Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 40.1% | 9.9% | 66.2% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 66.2% | 13.6% | 6.9% | 15.8% | 146.5% | 26.3% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 40.1% | 9.9% | 66.2% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 66.2% | 13.6% | 6.9% | 15.8% | 146.5% | 26.3% |
Fairlight Alpha Fund delivered 9.9% net returns in Q4 2025, bringing full-year performance to 66.2% and since-inception annualized returns to 40.1%. The fund significantly outperformed through concentrated positions in junior gold miners like Monument Mining and Serabi Gold, which benefited from rising gold prices and production optimization while remaining undervalued at attractive cash flow multiples. Technology holdings including Logic Instrument and Shelly Group contributed through strong moats and growth in niche markets. The manager identifies a hidden recession occurring outside AI-related sectors, as massive capital expenditure shifts toward AI infrastructure create headwinds for traditional industries. This trend presents both risks and opportunities, with the fund positioned to benefit from AI-adjacent growth while exploiting value dislocations in overlooked sectors. The portfolio maintains focus on companies with strong fundamentals trading at attractive valuations due to market misunderstanding or narrative-driven mispricing. Risk management remains disciplined while pursuing long-term capital compounding through high-conviction, undervalued positions with clear inflection catalysts.
Fairlight Alpha Fund targets undervalued companies with strong fundamentals that remain mispriced due to market narratives, overlooked business inflections, or macro-driven pricing distortions, particularly in junior gold miners and niche technology companies.
The manager expects to continue navigating markets by filtering stocks to find fresh ideas that combine high growth, exceptional value, and strong inflection drivers while maintaining disciplined risk management. The focus will be on compounding capital over the long term while protecting downside risk.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 23 2026 | 2025 Q4 | ALLOG.PA, MMY.TO, SHEL.DE, SRB.L | AI, commodities, Gold Miners, small caps, technology, value |
SRB LN SLYG GR BOF |
Junior gold miners like Serabi Gold and Monument Mining benefited from rising gold prices and increased production optimization. These companies remain undervalued despite strong cash… |
| Oct 25 2025 | 2025 Q3 | BKM SP | Artificial Intelligence, Data centers, gold, Robotics, turnaround |
BEZ SP BEZ SP |
The fund gained 16.8% for the quarter, driven by AI-related investments, junior gold miners, and company-specific turnarounds like Beng Kuang Marine. Management discussed AI infrastructure… |
| Aug 10 2025 | 2025 Q2 | - | AI Infrastructure, dislocation, mispricing, valuation, volatility |
TSSI US SRB LN |
The letter highlights recurring market dislocations created by tariff shocks, sentiment reversals, and extreme valuation dispersion. Management focuses on exploiting mispricings in overlooked growth and… |
| Apr 17 2025 | 2025 Q1 | MCB CN, MMY CN, SBI CN | - | - | - |
| Feb 8 2025 | 2024 Q4 | ALLOG FP, BOF | - | - | - |
| Nov 6 2024 | 2024 Q3 | CZBS, MCB CN, MMY CN | - | - | - |
| Jul 30 2024 | 2024 Q2 | - | - | - | - |
| May 3 2024 | 2024 Q1 | MCB CN, SP9 GR | - | - | - |
| Jan 27 2024 | 2023 Q4 | CZBS, MCB CN, MFBP | - | - | - |
| Oct 31 2023 | 2023 Q3 | - | - | - | - |
| Jul 25 2023 | 2023 Q2 | 0327 HK, OPRA | - | - | - |
| Apr 16 2023 | 2023 Q1 | OPRA | - | - | - |
| Jan 16 2023 | 2022 Q4 | CZBS, MFBP, OPRA | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
Gold MinersMultiple gold mining companies delivered strong performance with several high-grade discoveries and resource expansions. Companies like Spanish Mountain Gold, Endurance Gold, and Omai Gold reported significant drill results and resource growth potential. |
Gold Mining Exploration Resources High-grade | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
GoldGold returned +65% in dollars in 2025, driven by broadening demand from central banks, professional and retail investors. Central banks now hold 24% of reserves in gold versus 23% in US Treasuries for the first time. Maintained 12% portfolio allocation throughout the year. |
Central Banks Reserves Diversification Demand | |
| 2025 Q2 |
Dislocation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 23, 2026 | Fund Letters | Andrew Martin | SLYG GR | Shelly Group SE | Information Technology | Consumer Electronics | Bull | Xetra | compounding, Distribution, IoT, Smart home, Software | Login |
| Jan 23, 2026 | Fund Letters | Andrew Martin | BOF | BranchOut Food Inc. | Consumer Staples | Packaged Foods | Bull | OTC | consumer, Food tech, growth, patents, Scalability | Login |
| Oct 25, 2025 | Fund Letters | Andrew Martin | BEZ SP | Beng Kuang Marine Ltd. | Energy | Marine | Bull | Singapore Exchange | — | Login |
| Oct 25, 2025 | Fund Letters | Andrew Martin | BEZ SP | Beng Kuang Marine Ltd. | Energy | Marine | Bull | Singapore Exchange | — | Login |
| Aug 10, 2025 | Fund Letters | Andrew Martin | TSSI US | TSS, Inc. | Information Technology | IT Consulting & Other Services | Bull | NASDAQ | growth, infrastructure, rerating, valuation, Volatility | Login |
| Aug 10, 2025 | Fund Letters | Andrew Martin | SRB LN | Serabi Gold plc | Materials | Gold | Bull | NYSE | cashflow, Exploration, Gold, Margins, Mining | Login |
| Jan 23, 2026 | Fund Letters | Andrew Martin | SRB LN | Serabi Gold plc | Materials | Gold | Bull | New York Stock Exchange | cashflow, Gold, Mining, production growth, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| ALLOG.PA | Looking at the rest of the portfolio, there were several other contributors to performance in the last year across a variety of sectors including technology, energy, and consumer discretionary. Starting with technology the largest contributor was Logic Instrument, a manufacturer and distributor of robust laptops, tablets, and other devices. We have discussed this name elsewhere but we believe this business has a very strong moat within a niche subsector. Their salesforce has built up a unique set of relationships with a customer base across Europe that is revealed periodically when new deals are announced. In addition, the nature of the business is such that new entry is difficult because of the high level of certification requirements for these devices in terms of their ability to withstand high temperatures, pressures, and shocks within inhospitable environments. These products sell into military, exploration, research, and industrial applications and use cases. |
| MMY.TO | Monument Mining has been ramping up production of gold from their sulphide ore mine (having smartly switched from oxide ore processing several years ago). They reached a level of production of 13,092oz in Q1, 2026 (quarter ending September 30, 2025), as well as reaching a level of cash of $62 million. Again, management has been excellent here, increasing operational efficiency, production levels, as well as funding new exploration from cash flow. The hidden optionality here is the Murchison mine complex in Australia. Even if we assign zero value to this asset we still reach the conclusion that this name is currently too cheap. Monument Mining is also exceptionally efficient having achieved AISC levels in the region of $1,000/oz to $1,100/oz. Taking the current production run rate (which of course may vary), current gold sale prices give an approximate 2026 operating cash flow of $192 million. Monument currently trades at an enterprise value of $250 million. |
| SHEL.DE | Shelly Group has been discussed extensively elsewhere and is more of a well-known name. Suffice to say it shows all the hallmarks of being a long-term compounder, having grown revenues by 40.2% in 2024 and 44.0% 1H 2025 year-on-year. It has some competition, but within its pricing model looks capable of dominating residential IoT. The clever move here has been the pivot from 'hobbyist' roots into the professional infrastructure channel. The DIN-rail 'Pro' line is fast becoming a standard for electricians in the DACH region. The software strategy is also excellent, integrating with ecosystems like Home Assistant and KNX rather than fighting them, which we think positions Shelly as the pragmatic winner in a fragmented market. |
| SRB.L | Starting with Serabi Gold, we would point the interested reader towards an excellent interview with the CEO Mike Hodgson released on September 13, 2024 by Crux Investor. This discussion covers the future plans and projects for the company to reach a targeted 60,000oz of gold production, noting that for 2024 they reached 37,520oz. Their strategy to achieve this growth includes commissioning an ore sorter to enhance processed grades through color-based ore sorting, expanding exploration activity, and improving the efficiency of ore transportation and logistics. The ore sorter is now online and operating, and exploration continued through 2024 and 2025, with some results still outstanding, and continued ramp up of the Coringa mine. Production for 2025 was 44,169oz with management guiding for 53,000oz to 57,000oz of gold production in 2026. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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