| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 22.1% | 18.2% | 44.8% |
| 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| 44.8% | -10.9% | 82.0% | -17.0% | 124.5% |
Sohra Peak Capital Partners delivered exceptional returns of +18.2% in Q4 2025 and +44.8% for the full year, significantly outperforming benchmarks. The partnership's success was driven primarily by concentrated positions in two companies, D-BOX Technologies and Dadelo, each experiencing triple-digit gains. The manager emphasizes this approach of finding one or two exceptional ideas annually and sizing them appropriately. With 84.6% of investments outside the US and an average market cap of $455MM across 12 holdings, the partnership maintains focus on global micro-cap opportunities. The manager conducted a thorough review of past losses to identify mistake patterns and improve future decision-making. The partnership is approaching its subscription limit of $3 million additional capacity before closing permanently to new investors, prioritizing investment returns over asset growth. Transitioning to semi-annual reporting to focus more time on investments, the manager remains confident in the long-term compounding strategy despite expecting future volatility.
Focus on finding exceptional micro-cap opportunities globally through concentrated investing, maintaining a small and nimble capital base to maximize returns rather than assets under management.
The manager remains confident in the partnership's ability to compound capital at the highest rate of return responsibly possible, with a focus on long-term CAGR rather than short-term performance consistency.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 2 2026 | 2025 Q4 | DBO.TO | Concentration, global, long-term, Micro-Cap, small caps, value | DBO CN | Sohra Peak delivered stellar 2025 returns (+44.8%) through concentrated micro-cap investing, led by D-BOX Technologies and Dadelo positions. The partnership maintains global focus with 84.6% non-US exposure across 12 holdings. Approaching subscription closure to preserve nimble capital base for highest conviction ideas. Manager emphasizes long-term compounding over short-term consistency. |
| Nov 14 2025 | 2025 Q3 | - | cash flow, Discipline, Japan, Quality, small caps, value | - | Sohra Peak returned +4.9% in Q3 while deliberately avoiding AI speculation that drove broader market gains. The partnership maintains disciplined value focus on quality small-cap companies with strong cash flows at low multiples. After extensive Japan research, considering basket approach for international exposure. Planning to close to new capital at $9M threshold to preserve concentrated investing capability. |
| Jul 25 2025 | 2025 Q2 | DAD.WA | E-Commerce, growth, Poland, retail, small cap, value |
DAD PW DAD.PW |
Small-cap focused partnership returned +16.4% in Q2 2025, outperforming benchmarks through concentrated positions in overlooked quality businesses. Key holding Dadelo exemplifies the strategy: a Polish bicycle retailer growing revenues at +39% CAGR, disrupting local competition through superior e-commerce and retail execution. Manager prioritizes investment quality over asset growth, planning to close to new capital soon. |
| Apr 25 2025 | 2025 Q1 | APR.WA | Currency, Field Research, global, international, Japan, Poland, small caps, value | - | Sohra Peak outperformed major indices in Q1 2025 with +0.4% returns despite tariff-driven volatility. The partnership is positioned for a potential multi-year shift from U.S. exceptionalism to international outperformance, with material non-U.S. exposure. Field research in Poland confirmed Auto Partner's growth prospects, while the manager explores attractive Japanese small-cap valuations. |
| Jan 29 2025 | 2024 Q4 | APE.AX, DNP.WA, DUR.AX, KTW.L, MAD.AX | Currency, global, growth, long-term, Quality, SmallCap, underperformance, value | - | Sohra Peak suffered -10.9% in 2024 versus S&P 500's 25.0% due to historic U.S. market dominance and dollar strength hurting non-U.S. small-cap value positioning. Portfolio companies grew profits but faced multiple compression. Manager maintains high conviction in current holdings and expects eventual mean reversion to benefit global value strategy. |
| Nov 1 2024 | 2024 Q3 | DNP.WA, DUR.AX, KTW.L, MAD.AX | defense, Foodservice, global, Poland, small caps, value | - | Small-cap value manager added to Polish and Australian holdings during market weakness, maintaining conviction despite underperforming US indices. Portfolio benefits from major Australian defense spending commitments and expects Polish consumer normalization. Concentrated 15-position portfolio with 84.5% non-US exposure targeting long-term compounding through quality businesses at attractive valuations. |
| Aug 8 2024 | 2024 Q2 | DINO.WA, DUR.AX, KTW.L, MAD.AX | AI, Concentration, international, small caps, underperformance, value | - | Concentrated small-cap international fund underperformed due to market preference for AI/large-cap US stocks despite strong portfolio company fundamentals. All holdings showed double-digit earnings growth while experiencing multiple contraction. Manager maintains long-term conviction in quality, growth, and free cash flow yield approach with 3-5+ year investment horizon. |
| Jun 13 2024 | 2024 Q1 | KTW.L | Australia, Concentration, Long Term, small caps, United Kingdom, value |
DUR.AX KTW.L |
Small-cap value partnership down 1.3% in Q1 due to Duratec weakness, which manager views as excessive given strong fundamentals. Added UK food distributor Kitwave Group at attractive 13.5x earnings with 22% historical EPS growth. Manager maintains long-term focus and high conviction in concentrated portfolio approach despite short-term volatility. |
| Jan 17 2024 | 2023 Q4 | ACIC, APZ.AX, DUR.AX, MAD.AX | Concentration, growth, Quality, small caps, value | - | Sohra Peak delivered 82% net returns in 2023 through concentrated value investing in undiscovered small-cap quality companies. Portfolio of 13 holdings with 74.5% top-5 concentration generated multiple winners including Auto Partner, Mader Group, Duratec, and American Coastal Insurance. Manager emphasizes patience for perfect opportunities over settling for good enough investments. |
| Nov 14 2023 | 2023 Q3 | DUR.AX, MAD.AX | Australia, defense, growth, Mining Services, small caps, value |
MAD.AX DUR.AX |
Sohra Peak delivered +27.0% in Q3 2023 through concentrated small-cap investing in structural market inefficiencies. Field research in Australia validated theses on Mader Group (mining services with massive North American expansion opportunity) and Duratec (asset remediation with defense segment scaling to $1B+ revenue). Both companies demonstrate strong competitive positions and multi-year growth runways. |
| Aug 28 2023 | 2023 Q2 | ACIC, MAD.AX | Australia, insurance, Long Term, Quality, small caps, value | ACA | Small-cap focused partnership delivered +17.1% in Q2 2023, significantly outperforming markets. Manager emphasizes high-quality companies with strong free cash flow growth, learning to hold winners longer after trimming Mader Group too early despite +689% gains. American Coastal Insurance shows strong momentum with potential for +100-200% upside over 2-3 years. |
| May 19 2023 | 2023 Q1 | AAPL, BHP.AX, DUR.AX, MLD.AX, MSFT, NVDA, RIO.AX | Australia, defense, infrastructure, Mining, Remediation, small cap, value | - | Small-cap focused partnership outperformed S&P 500 in Q1 with 7.8% net returns, reaching 22.9% year-to-date by April. Core thesis targets quality growth companies at bargain prices in inefficient markets. Heavy Australian exposure through infrastructure remediation play Duratec, benefiting from defense spending boom and AUKUS alliance. Portfolio trades at attractive 7.6x forward P/E with 21% implied earnings growth. |
| Aug 2 2023 | 2022 Q4 | DUR AU | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Healthcare ITCareCloud helps smaller U.S. health practices manage data and collect payments. High switching costs lock in practices but also lock out competitors. Most RCMs have high fixed costs and too few clients, creating consolidation opportunities for CareCloud to buy cheaply and cut costs. |
EHR RCM Healthcare Consolidation Switching Costs |
CementICG owns cement plants in Kazakhstan and Tajikistan with significant energy and transport cost advantages. Newest dry process plants with heat recovery versus competitors' older wet process plants. Strategic locations 100km closer to customers than competitors. |
Energy Efficiency Transport Kazakhstan Cost Advantage Infrastructure | |
ConstructionCTR Holdings builds structural frames and handles finishing work in Singapore. Most projects are public with stable government payments guaranteeing cash flow. Company had significant net cash and signed project backlog. |
Singapore Government Cash Flow Backlog Public Projects | |
| 2025 Q3 |
ValueThe partnership continues to apply a disciplined value approach, seeking high-quality businesses with strong free cash flow growth prospects at low valuation multiples. This stance may be unfashionable in a narrow market but prioritizes responsibility over popularity. |
Value Quality Cash Flow Multiples Downside Protection |
JapanAfter extensive research on individual Japanese companies revealed communication challenges, the partnership is considering a basket approach to Japanese equities. A trial basket of 25 deep value, small-cap Japanese stocks outperformed relevant indices with minimal downside risk. |
Japan Small Caps Deep Value Basket Quantitative | |
AIThe partnership has deliberately avoided chasing the AI theme despite potential for significant gains. Management views most AI investments as speculation rather than sustainable investment strategy, preferring to maintain discipline despite the current market momentum. |
AI Speculation Momentum Discipline Avoidance | |
| 2025 Q2 |
E-commerceDadelo operates as an omni-channel bicycle retailer with strong e-commerce foundation, offering free 24-hour delivery for 95% of orders and leveraging Oponeo's warehousing infrastructure. The company has achieved 7% market share in Poland's bicycle market through superior customer experience versus competitors. |
Omni-channel Delivery Warehousing Customer Experience Market Share |
Specialty RetailDadelo is expanding brick-and-mortar presence with large format stores designed to eliminate local mom-and-pop competition. The Warsaw store has reportedly caused 50 out of 300 local bicycle shops to close within one year, demonstrating the disruptive potential of the retail model. |
Brick-and-mortar Store Expansion Competition Market Disruption Retail Format | |
PolandInvestment focused on Polish bicycle retail market estimated at 4.5-5.0 billion złoty, with Dadelo targeting 35-40% market share. Management plans expansion to neighboring Czech, Slovak, and Hungarian markets once Polish operations reach one billion złoty in revenue. |
Polish Market Market Share Regional Expansion Revenue Target CEE Markets | |
| 2025 Q1 |
GlobalThe manager discusses a potential shift away from U.S. exceptionalism toward multi-year outperformance from non-U.S. markets and currencies. Foreign investors appear to be fleeing U.S. assets in record numbers, possibly triggered by de-globalization dynamics and rising geopolitical tensions. The portfolio has material non-U.S. exposure which could benefit from this trend. |
International Currency Outperformance Reallocation Cycles |
Small CapsThe partnership focuses on international small-cap companies, with recent research into Japan small-cap and micro-cap equities where companies appear to be trading at valuations among the lowest of the developed world. The manager emphasizes unique access to management teams in this space, often being the first U.S. investor to visit headquarters. |
Micro-cap Valuations Japan Management Access Research | |
PolandThe manager conducted field research in Poland on Auto Partner, visiting the company headquarters in Bieruń and meeting with management. The research confirmed expectations for Auto Partner's export segment plans and potential return to strong growth beginning in FY26 with the opening of its new Zgorzelec warehouse. |
Auto Partner Field Research Export Warehouse Growth | |
| 2024 Q4 |
ValueThe manager emphasizes finding companies with high quality businesses and management teams, delivering strong growth, and trading at low valuation multiples. The portfolio focuses on asymmetric opportunities that hardly anyone else seemed to know about, with screening for no-brainer investments being a key competitive advantage. |
Value Quality Growth Multiples Screening |
DollarThe U.S. Dollar Index appreciated by 7.1% in 2024 and 7.6% in Q4 alone, creating major headwinds for the portfolio's foreign currency positions. The dollar is valued at a 55-year high on a real effective exchange rate basis, with purchasing power parity suggesting eventual depreciation against other currencies. |
Dollar Currency Exchange Rate PPP Headwinds | |
AustraliaMost of the portfolio's non-U.S. investments were concentrated in Australia, along with Poland and the U.K. The Australian market delivered a negative return of -2.1% in USD terms in 2024, contributing to underperformance relative to the S&P 500. |
Australia Non-US Concentration Underperformance | |
PolandPoland was one of the three major non-U.S. markets where the portfolio was concentrated. The WIG index declined -3.3% in USD terms in 2024, representing another headwind for the portfolio's geographic positioning. |
Poland WIG Non-US Geographic | |
United KingdomThe U.K. was the third major non-U.S. market where the portfolio was concentrated. The FTSE SmallCap index gained 5.0% in USD terms in 2024, providing some relative outperformance compared to Australia and Poland but still lagging the S&P 500. |
UK FTSE SmallCap Geographic | |
| 2024 Q3 |
PolandTwo major Polish holdings - Auto Partner and Dino Polska - faced temporary headwinds from minimum wage increases, grocery deflation, and consumer pressure. Manager views these as short-term challenges with strong recovery prospects as macroeconomic conditions normalize and real wage increases translate to consumer spending. |
Poland Grocers Auto Parts Minimum Wage Deflation |
DefenseDuratec won significant defense contracts totaling $225 million at HMAS Stirling base. Australian government announced $12-20 billion in future defense spending to create the largest naval maintenance hub in the southern hemisphere at Henderson shipyard, providing strong long-term pipeline for Duratec. |
Defense Spending Naval Maintenance Australia Government Contracts Infrastructure | |
FoodserviceKitwave Group continued its UK foodservice wholesale roll-up strategy with acquisition of Creed Catering Supplies for 6.4x EV/EBITDA. The acquisition represents 20% of existing sales and positions Kitwave as a serious player in UK foodservice distribution. |
Foodservice Roll-up UK Distribution Consolidation | |
| 2024 Q2 |
Small CapsThe fund maintains heavy exposure to small-cap companies which were deeply out of favor during H1 2024. The manager notes that smaller-capitalization stocks were left in the dust while AI/semiconductor-related stocks experienced historic rallies. Despite underperformance, the manager remains confident in the long-term appreciation potential of small-cap holdings. |
Small Cap Underperformance Value Concentration |
ValueThe manager focuses on owning the most attractive combination of quality, growth, and free cash flow yield. Multiple contraction has driven negative returns despite strong earnings growth in portfolio companies. The approach emphasizes long-term value realization over short-term market movements. |
Free Cash Flow Multiple Contraction Quality Growth | |
AIThe fund did not own any AI/semiconductor-related stocks that experienced historic rallies in H1 2024. The manager notes that AI-related firms drove the 15% YTD rise in the S&P 500, while the fund's holdings stood in the anything else category. This positioning contributed to underperformance relative to the index. |
Semiconductor Magnificent 7 Nvidia Technology | |
| 2024 Q1 |
Food DistributionInitiated position in Kitwave Group, a UK food distributor serving 42,000 retail locations. Company has structural competitive advantages through scale-based bargaining power and operates in recession-proof industry. Management has strong track record with 22% EPS CAGR over seven years. |
Food Distribution Scale Recession Proof UK Convenience |
DefenseDuratec operates in defense sector with Department of Defense projects and benefits from Supply Nation accreditation for Indigenous-owned business projects. Company reported strong tender activity and maintains significant defense revenue exposure. |
Defense Government Tenders Indigenous Projects | |
| 2023 Q4 |
ValueManager focuses on finding quality companies with durable, rapidly growing profits at absolute bargain prices. Emphasizes companies that are deeply out of favor for wrong reasons or undiscovered by the investing world. Seeks high quality business with demonstrated history of growing revenues and profits at attractive price relative to intrinsic value. |
Contrarian Undiscovered Quality Bargain Intrinsic Value |
Small CapsPortfolio concentrated in smaller companies with average market cap of $269MM. Manager hunts in corners of the market where quality companies can be purchased at giveaway prices. Focus on companies that have not yet been widely discovered by the investing world. |
Concentration Undiscovered Market Cap Corners Discovery | |
| 2023 Q3 |
Mining ServicesMader Group operates offsite maintenance centers for mining vehicles with proprietary technology advantages. The company has over 40% market share in Australia but only captures 2-3% of the North American total addressable market, suggesting significant expansion opportunity. No competitors have been able to scale beyond a fraction of Mader Group's size and scope due to their technological investments. |
Mining Maintenance Technology Australia Expansion |
DefenseDuratec's Department of Defense business segment recently delivered $229MM in annual revenue and appears well-positioned to eventually become a $1B+ annual revenue standalone business unit. The company performs work at Department of Defense naval sites including Garden Island naval base off the coast of Perth. |
Defense Naval Government Revenue Growth Australia | |
| 2023 Q2 |
Small CapsManager focuses on small-cap and micro-cap equities as a core strategy, noting that while many small-cap stocks have struggled in the current environment dominated by mega-cap performance, their portfolio has continued to perform well. The fund maintains exposure to small-cap companies with an average market cap of $425MM across 12 holdings. |
Small Cap Micro Cap Market Cap |
QualityInvestment approach explicitly seeks companies of high business quality and management quality with the ability to grow free cash flow per share at high rates for many years. Manager emphasizes owning businesses with strong fundamentals and durable growth prospects, even when trading at higher multiples if growth justifies valuation. |
Quality Free Cash Flow Management | |
ValueManager has historically been biased towards owning businesses with lower trailing free cash flow multiples, currently owning only two businesses trading at over 15x Owner's Earnings estimates. This provides built-in protection to minimize downside risk, though the manager reflects this bias may have led to excessive caution on winners. |
Value Multiples Valuation | |
| 2023 Q1 |
Infrastructure SpendingManager extensively discusses Duratec's infrastructure remediation business, highlighting strong growth in Department of Defense contracts (+104% YoY) and the AUKUS military alliance guaranteeing $8B of maintenance spend. The Australian government has budgeted sustainment spend to almost double over this decade, creating a multi-year tailwind for infrastructure remediation services. |
Infrastructure Defense Remediation Australia AUKUS |
Defense SpendingStrong bullish positioning on defense-related infrastructure spending in Australia. Manager highlights Duratec's Department of Defense business growing 104% year-over-year and expects significant future revenue from AUKUS alliance commitments. Views defense as a key growth driver with multi-billion dollar opportunity. |
Defense AUKUS Military Australia Government | |
Small CapsManager focuses almost exclusively on small-cap and micro-cap companies, viewing them as structurally inefficient markets that provide opportunities to find quality companies at bargain prices. Notes that Russell 2000 gained only 2.7% in Q1 while their small-cap focused portfolio outperformed. |
Small Cap Micro Cap Inefficiency Value Opportunity | |
AustraliaHeavy geographic focus on Australian markets, particularly infrastructure and mining-related companies. Manager sees Australia as offering attractive opportunities in asset remediation, defense spending, and resource sectors. Duratec represents their largest detailed holding discussion. |
Australia Mining Infrastructure Resources Geographic |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 2, 2026 | Fund Letters | Jonathan Cukierwar | DBO CN | D-BOX Technologies Inc. | Information Technology | Specialty Hardware | Bull | New York Stock Exchange | Asymmetry, Conviction, entertainment, Haptics, microcap | Login |
| Jul 25, 2025 | Fund Letters | Jonathan Cukierwar | DAD PW | Dadelo S.A. | Consumer Discretionary | Specialty Retail | Bull | New York Stock Exchange | Bicycles, ecommerce, growth, Logistics, marketshare, retail | Login |
| Jul 25, 2025 | Fund Letters | Sohra Peak Capital Partners | DAD.PW | Dadelo S.A. | Consumer Discretionary | Specialty Retail | Bull | Warsaw Stock Exchange | Bicycle Retailer, e-commerce, Equity, Logistics Advantage, market share growth, Omni Channel, Poland, Specialty retail, store expansion | Login |
| May 29, 2024 | Fund Letters | Sohra Peak Capital Partners | DUR.AX | Duratec Limited | Industrials | Construction & Engineering | Bull | ASX | Australia, construction, Contracting, Defense, engineering, Industrial, infrastructure, Mining, turnaround, Value | Login |
| May 29, 2024 | Fund Letters | Sohra Peak Capital Partners | KTW.L | Kitwave Group plc | Consumer Staples | Food Distributors | Bull | LSE | consolidation, convenience stores, defensive, food distribution, growth, Restaurants, Roll-up, small-cap, UK | Login |
| Nov 14, 2023 | Fund Letters | Sohra Peak Capital Partners | MAD.AX | Mader Group | Energy | Oil & Gas Equipment & Services | Bull | ASX | Australia, Equipment Maintenance, growth, market share, Mining Services, North America Expansion, Proprietary technology | Login |
| Nov 14, 2023 | Fund Letters | Sohra Peak Capital Partners | DUR.AX | Duratec | Industrials | Construction & Engineering | Bull | ASX | Asset Remediation, Australia, Building Facades, Cladding Remediation, Defense Contractor, Diversified, growth, Mining Services | Login |
| Aug 28, 2023 | Fund Letters | Sohra Peak Capital Partners | - | Mader Group | Industrials | Construction & Engineering | Bull | ASX | Australia, Equity, growth, High Multiple, Mining Services, technical services | Login |
| Aug 28, 2023 | Fund Letters | Sohra Peak Capital Partners | ACA | American Coastal Insurance Corporation | Financials | Property & Casualty Insurance | Bull | NASDAQ | Casualty Insurance, Coastal Exposure, Equity, Hard Market, premium pricing, Property Insurance | Login |
| TICKER | COMMENTARY |
|---|---|
| DBO.TO | Our fourth quarter gains were driven primarily by our investment in D-BOX Technologies ("D-BOX"), a Canadian-based micro-cap company which became a material holding during the second half of 2025. In December 2025, we shared an investment memorandum detailing our thoughts on D-BOX, which can be found here for anyone interested. D-BOX is a position we continue to own with conviction. |
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