| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.8% | - | 20.5% |
| 2025 |
|---|
| 20.5% |
Sandon Capital Activist Fund delivered -0.2% in December 2025, bringing annualized returns since inception to 10.8%. The fund maintains zero cash levels with concentrated exposure across 23 long positions and 3 short positions. Key contributors included Coventry Group (+0.6%) and Fleetwood (+0.4%), offset by COG Financial Services (-0.7%) and QPM Energy (-0.5%). Significant corporate developments included QPM Energy securing $30 million in funding for its Isaac Power Station project, which remains on track for mid-2027 commissioning. Seven West Media shareholders approved acquisition by Southern Cross Media Group, though management views this as value-destructive diworsification. BCI Minerals obtained critical government approvals for its Cape Preston West Port dredging operations, with first salt shipments targeted before year-end. The portfolio reflects the manager's activist approach to Australian small-cap investing, targeting undervalued companies where engagement can unlock value through operational improvements and strategic changes. Limited news flow is expected in January before February earnings season.
The fund focuses on Australian small-cap activist investing, seeking companies trading below intrinsic value where active engagement can drive positive change in corporate governance, capital management, and strategic direction.
We expect another quiet month for news flow in January with activity picking up when the December half reporting period kicks off in mid-February.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 5 2026 | 2025 Q4 | BCI.AX, COG.AX, CYG.AX, FWD.AX, MFG.AX, QPM.AX, SWM.AX, SXL.AX | Activist, Australia, energy, Media, Mining, small caps | - | BCI Minerals secured all primary approvals from Federal and WA State governments for optimized dredging at Cape Preston West Port, with dredging expected to commence… |
| Oct 7 2025 | 2025 Q3 | - | Activist Investing, Corporate Governance, Media, Mergers and acquisitions, small caps |
SXL COG FWD BCI |
The letter discusses constructive activism as a way to unlock value through governance engagement and strategic change. Sandon emphasizes working with boards and management teams… |
| Jul 14 2025 | 2025 Q2 | - | activism, Capital Allocation, Governance, shareholder alignment, value | - | The letter centers on active ownership as a catalyst for value creation, emphasizing engagement with boards, governance reform, and capital allocation discipline. Management argues that… |
| Apr 9 2025 | 2025 Q1 | COG AU, CYG AU, FWD AU, WLD AU | - | - | - |
| Sep 30 2024 | 2024 Q3 | BCI AU, COG AU, CYG AU, FWD AU, GDC AU, IDT AU, KAR AU, MFG AU, MWY AU | - | - | - |
| Oct 7 2022 | 2024 Q2 | CCX AU, FWD AU, GDC AU, IDT AU, MWY AU | - | - | - |
| Apr 15 2024 | 2024 Q1 | A2B AU, BCI AU, COG AU, CYG AU, FWD AU, GDC AU, MFG AU, MWY AU | - | - | - |
| Dec 31 2023 | 2023 Q4 | A2B AU, CYG AU, LNK AU, MFG AU | - | - | - |
| Oct 31 2023 | 2023 Q3 | BCI AU, COG AU, CYG AU, FWD AU, MFG AU | - | - | - |
| Jul 15 2023 | 2023 Q2 | FWD AU, IDT AU, MFG AU | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Energy TransitionEnergy transition themes are reflected through infrastructure investments and companies positioned for the global push toward renewable energy, including exposure to energy services and LNG infrastructure where long-term dynamics look positive. |
Renewables Infrastructure Clean Energy Sustainability Climate |
MediaWarner Bros Discovery was the top contributor as multiple parties submitted acquisition offers, with Netflix acquiring the Streaming and Studios business while Global Networks spins to shareholders. Paramount Skydance made a $30 per share offer for the entire company, creating a bidding war that unlocked shareholder value. |
Streaming M&A Content Entertainment Bidding | |
Mining ServicesMining contractor Macmahon Holdings renewed a key Queensland resources contract whilst announcing new wins in iron ore and renewables markets, contributing positively to performance. |
Mining Contractors Iron Ore Renewables | |
| 2025 Q3 |
ActivismShareholder activism continues to grow with 152 campaigns in North America in 2025, a 20.6% increase from 2024. The strategy has evolved from stigmatized to accepted and now necessary as passive investing increases. Non-activist managers are resorting to activism to realize intrinsic value as fewer investors buy and sell based on fundamentals. |
Shareholder activism Proxy contests Board representation Value creation Catalyst |
Governance |
||
M&A |
||
MediaEntravision was the fund's top performer in Q4, owning 49 television stations and 44 radio stations targeting Hispanic audiences. The company also operates a rapidly growing Advertising Technology & Services segment through Smadex subsidiary. Deregulation in broadcast television and radio should encourage industry consolidation. |
Advertising Media Broadcasting | |
| 2025 Q2 |
ActivismShareholder activism continues to grow with 152 campaigns in North America in 2025, a 20.6% increase from 2024. The strategy has evolved from stigmatized to accepted and now necessary as passive investing increases. Non-activist managers are resorting to activism to realize intrinsic value as fewer investors buy and sell based on fundamentals. |
Shareholder activism Proxy contests Board representation Value creation Catalyst |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 7, 2025 | Fund Letters | Gabriel Radzyminski | SXL | Southern Cross Media Group Ltd. | Communication Services | Media & Entertainment | Bear | Australian Securities Exchange | Activism, Digital, Governance, media, merger, restructuring | Login |
| Oct 7, 2025 | Fund Letters | Gabriel Radzyminski | COG | COG Financial Services Ltd. | Financials | Diversified Financial Services | Bull | Australian Securities Exchange | Finance, growth, Leasing, M&A, recurring revenue | Login |
| Oct 7, 2025 | Fund Letters | Gabriel Radzyminski | FWD | Fleetwood Ltd. | Industrials | Construction & Engineering | Bull | Australian Securities Exchange | construction, growth, Housing, Industrial, infrastructure | Login |
| Oct 7, 2025 | Fund Letters | Gabriel Radzyminski | BCI | BCI Minerals Ltd. | Materials | Industrial Metals & Mining | Bull | Australian Securities Exchange | Australia, Commodities, development, Mining, Potash | Login |
| TICKER | COMMENTARY |
|---|---|
| BCI.AX | BCI Minerals Ltd (BCI) announced that it had secured all primary approvals from the Federal and WA State governments to enable its optimised dredging method at the Cape Preston West Port, with dredging expected to commence in April 2026. The company also announced that Australian Super had converted its Series 1 Convertible Notes into ~50 million shares at a conversion price of $0.5811 per share. The company remains on target for first salt on ship before the end of this calendar year. |
| COG.AX | These were offset by COG Financial Services Ltd (COG) (-0.7%) |
| CYG.AX | The largest positive contributors were Coventry Group Ltd (CYG) (+0.6%) |
| FWD.AX | Freightways (+3.6%) positive contributor to performance. |
| MFG.AX | The Fund's most significant contributor to performance during the month was Magellan (+4.9%). At a high level, most will think of Magellan as a (shrinking) investment manager of global listed infrastructure and equity funds. While the market continues to view Magellan primarily through the rearview mirror of its legacy funds management business, our thesis focuses on the less-appreciated value within its 'Capital Partners' segment – in particular the rapid ascent and move to profitability of their stake in Barrenjoey. At a high level, the market implies little value to Magellan outside of its core funds management operations, ignoring the growth from their 36.4% interest in investment bank, Barrenjoey, 29.5% stake in quant investment manager, Vinva, and 16% holding in financial market infrastructure provider, FinClear. The revolving door of issues at Magellan appears to have slowed, management team stabilised, and outflows from the legacy business moderated. Meanwhile Barrenjoey has successfully disrupted the local investment banking oligopoly -- securing top-tier league table positions in M&A and equity capital markets within its short existence -- and, crucially, transitioned from a capital-intensive build phase to a more cash-generative harvest phase, whilst still expanding offshore. Barrenjoey paid its maiden dividend in FY25, and with both Barrenjoey and Vinva set to distribute dividends in the first half of fiscal 2026, we see an improving earnings profile ahead compared to that endured in recent years. The thesis is supported by a pristine balance sheet that offers significant downside protection as the business carries no debt and holds around $560 million in excess capital across cash and liquid investments. It may take several years for this excess capital to fully benefit shareholders, though progress is being made including management buying back approximately 5% of shares on issue over the last 12 months at an average price of $8.15, and broadening the dividend policy to 80% of (the more diversified) group operating profit. Whilst we've only taken a modest position in the portfolio, we see a brighter future ahead for Magellan. With 18% of its market capitalisation in cash and financial assets, and shares selling for discounted single digit earnings multiple, we are paying a deeply discounted price for the investment management business and effectively getting the growth optionality of Barrenjoey – and to a lesser extent, Vinva and FinClear – almost for free. |
| QPM.AX | QPM announced the successful completion of an oversubscribed $30 million placement and the signing of a $40 million non-binding convertible note facility term sheet. Funds raised under the placement will allow the company to order critical long lead items with the Isaac Power Station (IPS) remaining on target for commissioning in mid-2027. Should the convertible note become binding and a $180 million joint project finance facility between Macquarie and the Northern Australian Infrastructure Facility be provided, we expect that the development of IPS to be fully funded. |
| SWM.AX | Seven West Media Ltd (SWM) shareholders approved the acquisition of SWM by Southern Cross Media Group Ltd (SXL) by way of Scheme of Arrangement (Scheme). The Scheme became legally effective on Christmas eve and is expected to be implemented on 7th January. |
| SXL.AX | Over the past few years, SXL had repaired its balance sheet, reduced costs and returned to profitability growth. As we have previously described, we view the acquisition of SWM as a diworsification of the SXL business. |
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