Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Permanent Equity's 2025 annual letter emphasizes steady progress over explosive growth, highlighting successful implementation of Blueprint processes and board governance across portfolio companies. The manager reflects extensively on personal growth around truth-telling and overcoming fear of man, which he views as critical to effective leadership. The letter discusses the role of CEOs as arbiters of truth who must allocate attention, people, and capital effectively. A significant focus is placed on AI implementation, where despite substantial investment and hiring an AI expert, results were disappointing with frequent hallucinations and limited practical value. The firm is pulling back on AI ambitions while maintaining focus on relationships and judgment. The letter outlines plans to add outside board members cautiously to select portfolio companies. The manager emphasizes Permanent Equity's differentiated fee structure with no management fees, only performance fees tied to cash distributions. The overall tone reflects satisfaction with steady progress and long-term value creation approach.
Permanent Equity focuses on steady, unremarkable progress through disciplined capital allocation, truth-telling leadership, and long-term ownership of cash-flowing businesses without forced exit timelines.
Manager expresses gratitude for a stable year and acknowledges uncertainty about what the future holds, while emphasizing focus on steady progress and long-term value creation.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 6 2026 | 2025 Q4 | - | AI, Boards, Capital Allocation, Leadership, management, private equity, Truth | - | Manager invested significantly in AI capabilities in 2025 but found results disappointing compared to expectations. Despite hiring an AI expert and running dozens of experiments, the technology proved unreliable with frequent hallucinations and limited practical value for complex business tasks. |
| Jan 5 2025 | 2024 Q4 | - | - | - | |
| Jul 1 2024 | 2023 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
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| TICKER | COMMENTARY |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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