| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 20.8% | 3.4% | 20.1% |
| 2025 | 2024 |
|---|---|
| 20.1% | 8.2% |
1 Main Capital Partners delivered strong Q4 2025 performance with a 3.4% net return, outperforming both the S&P 500 and Russell 2000. The fund's concentrated approach in smaller, old-economy businesses continues to generate alpha, with 2025 full-year returns of 20.1% net and since-inception annualized returns of 20.8%. The three largest holdings - IWG, BFIT, and DNTL - contributed 30% gross returns, while the fund successfully exited underperforming positions like SUP before further deterioration. Manager Yaron Naymark significantly increased the position in Limbach Holdings, making it a core holding again after shares declined 55% due to temporary demand concerns. The building systems company has successfully transitioned to higher-margin owner-direct relationships, driving EBITDA margins from 3% to 12%. Looking forward, the manager sees abundant opportunities in mispriced smaller companies while mega-caps trade at elevated valuations, positioning the concentrated portfolio to benefit from the market's shift toward passive investing and short-termism.
1MC focuses on concentrated fundamental investing in high-quality, smaller businesses trading at attractive valuations, particularly in old-economy sectors that remain ignored by the market.
The manager remains confident that share prices follow the trajectory of free cash flow per share over the long term. The portfolio is viewed as significantly more attractive than the indices, with many holdings generating double-digit FCF yields while reinvesting at high rates of return. The fund is positioned to take advantage of market dislocations through acquisitions, moat widening, and share buybacks by aligned management teams.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 24 2026 | 2025 Q4 | BFIT.AS, DNTL, IWG.L, LMB, MBUU, MCFT, PRKR, RLGT, SUP, WATR | Building Systems, concentrated, FCF, Industrial Services, small caps, value | LMB | The fund focuses on finding attractive opportunities where high quality meets low valuation, particularly in smaller, old-economy businesses that remain ignored and mispriced. Many top holdings generate double-digit FCF yields while trading at bargain multiples. The fund capitalizes on smaller companies consistently underperforming larger companies since inception, providing opportunities to acquire high-quality businesses at attractive multiples. The portfolio is concentrated in smaller, overlooked businesses. |
| Oct 7 2025 | 2025 Q3 | RLGT | cyclicals, Freight, Logistics, small caps, Value Investing | RLGT | #N/A |
| Aug 23 2025 | 2025 Q2 | MCFT | dislocation, fundamentals, small caps, valuation gaps, volatility | MCFT | The letter highlights a pronounced market bifurcation where large-cap growth and speculative stocks command premium valuations while small, profitable businesses trade at steep discounts. Management argues that volatility driven by tariffs, shifting sentiment, and narrow market leadership creates recurring dislocations that reward disciplined, long-term investors. The strategy focuses on exploiting these mispricings by buying high-quality businesses with strong balance sheets and aligned management when the market has abandoned them. |
| Apr 30 2025 | 2025 Q1 | ARVN, ENZB, THRD | - | - | |
| Feb 14 2025 | 2024 Q4 | ENZ, IWG LN, SUP | - | - | |
| Oct 25 2024 | 2024 Q3 | PRKR, QCOM | - | - | |
| Jul 27 2024 | 2024 Q2 | BNED | - | - | |
| May 16 2024 | 2024 Q1 | BFIT NA, CZR, ENZ | - | - | |
| Jan 23 2024 | 2023 Q4 | DNTL, IWG, LMB, RICK | - | - | |
| Nov 11 2023 | 2023 Q3 | ENZ, SP | - | - | |
| Jul 23 2023 | 2023 Q2 | BFIT NA, DNTL CN, IWG LN, KKR, LMB | - | - | |
| Apr 13 2023 | 2023 Q1 | DNTL CN, LMB | - | - | |
| Jan 24 2023 | 2022 Q4 | APG, FIGS | - | - | |
| Jan 11 2022 | 2022 Q3 | IWG LN, KKR | - | WILC |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy |
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 |
Cyclicals |
|
Discipline |
||
LogisticsDeutsche Post demonstrated resilience with strong performance following robust earnings despite tariff-related challenges, driven by robust pricing power and cost control. The diversified logistics company showcased the defensive characteristics of quality logistics operators in challenging environments. |
Pricing Power Cost Control Tariff Resilience Diversified Logistics Earnings | |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy | |
ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic | |
| 2025 Q2 |
Dislocation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 8, 2025 | Seeking Alpha | Quipus Capital | WILC | G Willi-Food International | Consumer Staples | Food Distribution | Neutral | NASDAQ | — | Login |
| Oct 7, 2025 | Fund Letters | Yaron Naymark | RLGT | Radiant Logistics | Industrials | Air Freight & Logistics | Bull | NYSE | 3pl, Acquisitions, capital allocation, compounding, Freight, Logistics, Transportation, valuation | Login |
| Aug 23, 2025 | Fund Letters | Yaron Naymark | MCFT | MasterCraft Boat Holdings, Inc. | Consumer Discretionary | Recreational Vehicles | Bull | NASDAQ | boats, buybacks, Cyclical, Recreation, turnaround | Login |
| Jan 24, 2026 | Fund Letters | Yaron Naymark | LMB | Limbach Holdings, Inc. | Industrials | Commercial & Professional Services | Bull | NASDAQ | Acquisitions, Buildingsystems, Freecashflow, infrastructure, Margins, Ownerdirect | Login |
| TICKER | COMMENTARY |
|---|---|
| BFIT.AS | Basic-Fit was one of the Fund's three largest holdings in 2025 and among the largest winners, contributing to the combined 30% gross return. The fund continues to hold a material position accounting for just under half of capital. At quarter-end, Basic-Fit was the Fund's top position. |
| DNTL | DNTL was one of the Fund's three largest holdings in 2025 and among the largest winners, contributing to the combined 30% gross return. DNTL was acquired by GTCR. |
| IWG.L | International Workplace Group was one of the Fund's three largest holdings in 2025 and among the largest winners, contributing to the combined 30% gross return. The fund continues to hold a material position accounting for just under half of capital. |
| LMB | Limbach Holdings was the Fund's top contributor in 2020 and 2023 and has been the most lucrative investment since inception. In Q4, the manager added significantly to the position, once again making it a core holding for the Fund, after shares declined 55% from their 2025 high due to concerns around a temporary demand slowdown. LMB is a leading building systems solution firm specializing in mechanical, electrical, and plumbing systems. The company has transitioned from general contractor relationships to owner-direct relationships, driving EBITDA margins from 3% in 2019 to 12% today. The manager believes LMB can grow FCF per share at approximately a 20% CAGR over the medium term. |
| MBUU | MBUU is part of the ski/wake basket that was one of the Fund's top five positions at quarter-end, accounting for approximately 65% of capital combined with other top holdings. |
| MCFT | MCFT is part of the ski/wake basket that was one of the Fund's top five positions at quarter-end, accounting for approximately 65% of capital combined with other top holdings. |
| PRKR | PRKR was one of the Fund's three largest detractors in 2025, costing a combined 6% gross. The fund added to PRKR, about which the manager remains optimistic. |
| RLGT | Radiant Logistics was one of the Fund's top five positions at quarter-end, accounting for approximately 65% of capital combined with other top holdings. |
| SUP | Superior Industries lost two key customers in May which accounted for nearly 35% of their total revenue and essentially sent the stock price to zero. We completely exited the Superior Industries position in pre-market trading the morning they announced their customer loss – realizing a 67% loss vs. the eventual 97% loss. |
| WATR | WATR was one of the Fund's three largest detractors in 2025, costing a combined 6% gross. The fund sold WATR after the manager lost faith in management. |
| 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 | |||
