Group 1 - Bretton Fund achieved an 8.21% return in Q3 2025, outperforming the S&P 500 Index which returned 8.12% [1] - Alphabet Inc. (NASDAQ:GOOG) was highlighted as a key stock, with a one-month return of 14.39% and a 52-week gain of 63.24% [2] - On October 27, 2025, Alphabet Inc. closed at $281.90 per share, with a market capitalization of $3.399 trillion [2] Group 2 - A favorable antitrust ruling for Alphabet Inc. allowed its core search business to remain largely intact, contributing 3.1% to the fund's performance this quarter [3] - Alphabet Inc. ranked 7th among the 30 Most Popular Stocks Among Hedge Funds, with 178 hedge fund portfolios holding its shares at the end of Q2 2025, up from 164 in the previous quarter [4] - In Q3 2025, Alphabet Inc. achieved its first-ever $100 billion in revenue, although the company is viewed as having less upside potential compared to certain AI stocks [4]

Core Insights - The favorable antitrust ruling for Alphabet's Google has allowed the company to maintain its core search business, positively impacting its stock performance and contributing 3.1% to the fund this quarter [3] - UnitedHealth's stock rebounded after a significant decline earlier in the year, adding 0.9% to the fund, driven by optimistic comments from the new CEO and investment interest from Berkshire Hathaway [4] - Progressive was the largest detractor in the quarter, reducing performance by 0.5% due to concerns over lower interest rates affecting investment income [5] Performance Summary - The Bretton Fund achieved a return of 8.21% for the third quarter, outperforming the S&P 500 Index, which returned 8.12% [7] - Over the past year, the fund's return was 8.92%, while the S&P 500 Index returned 17.60% [7] - The fund's inception date was September 30, 2010, and it has delivered a 12.89% return since inception [7] Portfolio Composition - As of September 30, 2025, Alphabet Inc. constituted 11.51% of the fund's net assets, making it the largest holding [11] - Other significant holdings included AutoZone Inc. at 7.11% and The Progressive Corporation at 6.84% [11] - The fund also held positions in major companies like American Express, JPMorgan Chase, and UnitedHealth, each contributing to the overall portfolio diversity [11] Investment Actions - The fund sold its position in Union Pacific Corp after nearly 15 years, achieving a 13% annualized internal rate of return [14] - The decision to sell was influenced by concerns over a pending acquisition that could dilute shareholder value and distract management from core operations [15]

Core Viewpoint - Analysts may be underestimating the potential of certain quantum AI stocks, presenting a contrarian investment opportunity as Wall Street may not fully recognize their value [1][2]. Company Summaries Alphabet - Alphabet is the largest communication services stock globally and the fourth-largest across all sectors, known for its Google ecosystem and a leader in quantum computing through its Google Quantum AI unit [3]. - Despite a recent surge in stock performance, analysts predict a decline in momentum, with the consensus 12-month price target below the current share price; however, 54 out of 65 analysts rated it as a buy or better, indicating strong potential [4]. - The impact of Google Quantum AI on stock performance is expected to be minimal in the next 12 months, but AI technologies not reliant on quantum computing are anticipated to drive significant revenue growth for Google Cloud [5]. IonQ - IonQ focuses entirely on quantum computing and AI, achieving significant milestones such as improved classification accuracy in large language models [6]. - Following a strong performance in early 2025, IonQ's stock has surged, but analysts predict a decline, with the consensus 12-month price target significantly below the current share price [7]. - Despite concerns over profitability and a high price-to-sales ratio of 303, six out of eight analysts rated IonQ as a buy or strong buy, reflecting confidence in its technology and strategic acquisitions [8][9]. Rigetti Computing - Rigetti gained attention for reducing its two-qubit gate error rate and launching the Cepheus 1-36Q, the largest multichip quantum computer [10]. - The company has performed well in the quantum computing sector, but analysts expect a downturn, with the average 12-month price target nearly 50% below the current share price [11]. - All three analysts covering Rigetti recommend buying the stock, despite lower price targets, and the company is positioned to benefit from advancements in quantum computing and AI [12].