Q2 2025 Performance Review

A Message From Our CEO:

Organized in May 2024, the TreeTop Wealth Fund Inc. (TTWF) is a finance organization using a contrarian philosophy toward investment strategy. The fund aims to outperform major indexes, including the S&P 500, Dow Jones Industrial Average, Nasdaq 100, and the Russell 2000, by single to double-digit percentage points every quarter. Value investing remains at the core of the Tree Top Wealth Fund’s success, utilizing tools and investment strategies from Benjamin Graham’s, The Intelligent Investor. 

With roughly 10 years of investment experience, our CEO, Daniel Schwarz-Ruso, has generated nearly 700% since his portfolio’s inception. He reminds investors that investing with the Tree Top Wealth Fund means that “a dollar today will be worth more tomorrow.”

Tree Top Wealth Fund Q2 2025 Performance Commentary

We proudly report that the Tree Top Wealth Fund (TTWF) significantly outperformed all major market indices during the second quarter of 2025. TTWF delivered a robust return of 19.43%, exceeding the performance of the Nasdaq (16.68%), the S&P 500 (10.15%), the Russell 2000 (8.09%), and the Dow Jones Industrial Average (5.01%).

This outperformance occurred despite a turbulent macroeconomic backdrop. On “Liberation Day,” President Donald Trump announced sweeping tariffs impacting roughly 60 countries. A 10% universal tariff—excluding Canada and Mexico—was imposed, alongside aggressive reciprocal tariffs, with rates peaking at 145% against China. The policy sparked a sharp market sell-off, with major indices declining between 10% and 20% over two weeks.

Investor anxiety surged as concerns mounted over rising inflation, corporate pricing power, and the sustainability of U.S. fiscal policy. The national debt reached $36.2 trillion, with 80% held domestically. Trump’s recent signing of the “Big Beautiful Bill Act” raised further questions about how the U.S. would manage its soaring interest expenses, now the country’s largest budget line item. Uncertainty and volatility were the defining forces of Q2.

Despite this environment, TTWF was well-positioned. Entering the quarter with high levels of cash, the fund strategically deployed capital during the downturn into oversold technology and industrial equities, including Broadcom Inc. (AVGO), Kaiser Aluminum (KALU), Dell Technologies (DELL), and Super Micro Computer Inc. (SMCI). Staying true to its contrarian philosophy of “going against the grain,” TTWF capitalized on the panic, generating a 15% return within one month.

This performance affirms the strength of TTWF’s investment framework: ignore the noise, exploit market inefficiencies, and focus on fundamentally undervalued assets. Other notable contributors to performance included 24kt gold, Eli Lilly (LLY), and investment bank Jefferies Financial Group (JEF).

By the end of Q2, markets rebounded sharply, nearing all-time highs. Key economic indicators revealed a resilient labor market, softer-than-expected inflation data, and increasing confidence that Federal Reserve Chair Jerome Powell may begin cutting interest rates in the second half of 2025.

TTWF’s strong results during a volatile quarter reinforce our conviction in a disciplined, opportunistic investment strategy grounded in long-term fundamentals.

2025 Q3 Outlook:

While financial markets may be trading near all-time highs and appear to be dismissing concerns over trade tensions and inflation that may follow, mounting U.S. debt, and fiscal policy uncertainty, The Tree Top Wealth Fund (TTWF) is not ignoring these risks. These issues carry significant long-term implications for market stability and investor returns.

That said, we remain opportunistic, but cautious. In Q3 2025, we will continue to seek out mispriced assets and compelling entry points driven by market dislocations. In our view, volatility will remain a defining feature of the investment landscape. We anticipate continued strength in precious metals such as gold and silver, alongside select industries with strong macro tailwinds. These include defense, specialized healthcare, and domestically protected steel and aluminum producers. We also see promising developments in artificial intelligence, and are closely monitoring leading players such as Nvidia (NVDA), Amazon (AMZN), and Google (GOOG) for potential entry.

Lastly, we are actively watching industrial giants including Boeing (BA), GE Aerospace (GE), Honeywell (and its post-split segments, HON), and Caterpillar (CAT). We are prepared to initiate positions once valuations and market timing align with our risk/reward criteria.

For any questions, please do not hesitate to contact us at the following email: treetopwealthfund@gmail.com.

Thank you, 

The Tree Top Wealth Fund