Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 4.2% | 41.0% |
| 2025 | 2024 |
|---|---|
| 41.0% | 5.8% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 4.2% | 41.0% |
| 2025 | 2024 |
|---|---|
| 41.0% | 5.8% |
Leaven Partners returned 4.2% in Q4 2025, bringing full-year returns to 41.0% compared to the S&P 500's 17.8%. The quarter's performance was driven primarily by a successful short Japanese yen position, which served as a currency hedge for the fund's Japanese stock holdings. The manager extensively explains their systematic approach to currency risk management, emphasizing that owning foreign securities inherently creates currency exposure that must be actively managed. Rather than using fundamental valuation models like purchasing power parity, they employ trend-following techniques to determine when to hedge currency exposure. This approach aims to reduce short-term volatility while capturing positive carry from interest rate differentials. The Japanese yen depreciated 6.5% against the dollar during the quarter, and the fund's short yen position contributed approximately 5% to returns. The manager views this currency hedging strategy as essential risk management rather than macro speculation, allowing them to focus on stock selection while managing the inherent currency risks of international investing.
The fund employs a systematic trend-following currency hedging strategy to manage foreign exchange risk while focusing on stock selection, aiming to reduce short-term currency volatility and capture positive carry rather than making macro currency bets.
The manager believes their systematic trend-following approach to currency hedging will reduce the impact of large currency swings over time while allowing the fund to earn positive yield in environments like today's, though acknowledging it will not get every quarter right as trends can reverse.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 19 2026 | 2025 Q4 | EFA, HD, HEFA, SPY, VT | Currency, Hedging, Japan, risk management, volatility | - | The manager extensively discusses currency hedging strategy for Japanese yen exposure, explaining how foreign stock ownership creates inherent currency risk. They employ a systematic trend-following… |
| Oct 13 2025 | 2025 Q3 | 7422 JP, MSTR | Bitcoin, diversification, International Equities, Japan, Value Investing | 7422 JP | Japanese corporate reforms and buybacks are driving renewed outperformance versus the U.S. Global diversification is regaining appeal after years of U.S. dominance. Bitcoins growing role… |
| Jul 21 2025 | 2025 Q2 | 6930 JP, 7229 JP, 9479 JP, 9867 JP | dislocation, mispricing, Sentiment, valuation, volatility |
7229 JP 6930 JP |
The letter discusses how sharp macro-driven selloffs and rapid rebounds have created repeated valuation dislocations across equities. Management emphasizes that forced selling, policy uncertainty, and… |
| Apr 12 2025 | 2025 Q1 | 3076 JP, 6715 JP | - | - | - |
| Jan 12 2025 | 2024 Q4 | - | - | - | - |
| Oct 11 2024 | 2024 Q3 | DBO | - | - | - |
| Jul 12 2024 | 2024 Q2 | AAPL, NVDA | - | - | - |
| Apr 22 2024 | 2024 Q1 | LSF | - | - | - |
| Jan 15 2024 | 2023 Q4 | - | - | - | - |
| Aug 10 2023 | 2023 Q3 | 3828 HK, 869 HK | - | - | - |
| Jul 16 2023 | 2023 Q2 | EQ, MTCR, STSA, XBI | - | - | - |
| Mar 31 2023 | 2023 Q1 | 6390 JP | - | - | - |
| Feb 15 2023 | 2022 Q4 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Currency |
|
| 2025 Q3 |
Bitcoin Treasury |
|
Global Diversification |
||
Japan Equities |
||
Value Investing |
||
| 2025 Q2 |
Dislocation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 13, 2025 | Fund Letters | Brent Jackson | 7422 JP | Toho Lamac Co., Ltd. | Consumer Discretionary | Footwear Retail | Bull | NYSE | balance sheet, cash, Crypto, Footwear, Japan, Revaluation, undervalued, value investing | Login |
| Jul 21, 2025 | Fund Letters | Brent Jackson | 7229 JP | Yutaka Giken Co., Ltd. | Consumer Discretionary | Auto Components | Bull | New York Stock Exchange | Auto parts, Japan, liquidation value, Operational Momentum, value investing | Login |
| Jul 21, 2025 | Fund Letters | Brent Jackson | 6930 JP | Nippon Antenna Co., Ltd. | Information Technology | Communications Equipment | Bull | New York Stock Exchange | Cost Controls, deep value, Japan, Net-Net, Overcapitalized Balance Sheet, turnaround | Login |
| TICKER | COMMENTARY |
|---|---|
| EFA | Let's examine the returns of otherwise identical indices, where one is hedged to the U.S. dollar and the other remains unhedged. A useful example is the MSCI EAFE (EFA, HEFA), a basket of stocks denominated in currencies such as the euro, yen, pound, and franc. Over the past year, this distinction has become evident: the unhedged EFA has returned 29.6%, while its currency-hedged counterpart, HEFA, has returned 21.6%. |
| HD | Conversely, our biggest detractors this quarter were DR Horton (DHI), Lennar Corp (LEN), Home Depot (HD). |
| HEFA | Over long horizons, the unhedged EFA and the currency-hedged HEFA have produced very similar annualized returns, differing by only a few tenths of a percent per year over 10-year and since-inception periods. Over the last 10 years, EFA has gained 79.8%, while HEFA has gained 80.8%. HEFA rebalances its currency hedge monthly, not daily or continuously. |
| SPY | Over the exact same period, the S&P 500 generated an annualized return of around 10.2%. A dollar invested passively in an S&P 500 ETF became roughly eleven dollars. The SPDR S&P 500 ETF Trust, is the most widely owned and actively traded ETF in the world. Its market capitalization today is roughly USD 700 billion—only about 1% of the total market capitalization of the S&P 500 constituents. Yet SPY's typical daily trading volume is USD 30–40 billion, while the combined daily trading volume of the underlying S&P 500 companies is approximately USD 500–700 billion. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||