relating to the UK funds you will need to select ‘Investor based in the United Kingdom’ on the Evenlode website.

Issued by Evenlode Investment Management Limited (Evenlode). Evenlode is authorised and regulated by the Financial Conduct Authority, No. 767844.

Whilst the funds Evenlode acts as investment manager for are available to retail investors via third party providers, please note that Evenlode do not have permissions from the FCA to deal directly with retail clients and the information provided in this newsletter and on the Evenlode website is for information purposes only. If you are not an investment professional you may still wish to visit the Evenlode website to find out information about Evenlode and the funds we manage but we recommend that if you wish to obtain advice regarding the suitability of the Evenlode ICAV for you, you should contact a financial adviser. Applications to invest in any fund referred to on the Evenlode website can only be made through a third party and must only be made on the basis of the offering documents relating to the specific investment.

This newsletter is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The sale of shares of the fund may be restricted in certain jurisdictions. In particular shares may not be offered or sold, directly or indirectly in the United States or to U.S. Persons, as is more fully described in the Funds Prospectus.

Please note, any views represent the opinions of the Evenlode Team as at the time of writing and do not constitute investment advice. Where opinions are expressed they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. This newsletter is not intended as a recommendation to invest in any particular asset class, security or strategy. The information provided is for illustrative purposes only and should not be relied upon as a recommendation to buy or sell securities. Current forecasts provided for transparency purposes, are subject to change and are not guaranteed. Every effort is taken to ensure the accuracy of the data used in this document but no warranties are given.

For full information on the Evenlode ICAV, including fund risks and costs and charges, please refer to the Key Information Documents, Annual & Interim Reports and the Prospectus, which are available on the Evenlode website. Recent performance information is shown on factsheets, also available on the website. Past performance is not a guide to future returns. Fund performance figures are shown inclusive of reinvested income and net of the ongoing charges and portfolio transaction costs unless otherwise stated. The figures do not reflect any entry charge paid by individual investors.

The Evenlode ICAV sub-funds are subject to normal stock market fluctuations and other risks inherent in such investments. The value of your investment and the income derived from it can go down as well as up, and you may not get back the money you invested, you should therefore regard your investment as long term. As focused portfolios of between 30 and 50 investments, the Evenlode ICAV sub-funds carry more risk than funds spread over a larger number of stocks. The Evenlode ICAV sub-funds have the ability to invest in derivatives for the purposes of EPM, which may restrict gains in a rising market. Investments in overseas equities may be affected by changes in exchange rates, which could cause the value of your investment to increase or diminish.