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

Core Insights - Mar Vista Investment Partners reported strong momentum in US equities for 2025, marking the second consecutive year of double-digit gains, with a notable recovery from a bear market dip in April [1] - The Mar Vista U.S. Quality strategy achieved a net-of-fees gain of +0.20% in Q4 2025, underperforming the Russell 1000® Index (+2.41%) and the S&P 500® Index (+2.65%) [1] - Stock selection in communication services, consumer discretionary, and financials sectors positively impacted performance, while information technology, materials, and healthcare sectors detracted from it [1] - The letter indicated that in 2026, markets will need to balance strong fundamentals with increasing economic uncertainties [1] Company Insights - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was highlighted as a key stock, with a one-month return of 19.59% and a 52-week gain of 60.16% [2] - As of January 13, 2026, TSM's stock closed at $331.21 per share, with a market capitalization of $1.72 trillion [2] - TSM is recognized as the dominant manufacturer of semiconductors for leading fabless chip designers, including NVIDIA and Apple, and is noted for its technological leadership in producing advanced chips [3] - The company benefits from a competitive moat due to its scale economies, proprietary process know-how, and decades of manufacturing expertise, resulting in structurally higher gross margins compared to peers [3]