| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 28.9% |
RV Capital's Business Owner Fund returned 28.9% in H1 2024, driven by investments in undervalued companies with strong owner-operators. The fund made its first oil and gas investment through International Petroleum, a Canadian company with production across three countries, attractive valuation metrics, and the Lundin family as major shareholders. The manager significantly expanded China exposure, adding NetEase, Yum China, H World, and Didi, describing Chinese valuations as the most astonishing of his career with blue-chip companies trading at single-digit to low double-digit P/Es despite strong fundamentals and aggressive capital returns. The letter extensively discusses ESG investing, with the manager criticizing current frameworks while supporting underlying environmental and governance principles. Key risks include China regulatory uncertainty and oil price volatility, while catalysts include IPCO's Blackrod development and Chinese companies' improved capital allocation. The fund maintains its focus on owner-operated businesses with sustainable competitive advantages.
The fund targets companies with rational and engaged owners trading at attractive valuations, recently expanding into Chinese equities at exceptional valuations and oil & gas through International Petroleum, while maintaining conviction that good governance and owner-operators drive superior long-term returns.
Manager expects continued opportunities in undervalued Chinese companies and energy sector, while maintaining focus on companies with rational owners and attractive valuations. Plans to potentially dive deeper into individual China investment hypotheses in 2024 annual letter.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Oct 1 2024 | 2024 Q2 | DIDI, HTHT, IPCO.TO, NTES, PRX.AS, YUMC | China, Esg, Governance, oil, value | IPCO.TO | RV Capital returned 28.9% in H1 2024, making first oil investment via International Petroleum and expanding China exposure with NetEase, Yum China, H World, and Didi. Manager sees exceptional valuations in China with blue-chips at single-digit P/Es. Extensive ESG discussion criticizes current frameworks while supporting underlying principles. Focus remains on owner-operators with attractive valuations. |
| Jan 10 2023 | 2023 Q3 | - | - | - | |
| Jun 30 2023 | 2023 Q2 | CACC, CRM, CVNA, IBKR, META, PRX.AS, RYM.NZ, WIX | Concentration, global, Long Term, Quality, value | - | Concentrated global value fund targeting quality businesses with strong management at attractive prices. Maintains high conviction positions across technology, financial services, and healthcare sectors. Strong 2023 performance with 27.1% YTD returns demonstrates the effectiveness of patient, long-term capital deployment in undervalued opportunities with durable competitive advantages. |
| Mar 31 2023 | 2023 Q1 | CACC, CRM, CVNA, IBKR, META, PRX.AS, WIX | Concentration, global, Long Term, Quality, value | - | Business Owner TGV is a concentrated global value fund that invests like a business owner in quality companies with competitive advantages and rational management. After a difficult 2022, the fund rebounded strongly in Q1 2023 with 15.9% returns, maintaining its long-term focus on businesses expected to flourish over ten-year horizons. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2024 Q2 |
ChinaChina's economic rebalancing appears to be moving forward. Market liquidity, anti-involution and a measured consumer policy are likely to drive a sustained market performance in 4Q. Fiscal support and ongoing reforms in China is supportive of a stronger currency. |
Growth Policy Currency |
OilOil markets disrupted by closure of Straits of Hormuz affecting 20% of global production. Prices surged from $70 to $119.50 before retreating to $90. Market may be tighter than commonly believed despite IEA projections of surplus. Oil represents cheapest major asset class globally, trading at near-record lows relative to gold. |
Crude Brent WTI Hormuz Supply |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 1, 2024 | Fund Letters | RV Capital | IPCO.TO | International Petroleum Corporation | Energy | Oil & Gas Exploration & Production | Bull | Toronto Stock Exchange | Canada, Commodity Producer, Cyclical, energy, Equity, family ownership, Free Cash Flow, M&A, Oil & Gas, Share Buybacks, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| IPCO.TO | While International Petroleum Company's (IPCO) operating income declined in line with oil prices remaining under pressure during 2025, the primary driver of value for the company is the successful development of its Canadian oil sands project, Blackrod. The owner-operator management team has executed this project well, and Blackrod is coming online later in 2026 — ahead of schedule and under budget. |
| NTES | During the quarter, we added to an existing holding in Netease |
| PRX.AS | Prosus is a core, long-term holding primarily valued for its substantial stake in Tencent, a company we believe has significant growth potential and a strong global competitive advantage. A key element of our thesis is that Prosus's current market capitalization is less than the value of its Tencent holding alone. In addition to the Tencent stake, Prosus holds an estimated $35 billion in other listed and unlisted assets. |
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