Dear Investors, Partners, and Colleagues:
As the new year begins and the first rays of dawn appear, Harpers Capital and Lotus Asset Management extend our deepest gratitude and warmest New Year wishes to our valued friends, investors, partners, and team members. May you and your families enjoy good health, happiness at home, lasting prosperity, and continued success—like a river flowing steadily onward.
Reflecting on 2025, global markets were marked by significant volatility and change. A year ago, we committed to staying true to our core principles of prudence, professionalism, and discipline amid uncertainty: an unclear Federal Reserve policy outlook, rising geopolitical tensions, sharp swings in U.S. Treasury yields, rapid advances in artificial intelligence, and the gradual rollout of China’s economic stimulus measures. Our goal has always been clear—to protect your capital and deliver sustainable long-term growth.
Our partnership team remains grounded in integrity, guided by caution, and driven by deep expertise. Together with you, we have stayed focused on lasting value and future opportunities. This commitment has been tested by tough markets and has held firm. The strength and stability of our approach owe everything to your unwavering trust, steadfast support, and constant companionship—as well as to our team’s daily dedication and absolute commitment to every promise made. Together, these efforts have delivered strong results and meaningful returns for all.
The past year brought both challenges and opportunities: early sharp adjustments across global assets and deep pullbacks in U.S. stocks; three cautious rate cuts by the Fed with limited easing; elevated risk premiums due to geopolitical conflicts; and orderly implementation of China’s policies supporting real estate and capital markets, aiding a moderate economic recovery. Yet the U.S. economy showed remarkable resilience, fueled by the AI boom, with the S&P 500 rising around 18% for the year and repeatedly reaching new highs. Major crypto assets held relatively steady, while bonds offered attractive opportunities amid volatility.
In this environment, our team honored its fiduciary responsibility, placing professionalism, discipline, and risk management at the center of everything we do. We achieved solid results across strategies: private equity investments targeted core AI areas, capturing long-term value from technological innovation with precision; fixed-income strategies carefully managed duration and credit risk to generate consistent outperformance; global macro approaches dynamically allocated across assets and regions to seize structural opportunities; our quantitative risk systems strictly limited tail risks, providing strong portfolio protection; and our multi-strategy platform proved highly resilient, delivering robust returns while effectively controlling drawdowns.
These outcomes reflect both the depth of our team’s expertise and our guiding philosophy: staying steady through storms and thriving when opportunities emerge.
Looking to 2026, the global economic and policy outlook is moving toward greater balance, with clearer visibility ahead and signs of spring on the horizon. The Fed’s direction is becoming more predictable, U.S.-China trade tensions are easing, AI continues to advance rapidly, and moderate recovery is taking shape. Fresh opportunities are emerging in bonds, technology, consumer sectors, and systematic risk management. We remain committed to prudence, professionalism, and discipline, and we look forward to continuing this journey together—capturing new possibilities and building lasting value.
We sincerely thank you for standing with us through the challenges of 2025. It is your mountain-strong partnership that has allowed us to stay resolute and navigate complex markets with confidence.
“As the Dipper turned north last night, this morning the year rises in the east. Farmers read the signs of the weather, all proclaiming abundance this year.”
As we step into 2026, we wish you and your families health, happiness, and prosperity. May you ride the fresh winds of the new year, seize the moment, and enjoy continued investment success.
With warm regards,
Zhu Lei Hong Hao
On behalf of the Partner Team at Harpers Capital and Lotus Asset Management
January 1, 2026