Factors Led Mar Vista’s U.S. Quality Strategy’s New Addition: Taiwan Semiconductor (TSM)

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US equities experienced a strong momentum in 2025 and marked their second consecutive year of double-digit gains. The market witnessed one of the fastest recoveries following its dip into bear territory in April. Market leadership continued to narrow as Mega-cap stocks and AI-driven companies dominated the landscape. Against this backdrop, The Mar Vista’s U.S. Quality strategy reported +0.20% net-of-fees gains in Q4 2025 vs. the Russell 1000® Index’s +2.41% return and the S&P 500® Index’s +2.65% return. Stock selection in the communication services, consumer discretionary, and financials sectors was favorable to its performance, while stock selection in information technology, materials, and healthcare detracted from its performance. The letter also shared that, in 2026, markets will need to strike a balance between strong fundamentals and increasing economic uncertainties. In addition, please check the fund’s top five holdings to know its best picks in 2025.In its fourth-quarter 2025 investor letter, Mar Vista U.S. Quality Strategy highlighted stocks such as Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. The one-month return for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 19.59%, and its shares gained 60.16% over the last 52 weeks. On January 13, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $331.21 per share, with a market capitalization of $1.72 trillion.Mar Vista U.S. Quality Strategy 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 dominant manufacturer of semiconductors for the world’s leading fabless chip designers including NVIDIA, Apple, Broadcom, and others. TSM is the world’s preeminent semiconductor foundry due to its leadership position in producing the most advanced chips that power the world’s most sophisticated supercomputers, personal computers, and mobile devices. It is also one of only two manufacturers that operates at the leading edge of semiconductor process technology. This technological leadership, reinforced by scale economies, proprietary process know-how, and decades of accumulated manufacturing expertise, creates a formidable competitive moat that is increasingly difficult for other foundries to replicate. As a result, TSM earns structurally higher gross margins than its peers through a combination of technology-driven pricing power and superior manufacturing efficiency.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,944.47 +17.87 (+0.26%)Dow 3049,442.44 +292.81 (+0.60%)Nasdaq23,530.02 +58.27 (+0.25%)Russell 20002,677.01 +25.38 (+0.96%)VIX15.92 -0.83 (-4.96%)Gold4,609.50 -26.20 (-0.57%)Trending tickersTSM Taiwan Semiconductor Manufacturing Company Limited 341.76 +14.65 (+4.48%)RDDT Reddit, Inc. 228.67 -23.71 (-9.39%)SPHL Springview Holdings Ltd 17.41 +15.11 (+656.96%)GS The Goldman Sachs Group, Inc. 975.88 +43.21 (+4.63%)ASTS AST SpaceMobile, Inc. 101.25 +6.03 (+6.33%)PortfolioSign in to access your portfolioSign inTop gainersFIGR Figure Technology Solutions, Inc. 64.92 +9.10 (+16.29%)ERAS Erasca, Inc. 9.56 +1.25 (+15.04%)GLXY Galaxy Digital 31.99 +3.80 (+13.48%)FLNC Fluence Energy, Inc. 25.50 +2.85 (+12.58%)PEN Penumbra, Inc. 350.42 +36.99 (+11.80%)Top losersRGC Regencell Bioscience Holdings Limited 30.06 -5.11 (-14.53%)RCUS Arcus Biosciences, Inc. 21.79 -2.77 (-11.30%)CRCL Circle Internet Group 76.60 -8.20 (-9.67%)RDDT Reddit, Inc. 228.67 -23.71 (-9.39%)BEAM Beam Therapeutics Inc. 32.05 -3.36 (-9.49%)Most activeNVDA NVIDIA Corporation 186.99 +3.85 (+2.10%)INTC Intel Corporation 48.31 -0.42 (-0.85%)BBAI BigBear.ai Holdings, Inc. 6.18 -0.08 (-1.28%)GRAB Grab Holdings Limited 4.3900 -0.2400 (-5.18%)ONDS Ondas Holdings Inc. 12.82 -0.74 (-5.46%)Top economic eventsEarnings eventsMy earnings eventsEarnings events