| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 13.2% | 24.6% |
| 2024 |
|---|
| 25.6% |
Marlton Partners returned 25.6% net in 2024, driven by a concentrated portfolio of special situations trading at discounts to net asset value with hard catalysts. The fund focuses on asset-covered investments including controlled conglomerates, liquidating REITs, music royalties, ship lessors, and digital assets from bankruptcy estates. Key contributors included a NASDAQ-listed conglomerate, London-listed residential REIT in sale process, and music royalties acquired at 65% premium. The firm systematized research in UK Investment Trusts, capitalizing on growing activist presence that created governance activity and capital return mechanisms. Notable positions include PRS REIT in active sale process with 21-24% NAV discount, and successful engagement with Jupiter Green Investment Trust resulting in voluntary liquidation proposal. Bolloré position was reduced 50% after spin-off results disappointed expectations. The fund is well-positioned for 2025 with full research pipeline tracking over 60 special situations across UK Investment Trusts and planned integration of US Closed-End Funds.
Marlton invests in asset-covered situations trading at discounts to net asset value with hard catalysts to unlock value, focusing on UK Investment Trusts and US Closed-End Funds offering periodic exit opportunities.
The fund is well-positioned to deploy capital and believes the 2025 investment environment will be favorable to the situations and security classes in which they are currently most active and knowledgeable. With a full research funnel tracking over 60 current events and special situations, they enter the New Year with optimism.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Dec 31 2024 | 2024 Q4 | ALHG.PA, API.L, AVAX-USD, BOL.PA, CAN.L, HAVAS.AS, JARA.L, JGC.L, MCG.JO, ODET.PA, PRSR.L, PSH.L, SOL-USD, TPOU.L, TURN, VIV.PA, VPLAY-B.ST | activism, catalysts, Investment Trusts, Liquidations, NAV Discount, real estate, special situations, value |
PRSR.L BOL.PA JGC.L JARA.L API.L |
Marlton delivered 25.6% returns in 2024 through concentrated special situations investing, focusing on asset-covered securities trading below NAV with hard catalysts. The fund systematized UK Investment Trust research amid growing activism, successfully engaged in corporate actions, and maintains a pipeline of 60+ opportunities. Well-positioned for 2025 deployment in favorable environment. |
| Apr 27 2023 | 2023 Q1 | ABNB, AMZN, ASML, BALL, CDNS, CRM, CSGP, CSTM, DHR, GOOGL, LIN, MELI, MRNA, MU, NEE, NTDOY, NVDA, ORSTED.CO, TSM, WDAY | AI, Digital Transition, growth, innovation, semiconductors, technology | - | NZS Capital delivered strong Q1 performance driven by technology and AI beneficiaries, outperforming benchmarks by 9 percentage points. The firm positioned for AI acceleration by favoring semiconductor infrastructure providers while maintaining underweight exposure to vulnerable financial institutions. They view generative AI as transformative and expect markets to shift from macro concerns toward company-specific fundamentals as rate compression nears completion. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2024 Q4 |
Special SituationsMarlton focuses on asset-covered situations trading at discounts to net asset value with hard catalysts to unlock value. The fund systematically identifies candidates offering periodic exit opportunities at or near NAV across UK Investment Trusts and US Closed-End Funds. Portfolio includes liquidating REITs, controlled conglomerates, and various corporate actions. |
Liquidations Catalysts NAV Discount Corporate Actions Asset Coverage |
Investment TrustsGrowing activist presence turned UK Investment Trusts into a hotbed of governance activity in 2024. Many UK IT Boards implemented conditionally triggered capital return mechanisms and periodic corporate actions. Marlton systematized top-of-funnel research in UK Investment Trusts and plans to integrate US Closed-End Funds by Q2 2025. |
UK Investment Trusts Governance Capital Returns Activism Closed-End Funds | |
Real EstateMultiple REIT positions including PRS REIT in active sale process with substantial upside potential, liquidating US REIT purchased below cash-on-hand, and abrdn Property Income Trust completing asset sale to GoldenTree. Portfolio includes both active sale processes and completed liquidations. |
REITs Property Asset Sales Liquidation NAV Discount | |
CryptoThree digital asset special situations contributed to 2024 performance, including assets purchased out of the FTX bankruptcy estate. Fund continues to hold equity investments in Locked Solana Coin and Locked Avalanche Coin with no material updates during the period. |
Digital Assets Bankruptcy FTX Solana Avalanche | |
| 2023 Q1 |
AIGenerative AI is accelerating innovation and disruption across sectors, with ChatGPT reaching 100M users in two months. Enterprise SaaS companies need AI strategies or risk being left behind by new entrants. The firm adjusted portfolio positioning to favor early AI beneficiaries. |
Generative AI ChatGPT Enterprise Disruption Innovation |
SemiconductorsSemiconductors are crucial to an AI-enabled future and represent infrastructure providers for disruptive forces. AI servers require significantly more memory content, setting up a healthy backdrop for semiconductor equipment companies as markets recover from the current downcycle. |
AI Infrastructure Memory Equipment TSMC Foundries | |
Energy TransitionThe analog-to-digital transition continues across the global economy, with inflationary pressures adding fuel to the digital shift which provides deflation. Reshoring and massive investment in high-tech infrastructure remain attractive opportunities. |
Digital Transition Infrastructure Reshoring Deflation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | Fund Letters | Marlton Partners | PRSR.L | The PRS REIT plc | Real Estate | Residential REITs | Bull | London Stock Exchange | Asset backed, Catalyst-Driven, NAV discount, REIT, Residential, sale process, strategic review, UK | Login |
| Dec 31, 2024 | Fund Letters | Marlton Partners | BOL.PA | Bolloré SE | Capital Markets | Diversified Capital Markets | Bear | Euronext Paris | conglomerate, Corporate action, france, holding company, media, spin-off, Sum-of-parts discount, Value trap | Login |
| Dec 31, 2024 | Fund Letters | Marlton Partners | JARA.L | JPMorgan Global Core Real Assets Limited | Real Estate | Diversified REITs | Bull | London Stock Exchange | arbitrage, Asset backed, investment trust, Liquidation, NAV discount, Real assets, UK, Wind down | Login |
| Dec 31, 2024 | Fund Letters | Marlton Partners | JGC.L | Jupiter Green Investment Trust plc | Capital Markets | Asset Management & Custody Banks | Bull | London Stock Exchange | Activist engagement, Catalyst realization, Corporate Governance, Green investing, investment trust, Liquidation, NAV discount, UK | Login |
| Dec 31, 2024 | Fund Letters | Marlton Partners | API.L | abrdn Property Income Trust Limited | Real Estate | Diversified REITs | Bull | London Stock Exchange | Asset Sale, Cash distribution, Liquidation, Natural capital, NAV discount, REIT, Rump shares, UK | Login |
| TICKER | COMMENTARY |
|---|---|
| PRSR.L | Early in the month, PRS announced that the newly constituted Board had made available a data room, and is in active discussions with multiple parties regarding a potential sale of the company. We expect updates both on the strategic review and the formal sales process in the first quarter of 2025. In our view that there remains substantial upside from here in the event of a sale of the company. Pending portfolio completion and stabilization, we believe PRS commands a look-through NAV of ~£1.37 to ~£1.41. Traded prices at December-end correspond to a discount of -21.5% to -23.7%. |
| BOL.PA | We fundamentally misappraised both the collective value the market was willing to ascribe to the parts on break-up, and the market's reaction to the event, as reflected in Bolloré's discount. The most significant deviation from our expectations was in the valuation of Canal+. After adjusting for stakes in MultiChoice (MCG.JSE), Viaplay (VPLAY-B.STO), and the Viu JV, Canal+ is now trading at approximately 2x EV/EBITDA. In contrast, the Vivendi RemainCo is trading at a discount of over 50% to its liquid portfolio. Following the spin-off, the sum-of-the-parts (SOTP) discount at the Bolloré level widened substantially, contrary to our expectation of either a discount-neutral or narrowing outcome. We have reduced our position in Bolloré by approximately 50%, realizing a 350bps gross loss relative to our cost basis. While we believe significant value remains to be unlocked, we view the catalyst path through the first half of 2025 as minimal. |
| JGC.L | On the 18th December, JGC announced the Board is proposing a scheme of reconstitution and voluntary liquidation, under which shareholders would have the option to either: (1) roll-over their investment in JGC into units into a correspond Jupiter unit trust, or (2) exit in cash at a modest discount to NAV. The announcement concludes Marlton's successful and constructive engagement with JGC. Following a period when shares traded at a discount of up to 33% to liquid NAV in the second quarter, Chair Michael Naylor initiated a strategic review in July 2024. We acquired shares at a high-teens discount to NAV and engaged with the Board proposing an exchange offer, allowing eligible shareholders to exchange their JGC shares for units in the Jupiter Ecology Fund, or to exit in cash close to NAV. |
| JARA.L | On the 20th December, shareholders voted in favour of both EGM proposals, and JARA formally entered managed wind-down. Announcing November-end NAV of ~£0.96, versus our cost basis established in early-November, we created a position in the liquidation at an effective -25% discount to NAV. |
| API.L | API completed its sale of its assets to GoldenTree at the end of November. Proceeds were directed to an initial distribution of 52p a share payable on the 24th December, by issue and redemption of bonus shares. A further distribution of 3p a share is payable as dividend on the 10th January. We retain our rump API shares which trade for a -37% discount to NAV composed mostly of cash and the Company's interest in a natural capital asset at Far Ralia. |
| TURN | We continue to hold equity investments that we have previously discussed in, 180 Degree Capital Corp (TURN), Pershing Square Holdco, L.P. (PSI), Third Point Investors Ltd. (TPOU.L), our investments in Locked Solana Coin (SOL) and Locked Avalanche Coin (AVAX). There have been no material updates, so we defer discussion about these investments for now. |
| PSH.L | We continue to hold equity investments that we have previously discussed in, 180 Degree Capital Corp (TURN), Pershing Square Holdco, L.P. (PSI), Third Point Investors Ltd. (TPOU.L), our investments in Locked Solana Coin (SOL) and Locked Avalanche Coin (AVAX). There have been no material updates, so we defer discussion about these investments for now. |
| TPOU.L | We continue to hold equity investments that we have previously discussed in, 180 Degree Capital Corp (TURN), Pershing Square Holdco, L.P. (PSI), Third Point Investors Ltd. (TPOU.L), our investments in Locked Solana Coin (SOL) and Locked Avalanche Coin (AVAX). There have been no material updates, so we defer discussion about these investments for now. |
| SOL-USD | We continue to hold equity investments that we have previously discussed in, 180 Degree Capital Corp (TURN), Pershing Square Holdco, L.P. (PSI), Third Point Investors Ltd. (TPOU.L), our investments in Locked Solana Coin (SOL) and Locked Avalanche Coin (AVAX). There have been no material updates, so we defer discussion about these investments for now. |
| AVAX-USD | We continue to hold equity investments that we have previously discussed in, 180 Degree Capital Corp (TURN), Pershing Square Holdco, L.P. (PSI), Third Point Investors Ltd. (TPOU.L), our investments in Locked Solana Coin (SOL) and Locked Avalanche Coin (AVAX). There have been no material updates, so we defer discussion about these investments for now. |
| 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 | |||
