| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 0% |
Sorfis Investments delivered positive returns across strategies in 2025, with Diversified Strategy returning 7-15% and Absolute Return Strategy achieving 13-18%. As self-described value investors, they experienced typical value stock patterns: strong Q1 performance, underperformance after Liberation Day, and solid year-end gains. The manager emphasizes three key themes: AI's transformative potential driving unprecedented capital expenditures in data centers and infrastructure, the continuation of their value investing approach finding opportunities outside major indices, and expectations for returning market volatility to create additional opportunities. Key concerns include record S&P 500 valuations and concentration levels that historically precede flat or negative decade-long returns, plus uncertainty around AI spending returns and duration. The firm trimmed overvalued positions and added during volatility periods, with positioning decisions influenced by tax considerations across account types. Looking forward, they maintain their disciplined value approach while preparing for eventual market volatility and bubble corrections, drawing lessons from Warren Buffett about patience and opportunistic investing during market dislocations.
Value investing approach focused on finding opportunities outside major indices while maintaining discipline and patience, particularly as markets face record valuations and unprecedented AI-driven capital expenditure cycles.
The manager continues to find good value outside of major indices and expects to find more opportunities if volatility returns to markets, as it eventually always does. They maintain a cautious stance given record valuations and concentration levels.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 30 2026 | 2025 Q4 | BRK-A | AI, Capital Expenditures, technology, Valuations, value, volatility | - | Value-focused manager delivered solid 2025 returns while navigating record market valuations and AI-driven capital expenditure boom. Trimmed expensive holdings, added during volatility, and continues finding opportunities outside major indices. Expects eventual market volatility to create more value opportunities while maintaining disciplined approach amid unprecedented technology spending and concerning valuation levels. |
| Feb 24 2025 | 2024 Q4 | - | AI, Consumer Staples, defensiveness, international, technology, Valuations, value | - | Sorfis delivered solid returns despite value underperforming growth in 2024's second half. With S&P 500 at historic valuation peaks and corporate bankruptcies rising, they're positioned defensively while seeking opportunities in international markets and Consumer Staples. The manager views current market conditions as unsustainable but remains optimistic about finding value in less popular stocks away from overpriced indices. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Live SportsManager sees significant value in sports teams and entertainment assets, citing strong viewership numbers and global interest. Recommends Atlanta Braves, Madison Square Garden Sports, Manchester United, and Rogers Communications as undervalued relative to private market values. Views sports as hot investment category with institutional interest growing. |
Sports Teams Entertainment Media Rights Valuation |
MediaBullish on media companies with sports content and live programming. Fox benefits from NFL and MLB rights plus World Cup coverage. Versant Media Group seen as attractive post-spinoff opportunity trading below intrinsic value. Focus on companies with live sports and news content that command premium advertising rates. |
Broadcasting Content Advertising Spinoffs | |
Natural GasPositive on National Fuel Gas due to strategic Appalachian Basin acreage and regulated utility operations. Company expanding through Ohio acquisition while maintaining conservative management approach. Natural gas provides 40% of US electric power with Appalachian reserves strategically located near population centers. |
Utilities Energy Infrastructure Reserves Regulation | |
AIAcknowledges AI as transformative technology that is accelerating and changing economy and society. However, warns of potential disappointment for investors and compares to late 1990s tech boom with multiple speculative solutions. Expects volatility and potential selloff in AI-related stocks including Magnificent Seven. |
Technology Disruption Valuations Volatility | |
AerospaceSees value in Albany International's aerospace composites business, particularly lightweight components for LEAP engines. Company exploring strategic alternatives and potential spin-off of structures assembly business. Views aerospace segment as undervalued relative to mature paper business. |
Defense Composites Restructuring Valuation | |
| 2024 Q4 |
ValueManager positioned equity exposure toward value and away from growth throughout 2024. Value outperformed from January through July but detracted from performance as growth indices outperformed value by approximately 25% during the rest of the year. The manager continues to focus on getting good value for money when investing clients' capital. |
Value Growth Valuations Discrepancy Attractive |
AIThe manager discusses the dominance of artificial intelligence narrative in driving market concentration, with the Mag 7 tech names contributing to the S&P 500's highest concentration levels. Staggering capital expenditures by big tech companies for AI infrastructure are noted, though the manager questions whether benefits will accrue to companies or flow through to customers. |
AI Technology Capital Expenditures Infrastructure Mag 7 | |
CryptoThe manager notes that 2024 saw a meme coin craze in the cryptocurrency market, drawing parallels to the meme stock craze of 2021. Both years exhibited overlapping euphoria in both cryptocurrency and stock markets, contributing to speculative market conditions. |
Crypto Meme Coins Speculation Euphoria |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| BRK-A | Miles mentioned that he had been a long-term shareholder of Berkshire Hathaway and had never sold his shares. Over roughly twenty-five years, his investment compounded at about 10.9% annually. The first dollar he invested became approximately thirteen dollars. Since around 1990, Berkshire has only marginally outperformed the S&P 500. By Buffett's own historical standards, this period could be described as mediocre. And yet, admiration for Buffett has not faded—if anything, it has intensified. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||
