Moerus Capital Management

Investor Summary

Amit Wadhwaney is the Portfolio Manager and Co-Founding Partner of Moerus Capital Management, bringing over 25 years of experience managing global investment portfolios across developed, emerging, and frontier markets. Prior to founding Moerus in 2015, he was a Partner and Portfolio Manager at Third Avenue Management LLC, where he founded the international business. His earlier career included serving as Director of Research at M.J. Whitman LLC and analyst positions at Bunting Warburg and Domtar. Wadhwaney holds an MBA from the University of Chicago and multiple degrees from Concordia University and University of Minnesota. He has managed global investment portfolios since 1996 and has extensive experience researching and analyzing investment opportunities in over 50 countries worldwide. The firm was co-founded with former Third Avenue colleagues Michael Campagna and John Mauro, both CFA charterholders, creating an experienced team that has worked together for more than a decade.

Fund Strategy

Moerus is an investment research-centric organization dedicated to seeking attractive long-term returns while mitigating downside risk. They are patient, long-term value investors with a typical holding period of three-to-five years, focusing on intrinsic value rather than short-term results. Their portfolio is unconstrained by geography, industry, or indices, built from the bottom-up based on individual merits. They do not rely on macroeconomic forecasts but remain macro-aware, assessing vulnerability to adverse scenarios to mitigate downside risk. Their valuation emphasizes conservative, asset-based estimates over speculative future cash flows to ensure a margin of safety and downside protection. They aim to buy securities of companies that trade at substantial discounts to their conservative estimates of intrinsic value, focusing heavily on risk mitigation and avoiding permanent loss of capital rather than market volatility.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
11.38%	0.14%	5.37%

Executive Summary

The Moerus Worldwide Fund returned 5.37% in H1 2026, lagging benchmarks amid an AI-driven frenzy that saw capital flood into technology stocks while fleeing traditional sectors. The Fund significantly outperformed in Q1 before giving back gains in Q2 as semiconductor stocks soared. Energy holdings were the largest contributors, benefiting from the Iran conflict and oil price surge, with positions in Valaris, Aker ASA, Tidewater, and International Petroleum performing well. Precious metals holdings declined in Q2 on inflation concerns and rate expectations. Manager actively avoids AI-related stocks due to excessive valuations and downside price risk, drawing parallels to the dot-com bubble. The bifurcated market created opportunities in unloved areas, with new positions initiated in UK homebuilding, agricultural equipment, and Indian life insurance and chemicals. Manager eliminated Valaris following Transocean takeover and redeployed proceeds. Despite near-term underperformance, the Fund has significantly outperformed both benchmarks over 3, 5, and 10-year periods. Manager remains committed to patient, contrarian approach focused on discounted prices and long-term value creation.

Forward Outlook

Manager expresses cautious optimism about long-term opportunities despite near-term market bifurcation. Views current environment of extreme disparity between hot AI-related areas and unloved sectors as fertile hunting ground for deep value opportunities. Believes reduction in competing value investors due to attrition and style drift bodes well for Fund's approach going forward. Expects portfolio holdings to create enduring shareholder value over long run despite near-term volatility. Remains committed to patient, long-term investment approach focused on discounted prices and fundamental business quality rather than short-term market trends or benchmark performance.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Aug 13 2026	2026 Q2	AKRBF, BRBY.L, CNHI, DC.TO, DOUG, EXOR.MI, GGAL, GRFRF, IPCO, LICI.NS, NTCO, SMGZY, TATACHEM.NS, TDW, TPK.L, VAL, WPM	Consolidation, contrarian, deep value, energy, international, long-term, Precious Metals, value	-	Moerus returned 5.37% in H1 2026, lagging AI-driven benchmarks but outperforming over longer periods. Energy holdings led gains from Iran conflict while precious metals declined. Manager actively avoids overvalued tech, instead finding opportunities in UK homebuilding, ag equipment, and Indian financials at significant discounts. Extreme market bifurcation between hot AI stocks and unloved sectors creates fertile hunting ground for deep value approach.
May 4 2026	2026 Q1	AKER.OL, IPCO-TO, NATU3.SA, TDW, VAL	energy, Geopolitical, international, Offshore Drilling, oil, value, volatility	VAL NATU3.SA IPCO.TO TDW AKER.OL	Moerus Worldwide Fund delivered strong Q1 performance through value-driven corporate activity and energy exposure during Middle East conflict. The fund's price-conscious approach targets discounted, out-of-favor investments that attract strategic buyers or benefit from market revaluation. Management views current volatility as opportunity, maintaining long-term focus while adding to positions weakened by geopolitical concerns.
Jan 30 2026	2025 Q4	1200.HK, CMW.AX, DC.TO, DOUG, EXOR.MI, JEF, JSE.L, LTM, NTCO3.SA, STAN.L, TARS, TSGYO.IS, VAL, VALT.L, WED.TO	Banking, contrarian, emerging markets, international, Mining, Recovery, value, volatility	-	Moerus delivered strong Q4 returns through contrarian value investing in deeply discounted opportunities where pessimistic expectations created upside potential. Top performers included Valterra Platinum, Midland Holdings, and LATAM Airlines, all purchased when sentiment was dire. The manager believes ongoing volatility from geopolitical and trade uncertainties will continue providing attractive long-term buying opportunities for patient investors focused on fundamental values.
Aug 7 2025	2025 Q2	0388.HK, 1200.HK, 1821.HK, BBDO, CBD, CCO, CPA, CS.TO, DC.TO, DESP, DOUG, EDELWEISS.NS, EFX.TO, FIH.TO, GGAL, TDW, TPK.L, UCG.MI, VAL, WPM	Brazil, Hong Kong, international, Offshore Drilling, Precious Metals, tariffs, value, volatility	BBD TPK LN VAL TDW	Moerus Worldwide Value Fund delivered strong 20.21% first-half returns by capitalizing on tariff-induced volatility to acquire depressed international value opportunities. Precious metals and offshore drilling holdings drove performance while new positions in Brazilian banking and Hong Kong real estate reflect contrarian positioning in unloved markets trading at significant discounts to intrinsic value.
Dec 31 2024	2024 Q4	0388.HK, 1821.HK, 1910.HK, AAL.L, ARCO, BAJAJHLDNG.NS, BMA, CBD, DESP, DGX, EFX.TO, GGAL, IDFCFIRSTB.NS, JEF, MEG.TO, NTCO, STAN.L, TID, TSGYO.IS, UCG.MI	Argentina, Banking, contrarian, fundamentals, Hong Kong, international, Turkey, value	-	Moerus Worldwide Value Fund delivered strong 2024 performance by capitalizing on distressed opportunities in Argentina and Turkey while avoiding overvalued U.S. mega-cap tech stocks. The unconstrained global approach enabled investments in quality businesses at exceptional valuations during periods of macro chaos, with early economic improvements driving significant outperformance versus international benchmarks.
Jun 30 2024	2024 Q2	0388.HK, ARCO, BSBR, CWP.AX, DESP, DOUG, EXO.MI, GGAL, HMSO.L, IPCO, JEF, MEG.TO, NTCO, PCAR3.SA, SPB, STAN.L, STNG, TDW, TECK, TSGYO.IS, UCG.MI, WED.TO	Argentina, Corporate Activity, emerging markets, real estate, Turkey, value	-	Moerus delivered 7.90% returns in H1 2024 by investing in deeply discounted opportunities in Argentina and Turkey while avoiding overvalued mega-cap Tech. The unconstrained value approach generated strong absolute returns and outperformed international benchmarks despite Growth stock dominance. Portfolio rich with corporate activity potential and positioned for environment where fundamentals matter more than momentum.
Nov 30 2023	2023 Q4	ARCO, DESP, HMSO.L, NTCO, SPB, TDW, TECK, UCG, WCM.TO, WOOD.L	Banking, Buybacks, Corporate Activity, energy, global, inflation, Latin America, value	-	Moerus Worldwide Value Fund delivered strong 16.79% returns in 2023 despite headwinds for value investing, driven by offshore energy services recovery, improving Latin American sentiment, and extensive corporate activity across holdings. The manager maintains conviction in deeply discounted, asset-rich companies while avoiding expensive mega-cap growth stocks, positioning for a potential value factor renaissance.
May 31 2023	2023 Q2	AKER.OL, AUY, CCO, CFX.TO, CMW.AX, DESP, IPCO.TO, ITUB, JEF, LATAM, NN.AS, NTCO3.SA, NTR, PCAR3.SA, SPB, STAN.L, TDW, TECK, UCG.MI, WED.TO	Banking, Buybacks, energy, growth, inflation, Latin America, technology, value	-	Moerus delivered positive returns despite Growth stock dominance by avoiding expensive mega-cap names and focusing on undervalued opportunities. Financial Services and select Energy holdings drove performance while Latin America provided new investment opportunities. Manager expects structural inflation pressures to favor fundamental analysis over growth stories, positioning the Fund's disciplined value approach for outperformance.
Dec 31 2022	2022 Q4	ARCO, BRX, DESP, EMAAR UH, GIVPY, IPCO CN, SPB, TDW, YRI SW	-	-
May 31 2022	2022 Q2	ARCO, CIB, CRE LN, IDFCFB IN, IPCO CN, ITAUCL CI, STAN LN, TDW	-	-
Feb 5 2022	2021 Q4	500530.BO, 8303.T, AKER.OL, BRPR3.SA, CAMECO.TO, CFX, CMW.AX, DESP, EMAAR.DU, GRUPOSURA.BO, IPCO.ST, JEF, PCAR3.SA, S68.SI, SPB	emerging markets, energy, Event-Driven, financials, Latin America, undervalued, uranium, value	-	Moerus Worldwide Value Fund returned 18.2% in 2021, driven by uranium leader Cameco and event-driven value creation across multiple holdings. Latin American investments lagged on political uncertainty, creating new opportunities. With portfolio trading at 0.72x book value versus benchmark's 3.00x, the fund remains positioned in undervalued, out-of-favor areas for long-term outperformance.
Feb 5 2021	2020 Q4	AKER.OL, ARCO, CPA, DESP, EXOR.MI, HMN.L, IDFCFIRSTB.NS, JEF, MDRG.TO, NN.AS, SPB, STAN.L, STC.SI, TDW, WED.TO	COVID-19, discount, emerging markets, financials, Holdings, Recovery, value	-	Moerus Value Fund declined 11% in 2020 versus benchmark's 15% gain due to COVID-19's impact on value stocks. Strong second-half recovery of 31% followed first-half decline of 32%. Manager capitalized on dislocations to add six new positions. Portfolio trades at significant discount to benchmark with 0.69x price-to-book ratio, positioning for long-term outperformance as value-growth gap narrows.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Aug 13 2026

2026 Q2

AKRBF, BRBY.L, CNHI, DC.TO, DOUG, EXOR.MI, GGAL, GRFRF, IPCO, LICI.NS, NTCO, SMGZY, TATACHEM.NS, TDW, TPK.L, VAL, WPM

Consolidation, contrarian, deep value, energy, international, long-term, Precious Metals, value

Moerus returned 5.37% in H1 2026, lagging AI-driven benchmarks but outperforming over longer periods. Energy holdings led gains from Iran conflict while precious metals declined. Manager actively avoids overvalued tech, instead finding opportunities in UK homebuilding, ag equipment, and Indian financials at significant discounts. Extreme market bifurcation between hot AI stocks and unloved sectors creates fertile hunting ground for deep value approach.

May 4 2026

2026 Q1

AKER.OL, IPCO-TO, NATU3.SA, TDW, VAL

energy, Geopolitical, international, Offshore Drilling, oil, value, volatility

VAL
NATU3.SA
IPCO.TO
TDW
AKER.OL

Moerus Worldwide Fund delivered strong Q1 performance through value-driven corporate activity and energy exposure during Middle East conflict. The fund's price-conscious approach targets discounted, out-of-favor investments that attract strategic buyers or benefit from market revaluation. Management views current volatility as opportunity, maintaining long-term focus while adding to positions weakened by geopolitical concerns.

Jan 30 2026

2025 Q4

1200.HK, CMW.AX, DC.TO, DOUG, EXOR.MI, JEF, JSE.L, LTM, NTCO3.SA, STAN.L, TARS, TSGYO.IS, VAL, VALT.L, WED.TO

Banking, contrarian, emerging markets, international, Mining, Recovery, value, volatility

Moerus delivered strong Q4 returns through contrarian value investing in deeply discounted opportunities where pessimistic expectations created upside potential. Top performers included Valterra Platinum, Midland Holdings, and LATAM Airlines, all purchased when sentiment was dire. The manager believes ongoing volatility from geopolitical and trade uncertainties will continue providing attractive long-term buying opportunities for patient investors focused on fundamental values.

Aug 7 2025

2025 Q2

0388.HK, 1200.HK, 1821.HK, BBDO, CBD, CCO, CPA, CS.TO, DC.TO, DESP, DOUG, EDELWEISS.NS, EFX.TO, FIH.TO, GGAL, TDW, TPK.L, UCG.MI, VAL, WPM

Brazil, Hong Kong, international, Offshore Drilling, Precious Metals, tariffs, value, volatility

BBD
TPK LN
VAL
TDW

Moerus Worldwide Value Fund delivered strong 20.21% first-half returns by capitalizing on tariff-induced volatility to acquire depressed international value opportunities. Precious metals and offshore drilling holdings drove performance while new positions in Brazilian banking and Hong Kong real estate reflect contrarian positioning in unloved markets trading at significant discounts to intrinsic value.

Dec 31 2024

2024 Q4

0388.HK, 1821.HK, 1910.HK, AAL.L, ARCO, BAJAJHLDNG.NS, BMA, CBD, DESP, DGX, EFX.TO, GGAL, IDFCFIRSTB.NS, JEF, MEG.TO, NTCO, STAN.L, TID, TSGYO.IS, UCG.MI

Argentina, Banking, contrarian, fundamentals, Hong Kong, international, Turkey, value

Moerus Worldwide Value Fund delivered strong 2024 performance by capitalizing on distressed opportunities in Argentina and Turkey while avoiding overvalued U.S. mega-cap tech stocks. The unconstrained global approach enabled investments in quality businesses at exceptional valuations during periods of macro chaos, with early economic improvements driving significant outperformance versus international benchmarks.

Jun 30 2024

2024 Q2

0388.HK, ARCO, BSBR, CWP.AX, DESP, DOUG, EXO.MI, GGAL, HMSO.L, IPCO, JEF, MEG.TO, NTCO, PCAR3.SA, SPB, STAN.L, STNG, TDW, TECK, TSGYO.IS, UCG.MI, WED.TO

Argentina, Corporate Activity, emerging markets, real estate, Turkey, value

Moerus delivered 7.90% returns in H1 2024 by investing in deeply discounted opportunities in Argentina and Turkey while avoiding overvalued mega-cap Tech. The unconstrained value approach generated strong absolute returns and outperformed international benchmarks despite Growth stock dominance. Portfolio rich with corporate activity potential and positioned for environment where fundamentals matter more than momentum.

Nov 30 2023

2023 Q4

ARCO, DESP, HMSO.L, NTCO, SPB, TDW, TECK, UCG, WCM.TO, WOOD.L

Banking, Buybacks, Corporate Activity, energy, global, inflation, Latin America, value

Moerus Worldwide Value Fund delivered strong 16.79% returns in 2023 despite headwinds for value investing, driven by offshore energy services recovery, improving Latin American sentiment, and extensive corporate activity across holdings. The manager maintains conviction in deeply discounted, asset-rich companies while avoiding expensive mega-cap growth stocks, positioning for a potential value factor renaissance.

May 31 2023

2023 Q2

AKER.OL, AUY, CCO, CFX.TO, CMW.AX, DESP, IPCO.TO, ITUB, JEF, LATAM, NN.AS, NTCO3.SA, NTR, PCAR3.SA, SPB, STAN.L, TDW, TECK, UCG.MI, WED.TO

Banking, Buybacks, energy, growth, inflation, Latin America, technology, value

Moerus delivered positive returns despite Growth stock dominance by avoiding expensive mega-cap names and focusing on undervalued opportunities. Financial Services and select Energy holdings drove performance while Latin America provided new investment opportunities. Manager expects structural inflation pressures to favor fundamental analysis over growth stories, positioning the Fund's disciplined value approach for outperformance.

Dec 31 2022

2022 Q4

ARCO, BRX, DESP, EMAAR UH, GIVPY, IPCO CN, SPB, TDW, YRI SW

May 31 2022

2022 Q2

ARCO, CIB, CRE LN, IDFCFB IN, IPCO CN, ITAUCL CI, STAN LN, TDW

Feb 5 2022

2021 Q4

500530.BO, 8303.T, AKER.OL, BRPR3.SA, CAMECO.TO, CFX, CMW.AX, DESP, EMAAR.DU, GRUPOSURA.BO, IPCO.ST, JEF, PCAR3.SA, S68.SI, SPB

emerging markets, energy, Event-Driven, financials, Latin America, undervalued, uranium, value

Moerus Worldwide Value Fund returned 18.2% in 2021, driven by uranium leader Cameco and event-driven value creation across multiple holdings. Latin American investments lagged on political uncertainty, creating new opportunities. With portfolio trading at 0.72x book value versus benchmark's 3.00x, the fund remains positioned in undervalued, out-of-favor areas for long-term outperformance.

Feb 5 2021

2020 Q4

AKER.OL, ARCO, CPA, DESP, EXOR.MI, HMN.L, IDFCFIRSTB.NS, JEF, MDRG.TO, NN.AS, SPB, STAN.L, STC.SI, TDW, WED.TO

COVID-19, discount, emerging markets, financials, Holdings, Recovery, value

Moerus Value Fund declined 11% in 2020 versus benchmark's 15% gain due to COVID-19's impact on value stocks. Strong second-half recovery of 31% followed first-half decline of 32%. Manager capitalized on dislocations to add six new positions. Portfolio trades at significant discount to benchmark with 0.69x price-to-book ratio, positioning for long-term outperformance as value-growth gap narrows.

QUARTER	THEMES	TAGS
2026 Q2	AI Manager actively avoids AI-related stocks due to excessive valuations and downside price risk. Believes the sector is priced for perfection despite an imperfect world, with lofty expectations that may not be met. Draws parallels to the dot-com bubble, noting that even successful businesses can be poor investments if purchased at excessive prices.	Semiconductors Technology Valuations Bubble Risk
	Energy Energy holdings were the largest contributor to H1 performance, benefiting from the Iran conflict and oil price surge. Portfolio includes offshore drilling services, Canadian oil producers, and Norwegian holding companies. Manager emphasizes these are well-managed businesses positioned to create enduring shareholder value across a range of oil prices, not commodity price bets.	Oil Offshore Drilling Energy Services Consolidation Iran
	Precious Metals Precious metals holdings declined in Q2 due to inflation concerns, higher interest rate expectations, and stronger dollar. Manager remains focused on company-specific value creation rather than near-term commodity price movements. Believes fiscal deficits and out-of-control spending support long-term precious metals thesis.	Gold Platinum Silver Mining Inflation
	Value Manager maintains disciplined deep value approach despite decade of headwinds from Growth stock outperformance. Emphasizes investing in depressed, out-of-favor businesses at discounted prices with long-term horizon. Notes reduction in competing value investors creates favorable environment going forward.	Deep Value Contrarian Long-term Discount Patience
	Homebuilders Initiated position in Barratt Redrow, UK's largest housebuilder, at roughly 60% of tangible book value. Despite near-term challenges from high mortgage rates and weak consumer sentiment, manager sees attractive long-term fundamentals driven by UK housing shortage of 4 to 6.5 million homes and government target of 300,000 annual completions.	UK Housing Real Estate Discount Government Policy
	Ag Equipment Initiated position in CNH Industrial, second-largest agricultural equipment manufacturer. North American farmers face financial strain from higher rates, trade war uncertainty, and compressed margins. Manager sees attractive entry point in consolidated oligopoly with strong balance sheet, controlled by Exor, positioned to benefit from eventual replacement cycle.	Agriculture Machinery Consolidation Cycle Exor
	India Added two new Indian positions during Q2 volatility driven by Iran war and AI disruption fears. Invested in Life Insurance Corporation of India at 30%+ discount to embedded value and Tata Chemicals with hidden value in Tata Sons stake. Manager views this as rare, fleeting opportunity in typically expensive market.	Life Insurance Chemicals Discount Hidden Value Emerging Markets
	Consolidation Manager highlights consolidation as key value driver across multiple holdings. Offshore drilling industry consolidated into four dominant players bringing supply discipline. Portfolio companies like Tidewater and International Petroleum have grown shareholder value through opportunistic acquisitions of distressed assets at deep discounts during industry depressions.	M&A Market Share Pricing Power Distressed Assets Scale
2026 Q1	Oil The fund's energy holdings, including offshore drilling services and oil producers, were major performance contributors in Q1 as war in the Persian Gulf drove oil prices higher. These investments were made based on attractive valuations in a chronically underinvested sector, not commodity price predictions.	Oil Energy Offshore Drilling Persian Gulf Commodities
	Value The fund maintains its price-conscious approach, seeking out-of-favor investments trading at discounted valuations. This strategy has historically benefited from corporate activity as depressed valuations attract strategic and financial buyers looking past current market sentiment.	Value Discounted Valuations Corporate Activity Takeovers
	Volatility The manager views heightened market volatility as an opportunity rather than a threat, believing it creates attractive buying opportunities for patient, long-term investors. Volatility forces short-term focused investors to sell at discounted prices that may not reflect fundamental values.	Volatility Market Turmoil Buying Opportunities Long-term
	Geopolitical The Iran conflict and closure of the Strait of Hormuz created significant market disruption, affecting commodity prices and economic activity. The manager acknowledges the unpredictability of geopolitical events but focuses on taking advantage of resulting market opportunities.	Iran Geopolitical Strait of Hormuz Middle East
2025 Q4	AI Manager draws parallels between today's AI-driven environment and the 2014-15 oil collapse, warning that AI has become a macroeconomic assumption embedded in capital expenditure plans and valuations. Notes AI infrastructure is profoundly energy-intensive with rising electricity costs and grid constraints challenging assumptions of frictionless scalability.	Artificial Intelligence Data Centers Energy Infrastructure Valuations Technology
	Energy Discusses energy constraints as a key risk to AI infrastructure economics, with electricity prices rising sharply in data-center-heavy regions and utilities facing mounting challenges in expanding capacity. Views energy as a signal rather than just an input cost, drawing lessons from the 2014-15 oil collapse.	Electricity Grid Infrastructure Power Pricing Utilities Data Centers
	Valuations Expresses concern about AI-exposed companies trading at multiples that assume near-flawless execution. Notes that while many AI leaders are profitable unlike the dot-com era, this doesn't eliminate valuation risk or prevent multiple compression if expectations shift.	Multiples Expectations Risk Compression
2025 Q2	Value Fund focuses on investing in depressed and unpopular businesses at attractive prices, seeking opportunities where low expectations are priced in. Manager emphasizes buying quality businesses at unusually depressed valuations when skies seem darkest.	Valuation Contrarian Discount Undervalued Beaten-down
	Gold Precious metals holdings were the most significant performance driver, with gold-related assets surging amid tariff volatility, geopolitical turmoil, weakening dollar, and growing US fiscal concerns. Holdings include companies providing financing to mining companies during capital access challenges.	Precious metals Safe haven Mining finance Dollar weakness
	Trade Policy Trump administration tariff announcements created significant market volatility throughout the period, with initial draconian measures in April causing sell-offs, followed by partial walk-backs and ongoing uncertainty about ultimate outcomes and implementation.	Tariffs Trade war Volatility Policy uncertainty
	Offshore Drilling Added Valaris and re-initiated Tidewater positions in offshore drilling sector. Industry has undergone dramatic consolidation since 2019, bringing supply discipline. Tightening supply-demand dynamics leading to recovery in utilization and day rates from previously depressed levels.	Consolidation Supply discipline Utilization Day rates
	Brazil Initiated position in Banco Bradesco amid severely depressed Brazilian market sentiment due to political intervention concerns and currency depreciation. Brazilian banking industry offers attractive concentrated structure and battle-tested management from navigating macroeconomic volatility.	Currency depreciation Political risk Banking concentration Interest rates
	Hong Kong Added Hong Kong Exchanges & Clearing and Midland Holdings positions. Hong Kong market suffered from protracted decline in investor interest due to protests, National Security Law, COVID lockdowns, and economic challenges, creating opportunities in quality businesses at depressed valuations.	Market decline Political uncertainty Property market Exchange monopoly
2024 Q4	Argentina Three of the Fund's five largest positive contributors came from Argentina, including Grupo Financiero Galicia, Despegar.com, and Banco Macro. The manager built positions in Argentine banks at discounted prices reflecting extreme pessimism from macro chaos, believing they were well-positioned as international players fled the market. Early signs of improvement under the Milei administration, including fiscal surplus and deceleration in inflation, drove strong performance.	Banking Currency Inflation Politics Recovery
	Turkey Türkiye Sigorta was the fifth-largest contributor to performance, benefiting from dramatic improvement in profitability due to increased insurance pricing and improved investment portfolio returns as the Turkish Central Bank raised interest rates significantly. The manager invested in what they believed was a high-quality business at an unusually attractive valuation during extreme economic adversity.	Insurance Inflation Interest Rates Profitability Valuation
	Hong Kong The Fund initiated three new positions listed in Hong Kong: HKEX, ESR Group, and Samsonite. The manager noted that Hong Kong had fallen out of favor spectacularly with investors, creating opportunities at attractive prices for businesses that happened to be listed in the wrong place at the wrong time. This contrasts with the prior era when companies flocked to Hong Kong for premium valuations.	Valuation Sentiment Listings Opportunity Contrarian
	Value The manager emphasizes their focus on valuation, fundamentals, and price-consciousness, avoiding mega-cap Growth stocks due to excessive price risk. They believe valuation still matters and seek businesses trading at discounted valuations that price in adversity rather than perfection. The Fund's approach involves taking advantage of near-term uncertainty by investing in depressed and unpopular businesses at attractive prices.	Valuation Fundamentals Contrarian Price Risk Opportunity
	Brazil Brazil was the largest detractor from Fund performance, driven by declines in CBD and Natura & Co, adversely impacted by negative investor sentiment towards the Brazilian equity market and currency weakness. The manager believes current negative sentiment stems from concerns about political intervention and increased government spending, creating bottom-up investment opportunities for long-term investors.	Politics Currency Sentiment Opportunity Government
2024 Q2	Argentina Argentina-based investments were the largest positive contributor to performance, led by Grupo Financiero Galicia and Despegar.com. The manager built positions during extreme economic chaos including currency devaluation and 200%+ inflation, viewing this as a rare opportunity similar to the early 2000s crisis. Recent encouraging signs include deceleration in inflation and fiscal surpluses under the Milei administration.	Banking Currency Inflation Economic Crisis Recovery
	Turkey Türkiye Sigorta was the second-largest contributor to performance, benefiting from dramatic improvement in profitability due to increased insurance pricing and improved investment returns as the Turkish Central Bank raised rates significantly. The manager invested during a period of capital flight and unorthodox economic policies, viewing it as an attractive long-term opportunity in an underpenetrated insurance market.	Insurance Interest Rates Profitability Emerging Markets
	Travel Despegar.com, the largest Online Travel Agency in Latin America, continued strong performance building on 2023 gains amid accelerating recovery in travel activity from pandemic depths. The company benefited from post-pandemic demand recovery, cost reductions, and industry consolidation that strengthened its market position across Latin America.	Online Travel Recovery Latin America Consolidation
	Oil Tidewater was a leading performer before being sold, and MEG Energy was added as a new position. The manager sees MEG Energy entering a transformational period with significant free cash flow generation potential as debt reaches sustainable levels and the company can focus on shareholder returns after years of capital-intensive development.	Offshore Services Oil Sands Free Cash Flow Capital Returns
	Commercial Real Estate Real Estate holdings detracted from performance due to higher interest rate environment pressuring asset values and investor sentiment. However, the manager believes these holdings are well-financed and trade at unusually attractive valuations, with sector-wide volatility potentially providing attractive longer-term opportunities as quality assets become oversold.	Interest Rates Valuations Distressed Opportunity
	Buybacks Numerous Fund holdings continued repurchasing shares at attractive valuations, including recently sold positions Tidewater and Spectrum Brands. Share repurchases often coincided with asset sales at better valuations, creating value through capital allocation arbitrage between public market discounts and private market transactions.	Share Repurchases Capital Allocation Discounts Value Creation
2023 Q4	Value Fund focuses on undervalued, asset-rich companies trading at discounted valuations. Manager emphasizes investing in depressed and unpopular businesses at attractive prices, avoiding mega-cap Growth stocks due to excessive price risk and stretched valuations.	Undervalued Discounted Asset-rich Price risk Fundamentals
	Latin America Region provided most meaningful positive contribution to performance as investor sentiment improved. Policymakers began cutting interest rates after aggressive inflation-fighting campaigns, and political risks subsided as actual events proved less concerning than feared.	Brazil Chile Colombia Interest rates Political risk
	Buybacks Multiple Fund holdings repurchased shares at discounts to NAV, creating value for remaining shareholders. Manager views share buybacks as potentially value-accretive when done by well-financed companies at attractive prices without imprudent leverage.	Share repurchases NAV discount Value creation Capital allocation
	Oil Services Tidewater was largest positive contributor as offshore support vessel market tightened meaningfully with improved supply/demand balance. Company benefited from strong financial position to make acquisitions from distressed sellers at attractive prices.	Offshore drilling Vessel supply Acquisitions Industry recovery
	Travel Despegar.com performed well amid ongoing recovery in Latin American travel demand from pandemic depths. Gross bookings up meaningfully with record quarterly revenues and improved profitability from cost reductions and market consolidation.	Online travel Recovery Market share Consolidation
	Inflation Manager expects future inflation to remain higher than post-GFC era due to monetary expansion, fiscal stimulus, underinvestment in natural resources, and geopolitical conflicts. Believes this environment favors security selection and fundamentals over growth stocks.	Monetary policy Fiscal spending Geopolitical risk Commodity supply
2023 Q2	Value Fund focuses on investing in depressed and unpopular businesses at attractive prices, avoiding popular mega-cap Growth stocks due to excessive valuations. Manager believes valuation and fundamentals will ultimately matter more in determining investment outcomes going forward.	Valuation Fundamentals Price Risk Discount
	Banking Financial Services sector was the largest positive contributor to Fund performance despite banking turmoil. Fund owns well-capitalized banks in Chile, Colombia, India, Italy, and UK that avoided the specific circumstances affecting US regional banks.	Regional Banks Capital Deposits Interest Rates
	Energy Mixed performance in Energy holdings with Tidewater leading gains while oil producers declined on recession concerns. Offshore supply vessel industry approaching inflection point after seven-year depression as supply/demand balance tightens.	Offshore Oil Services Commodity Prices Supply Demand
	Buybacks Multiple portfolio companies engaged in substantial share repurchase programs including UniCredit, Spectrum Brands, and Nutrien. Manager views buybacks at discounted valuations as value accretive to shareholders over the long run.	Share Repurchase Capital Return Discount Value Creation
	Latin America Region continues to be source of opportunity with meaningful positive contribution to performance. Manager found attractive long-term investment opportunities due to pandemic-related uncertainty that weighed on local equity markets and currencies.	Currency Sentiment Recovery Undervalued
	Inflation Manager believes inflation will likely remain higher than recent past due to massive stimulus, government intervention, and reversal of globalization trends. This environment expected to favor security selection and fundamentals over growth stories.	Monetary Policy Fiscal Stimulus Globalization Interest Rates
2021 Q4	Value Fund focuses on investing in depressed and unpopular businesses at attractive prices with long-term time horizon. Portfolio consists of investments in most disliked, discounted areas like Financials, Natural Resources, and Emerging Markets. Fund's P/B ratio of 0.72x versus benchmark's 3.00x demonstrates extreme valuation disparity.	Undervalued Discount Intrinsic Value Margin of Safety Contrarian
	Emerging markets Fund has significant exposure to emerging markets, particularly Latin America, which lagged in 2021 due to pandemic, political, and macroeconomic uncertainty. Manager sees this as creating attractive opportunities for long-term investors despite current challenges.	Latin America Brazil Colombia Political Risk Currency
	Energy Energy-related holdings were second-largest contributor to performance in 2021, led by Cameco Corp and Aker ASA. Uranium market fundamentals improving with strengthening prices and better supply/demand balance. Oil recovery from pandemic lows drove strong performance.	Uranium Oil Cameco Nuclear Commodities
	Uranium Uranium had been much-hated commodity for past decade but fundamentals are attractive with improving market balance. Uranium prices strengthened meaningfully from depressed levels. Market sentiment improving due to potential role in low-carbon power generation transition.	Nuclear Cameco Supply Demand Energy Transition Commodity
	Commercial Real Estate BR Properties, Brazilian commercial real estate holding, saw stock price languish despite selling properties at premiums to carrying values. Company trading at over 50% discount to tangible book value while repurchasing shares at discounted prices.	Brazil REITs Property Discount Share Buybacks
	Travel Despegar.com, largest online travel agency in Latin America, saw share price slump amid COVID-related fears. Company has strong financial position with over $260 million net cash and acquired Best Day Travel Group at modest valuation during pandemic.	Online Travel Latin America COVID Impact Market Share Consolidation
2020 Q4	Value Fund focuses on investing in depressed and unpopular businesses at attractive prices. Portfolio trades at 0.69x price-to-book versus 2.64x for MSCI ACWI benchmark. Manager believes current bifurcated market provides attractive investment opportunities in discounted areas.	Discount Undervalued Contrarian Fundamentals Book Value
	Financials Financial Services holdings were most significant detractor in first half but became most material positive contributor in second half. Manager believes well-capitalized holdings remain significantly undervalued and positioned to benefit from resumption of capital distributions as regulatory restrictions ease.	Banks Insurance Capital Dividends Regulation
	Emerging markets Fund has significant exposure to Latin American and Asian markets including new position in Indian holding company Bajaj Holdings. Manager sees attractive long-term growth opportunities despite near-term challenges from COVID-19 and currency volatility.	India Brazil Latin America Growth Currency
	Travel Holdings like Arcos Dorados and Copa Holdings were severely impacted by pandemic lockdowns but showing recovery. Manager believes well-run survivors like Copa are positioned to benefit as conditions normalize and weaker competitors have been eliminated.	Airlines Restaurants Recovery Competition Lockdowns
	Commercial Real Estate Hammerson plc suffered from pandemic-related lockdowns affecting shopping malls but completed rights issue raising £825 million to strengthen balance sheet. Shares trade at 75% discount to EPRA NAV despite fortified financial position.	REITs Malls Retail Discount Balance Sheet

QUARTER

THEMES

AI

Manager actively avoids AI-related stocks due to excessive valuations and downside price risk. Believes the sector is priced for perfection despite an imperfect world, with lofty expectations that may not be met. Draws parallels to the dot-com bubble, noting that even successful businesses can be poor investments if purchased at excessive prices.

Semiconductors Technology Valuations Bubble Risk

Energy

Energy holdings were the largest contributor to H1 performance, benefiting from the Iran conflict and oil price surge. Portfolio includes offshore drilling services, Canadian oil producers, and Norwegian holding companies. Manager emphasizes these are well-managed businesses positioned to create enduring shareholder value across a range of oil prices, not commodity price bets.

Oil Offshore Drilling Energy Services Consolidation Iran

Precious Metals

Precious metals holdings declined in Q2 due to inflation concerns, higher interest rate expectations, and stronger dollar. Manager remains focused on company-specific value creation rather than near-term commodity price movements. Believes fiscal deficits and out-of-control spending support long-term precious metals thesis.

Gold Platinum Silver Mining Inflation

Value

Manager maintains disciplined deep value approach despite decade of headwinds from Growth stock outperformance. Emphasizes investing in depressed, out-of-favor businesses at discounted prices with long-term horizon. Notes reduction in competing value investors creates favorable environment going forward.

Deep Value Contrarian Long-term Discount Patience

Homebuilders

Initiated position in Barratt Redrow, UK's largest housebuilder, at roughly 60% of tangible book value. Despite near-term challenges from high mortgage rates and weak consumer sentiment, manager sees attractive long-term fundamentals driven by UK housing shortage of 4 to 6.5 million homes and government target of 300,000 annual completions.

UK Housing Real Estate Discount Government Policy

Ag Equipment

Initiated position in CNH Industrial, second-largest agricultural equipment manufacturer. North American farmers face financial strain from higher rates, trade war uncertainty, and compressed margins. Manager sees attractive entry point in consolidated oligopoly with strong balance sheet, controlled by Exor, positioned to benefit from eventual replacement cycle.

Agriculture Machinery Consolidation Cycle Exor

India

Added two new Indian positions during Q2 volatility driven by Iran war and AI disruption fears. Invested in Life Insurance Corporation of India at 30%+ discount to embedded value and Tata Chemicals with hidden value in Tata Sons stake. Manager views this as rare, fleeting opportunity in typically expensive market.

Life Insurance Chemicals Discount Hidden Value Emerging Markets

Consolidation

Manager highlights consolidation as key value driver across multiple holdings. Offshore drilling industry consolidated into four dominant players bringing supply discipline. Portfolio companies like Tidewater and International Petroleum have grown shareholder value through opportunistic acquisitions of distressed assets at deep discounts during industry depressions.

M&A Market Share Pricing Power Distressed Assets Scale

2026 Q1

Oil

The fund's energy holdings, including offshore drilling services and oil producers, were major performance contributors in Q1 as war in the Persian Gulf drove oil prices higher. These investments were made based on attractive valuations in a chronically underinvested sector, not commodity price predictions.

Oil Energy Offshore Drilling Persian Gulf Commodities

Value

The fund maintains its price-conscious approach, seeking out-of-favor investments trading at discounted valuations. This strategy has historically benefited from corporate activity as depressed valuations attract strategic and financial buyers looking past current market sentiment.

Value Discounted Valuations Corporate Activity Takeovers

Volatility

The manager views heightened market volatility as an opportunity rather than a threat, believing it creates attractive buying opportunities for patient, long-term investors. Volatility forces short-term focused investors to sell at discounted prices that may not reflect fundamental values.

Volatility Market Turmoil Buying Opportunities Long-term

Geopolitical

The Iran conflict and closure of the Strait of Hormuz created significant market disruption, affecting commodity prices and economic activity. The manager acknowledges the unpredictability of geopolitical events but focuses on taking advantage of resulting market opportunities.

Iran Geopolitical Strait of Hormuz Middle East

2025 Q4

AI

Manager draws parallels between today's AI-driven environment and the 2014-15 oil collapse, warning that AI has become a macroeconomic assumption embedded in capital expenditure plans and valuations. Notes AI infrastructure is profoundly energy-intensive with rising electricity costs and grid constraints challenging assumptions of frictionless scalability.

Artificial Intelligence Data Centers Energy Infrastructure Valuations Technology

Energy

Discusses energy constraints as a key risk to AI infrastructure economics, with electricity prices rising sharply in data-center-heavy regions and utilities facing mounting challenges in expanding capacity. Views energy as a signal rather than just an input cost, drawing lessons from the 2014-15 oil collapse.

Electricity Grid Infrastructure Power Pricing Utilities Data Centers

Valuations

Expresses concern about AI-exposed companies trading at multiples that assume near-flawless execution. Notes that while many AI leaders are profitable unlike the dot-com era, this doesn't eliminate valuation risk or prevent multiple compression if expectations shift.

Multiples Expectations Risk Compression

2025 Q2

Value

Fund focuses on investing in depressed and unpopular businesses at attractive prices, seeking opportunities where low expectations are priced in. Manager emphasizes buying quality businesses at unusually depressed valuations when skies seem darkest.

Valuation Contrarian Discount Undervalued Beaten-down

Gold

Precious metals holdings were the most significant performance driver, with gold-related assets surging amid tariff volatility, geopolitical turmoil, weakening dollar, and growing US fiscal concerns. Holdings include companies providing financing to mining companies during capital access challenges.

Precious metals Safe haven Mining finance Dollar weakness

Trade Policy

Trump administration tariff announcements created significant market volatility throughout the period, with initial draconian measures in April causing sell-offs, followed by partial walk-backs and ongoing uncertainty about ultimate outcomes and implementation.

Tariffs Trade war Volatility Policy uncertainty

Offshore Drilling

Added Valaris and re-initiated Tidewater positions in offshore drilling sector. Industry has undergone dramatic consolidation since 2019, bringing supply discipline. Tightening supply-demand dynamics leading to recovery in utilization and day rates from previously depressed levels.

Consolidation Supply discipline Utilization Day rates

Brazil

Initiated position in Banco Bradesco amid severely depressed Brazilian market sentiment due to political intervention concerns and currency depreciation. Brazilian banking industry offers attractive concentrated structure and battle-tested management from navigating macroeconomic volatility.

Currency depreciation Political risk Banking concentration Interest rates

Hong Kong

Added Hong Kong Exchanges & Clearing and Midland Holdings positions. Hong Kong market suffered from protracted decline in investor interest due to protests, National Security Law, COVID lockdowns, and economic challenges, creating opportunities in quality businesses at depressed valuations.

Market decline Political uncertainty Property market Exchange monopoly

2024 Q4

Argentina

Three of the Fund's five largest positive contributors came from Argentina, including Grupo Financiero Galicia, Despegar.com, and Banco Macro. The manager built positions in Argentine banks at discounted prices reflecting extreme pessimism from macro chaos, believing they were well-positioned as international players fled the market. Early signs of improvement under the Milei administration, including fiscal surplus and deceleration in inflation, drove strong performance.

Banking Currency Inflation Politics Recovery

Turkey

Türkiye Sigorta was the fifth-largest contributor to performance, benefiting from dramatic improvement in profitability due to increased insurance pricing and improved investment portfolio returns as the Turkish Central Bank raised interest rates significantly. The manager invested in what they believed was a high-quality business at an unusually attractive valuation during extreme economic adversity.

Insurance Inflation Interest Rates Profitability Valuation

Hong Kong

The Fund initiated three new positions listed in Hong Kong: HKEX, ESR Group, and Samsonite. The manager noted that Hong Kong had fallen out of favor spectacularly with investors, creating opportunities at attractive prices for businesses that happened to be listed in the wrong place at the wrong time. This contrasts with the prior era when companies flocked to Hong Kong for premium valuations.

Valuation Sentiment Listings Opportunity Contrarian

Value

The manager emphasizes their focus on valuation, fundamentals, and price-consciousness, avoiding mega-cap Growth stocks due to excessive price risk. They believe valuation still matters and seek businesses trading at discounted valuations that price in adversity rather than perfection. The Fund's approach involves taking advantage of near-term uncertainty by investing in depressed and unpopular businesses at attractive prices.

Valuation Fundamentals Contrarian Price Risk Opportunity

Brazil

Brazil was the largest detractor from Fund performance, driven by declines in CBD and Natura & Co, adversely impacted by negative investor sentiment towards the Brazilian equity market and currency weakness. The manager believes current negative sentiment stems from concerns about political intervention and increased government spending, creating bottom-up investment opportunities for long-term investors.

Politics Currency Sentiment Opportunity Government

2024 Q2

Argentina

Argentina-based investments were the largest positive contributor to performance, led by Grupo Financiero Galicia and Despegar.com. The manager built positions during extreme economic chaos including currency devaluation and 200%+ inflation, viewing this as a rare opportunity similar to the early 2000s crisis. Recent encouraging signs include deceleration in inflation and fiscal surpluses under the Milei administration.

Banking Currency Inflation Economic Crisis Recovery

Turkey

Türkiye Sigorta was the second-largest contributor to performance, benefiting from dramatic improvement in profitability due to increased insurance pricing and improved investment returns as the Turkish Central Bank raised rates significantly. The manager invested during a period of capital flight and unorthodox economic policies, viewing it as an attractive long-term opportunity in an underpenetrated insurance market.

Insurance Interest Rates Profitability Emerging Markets

Travel

Despegar.com, the largest Online Travel Agency in Latin America, continued strong performance building on 2023 gains amid accelerating recovery in travel activity from pandemic depths. The company benefited from post-pandemic demand recovery, cost reductions, and industry consolidation that strengthened its market position across Latin America.

Online Travel Recovery Latin America Consolidation

Oil

Tidewater was a leading performer before being sold, and MEG Energy was added as a new position. The manager sees MEG Energy entering a transformational period with significant free cash flow generation potential as debt reaches sustainable levels and the company can focus on shareholder returns after years of capital-intensive development.

Offshore Services Oil Sands Free Cash Flow Capital Returns

Commercial Real Estate

Real Estate holdings detracted from performance due to higher interest rate environment pressuring asset values and investor sentiment. However, the manager believes these holdings are well-financed and trade at unusually attractive valuations, with sector-wide volatility potentially providing attractive longer-term opportunities as quality assets become oversold.

Interest Rates Valuations Distressed Opportunity

Buybacks

Numerous Fund holdings continued repurchasing shares at attractive valuations, including recently sold positions Tidewater and Spectrum Brands. Share repurchases often coincided with asset sales at better valuations, creating value through capital allocation arbitrage between public market discounts and private market transactions.

Share Repurchases Capital Allocation Discounts Value Creation

2023 Q4

Value

Fund focuses on undervalued, asset-rich companies trading at discounted valuations. Manager emphasizes investing in depressed and unpopular businesses at attractive prices, avoiding mega-cap Growth stocks due to excessive price risk and stretched valuations.

Undervalued Discounted Asset-rich Price risk Fundamentals

Latin America

Region provided most meaningful positive contribution to performance as investor sentiment improved. Policymakers began cutting interest rates after aggressive inflation-fighting campaigns, and political risks subsided as actual events proved less concerning than feared.

Brazil Chile Colombia Interest rates Political risk

Buybacks

Multiple Fund holdings repurchased shares at discounts to NAV, creating value for remaining shareholders. Manager views share buybacks as potentially value-accretive when done by well-financed companies at attractive prices without imprudent leverage.

Share repurchases NAV discount Value creation Capital allocation

Oil Services

Tidewater was largest positive contributor as offshore support vessel market tightened meaningfully with improved supply/demand balance. Company benefited from strong financial position to make acquisitions from distressed sellers at attractive prices.

Offshore drilling Vessel supply Acquisitions Industry recovery

Travel

Despegar.com performed well amid ongoing recovery in Latin American travel demand from pandemic depths. Gross bookings up meaningfully with record quarterly revenues and improved profitability from cost reductions and market consolidation.

Online travel Recovery Market share Consolidation

Inflation

Manager expects future inflation to remain higher than post-GFC era due to monetary expansion, fiscal stimulus, underinvestment in natural resources, and geopolitical conflicts. Believes this environment favors security selection and fundamentals over growth stocks.

Monetary policy Fiscal spending Geopolitical risk Commodity supply

2023 Q2

Value

Fund focuses on investing in depressed and unpopular businesses at attractive prices, avoiding popular mega-cap Growth stocks due to excessive valuations. Manager believes valuation and fundamentals will ultimately matter more in determining investment outcomes going forward.

Valuation Fundamentals Price Risk Discount

Banking

Financial Services sector was the largest positive contributor to Fund performance despite banking turmoil. Fund owns well-capitalized banks in Chile, Colombia, India, Italy, and UK that avoided the specific circumstances affecting US regional banks.

Regional Banks Capital Deposits Interest Rates

Energy

Mixed performance in Energy holdings with Tidewater leading gains while oil producers declined on recession concerns. Offshore supply vessel industry approaching inflection point after seven-year depression as supply/demand balance tightens.

Offshore Oil Services Commodity Prices Supply Demand

Buybacks

Multiple portfolio companies engaged in substantial share repurchase programs including UniCredit, Spectrum Brands, and Nutrien. Manager views buybacks at discounted valuations as value accretive to shareholders over the long run.

Share Repurchase Capital Return Discount Value Creation

Latin America

Region continues to be source of opportunity with meaningful positive contribution to performance. Manager found attractive long-term investment opportunities due to pandemic-related uncertainty that weighed on local equity markets and currencies.

Currency Sentiment Recovery Undervalued

Inflation

Manager believes inflation will likely remain higher than recent past due to massive stimulus, government intervention, and reversal of globalization trends. This environment expected to favor security selection and fundamentals over growth stories.

Monetary Policy Fiscal Stimulus Globalization Interest Rates

2021 Q4

Value

Fund focuses on investing in depressed and unpopular businesses at attractive prices with long-term time horizon. Portfolio consists of investments in most disliked, discounted areas like Financials, Natural Resources, and Emerging Markets. Fund's P/B ratio of 0.72x versus benchmark's 3.00x demonstrates extreme valuation disparity.

Undervalued Discount Intrinsic Value Margin of Safety Contrarian

Emerging markets

Fund has significant exposure to emerging markets, particularly Latin America, which lagged in 2021 due to pandemic, political, and macroeconomic uncertainty. Manager sees this as creating attractive opportunities for long-term investors despite current challenges.

Latin America Brazil Colombia Political Risk Currency

Energy

Energy-related holdings were second-largest contributor to performance in 2021, led by Cameco Corp and Aker ASA. Uranium market fundamentals improving with strengthening prices and better supply/demand balance. Oil recovery from pandemic lows drove strong performance.

Uranium Oil Cameco Nuclear Commodities

Uranium

Uranium had been much-hated commodity for past decade but fundamentals are attractive with improving market balance. Uranium prices strengthened meaningfully from depressed levels. Market sentiment improving due to potential role in low-carbon power generation transition.

Nuclear Cameco Supply Demand Energy Transition Commodity

Commercial Real Estate

BR Properties, Brazilian commercial real estate holding, saw stock price languish despite selling properties at premiums to carrying values. Company trading at over 50% discount to tangible book value while repurchasing shares at discounted prices.

Brazil REITs Property Discount Share Buybacks

Travel

Despegar.com, largest online travel agency in Latin America, saw share price slump amid COVID-related fears. Company has strong financial position with over $260 million net cash and acquired Best Day Travel Group at modest valuation during pandemic.

Online Travel Latin America COVID Impact Market Share Consolidation

2020 Q4

Value

Fund focuses on investing in depressed and unpopular businesses at attractive prices. Portfolio trades at 0.69x price-to-book versus 2.64x for MSCI ACWI benchmark. Manager believes current bifurcated market provides attractive investment opportunities in discounted areas.

Discount Undervalued Contrarian Fundamentals Book Value

Financials

Financial Services holdings were most significant detractor in first half but became most material positive contributor in second half. Manager believes well-capitalized holdings remain significantly undervalued and positioned to benefit from resumption of capital distributions as regulatory restrictions ease.

Banks Insurance Capital Dividends Regulation

Emerging markets

Fund has significant exposure to Latin American and Asian markets including new position in Indian holding company Bajaj Holdings. Manager sees attractive long-term growth opportunities despite near-term challenges from COVID-19 and currency volatility.

India Brazil Latin America Growth Currency

Travel

Holdings like Arcos Dorados and Copa Holdings were severely impacted by pandemic lockdowns but showing recovery. Manager believes well-run survivors like Copa are positioned to benefit as conditions normalize and weaker competitors have been eliminated.

Airlines Restaurants Recovery Competition Lockdowns

Commercial Real Estate

Hammerson plc suffered from pandemic-related lockdowns affecting shopping malls but completed rights issue raising £825 million to strengthen balance sheet. Shares trade at 75% discount to EPRA NAV despite fortified financial position.

REITs Malls Retail Discount Balance Sheet

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
May 4, 2026	Fund Letters	Moerus Capital Management	VAL	Valaris	Oil & Gas Drilling	Oil & Gas Drilling	Bull	New York Stock Exchange	consolidation, Energy Services, Fleet Assets, M&A, offshore drilling, Oil & Gas, Value	Login
May 4, 2026	Fund Letters	Moerus Capital Management	NATU3.SA	Natura Cosméticos	Household & Personal Products	Personal Products	Bull	Brasil Bolsa Balcão	beauty products, Brazilian Consumer, Emerging markets, Governance, private equity, restructuring, turnaround	Login
May 4, 2026	Fund Letters	Moerus Capital Management	IPCO.TO	International Petroleum Corp	Oil & Gas E&P	Oil & Gas Exploration & Production	Bull	Toronto Stock Exchange	Asset Acquisition, Canadian oil, capital allocation, energy, Geopolitical Safety, Share Buybacks, value creation	Login
May 4, 2026	Fund Letters	Moerus Capital Management	TDW	Tidewater	Oil & Gas Equipment & Services	Oil & Gas Equipment & Services	Bull	New York Stock Exchange	balance sheet, consolidation, Distressed Acquisitions, Energy security, Fleet Upgrade, Marine Vessels, Offshore services	Login
May 4, 2026	Fund Letters	Moerus Capital Management	AKER.OL	Aker ASA	Conglomerates	Oil & Gas Exploration & Production	Bull	-	Aker BP, holding company, industrial assets, Norwegian Energy, Portfolio Management, Strategic Transactions, value creation	Login
Aug 7, 2025	Fund Letters	Amit Wadhwaney	BBD	Banco Bradesco S.A.	Financials	Diversified Banks	Bull	Brasil Bolsa Balcão	banking, Brazil, Cyclicalrecovery, Earningspower, valuation	Login
Aug 7, 2025	Fund Letters	Amit Wadhwaney	TPK LN	Travis Perkins PLC	Industrials	Trading Companies & Distributors	Bull	London Stock Exchange	construction, Housing, Property, recovery, restructuring	Login
Aug 7, 2025	Fund Letters	Amit Wadhwaney	VAL	Valaris Limited	Energy	Oil & Gas Drilling	Bull	New York Stock Exchange	Drilling, energy, Offshore, Supplydemand, turnaround	Login
Aug 7, 2025	Fund Letters	Amit Wadhwaney	TDW	Tidewater Inc.	Energy	Oil & Gas Equipment & Services	Bull	New York Stock Exchange	Cyclicals, energy, Offshore, valuation, Vessels	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

May 4, 2026

Fund Letters

Moerus Capital Management

VAL

Valaris

Oil & Gas Drilling

Bull

New York Stock Exchange

consolidation, Energy Services, Fleet Assets, M&A, offshore drilling, Oil & Gas, Value

May 4, 2026

Fund Letters

Moerus Capital Management

NATU3.SA

Natura Cosméticos

Household & Personal Products

Personal Products

Bull

Brasil Bolsa Balcão

beauty products, Brazilian Consumer, Emerging markets, Governance, private equity, restructuring, turnaround

May 4, 2026

Fund Letters

Moerus Capital Management

IPCO.TO

International Petroleum Corp

Oil & Gas E&P

Oil & Gas Exploration & Production

Bull

Toronto Stock Exchange

Asset Acquisition, Canadian oil, capital allocation, energy, Geopolitical Safety, Share Buybacks, value creation

May 4, 2026

Fund Letters

Moerus Capital Management

TDW

Tidewater

Oil & Gas Equipment & Services

Bull

New York Stock Exchange

balance sheet, consolidation, Distressed Acquisitions, Energy security, Fleet Upgrade, Marine Vessels, Offshore services

May 4, 2026

Fund Letters

Moerus Capital Management

AKER.OL

Aker ASA

Conglomerates

Oil & Gas Exploration & Production

Bull

Aker BP, holding company, industrial assets, Norwegian Energy, Portfolio Management, Strategic Transactions, value creation

Aug 7, 2025

Fund Letters

Amit Wadhwaney

BBD

Banco Bradesco S.A.

Financials

Diversified Banks

Bull

Brasil Bolsa Balcão

banking, Brazil, Cyclicalrecovery, Earningspower, valuation

Aug 7, 2025

Fund Letters

Amit Wadhwaney

TPK LN

Travis Perkins PLC

Industrials

Trading Companies & Distributors

Bull

London Stock Exchange

construction, Housing, Property, recovery, restructuring

Aug 7, 2025

Fund Letters

Amit Wadhwaney

VAL

Valaris Limited

Energy

Oil & Gas Drilling

Bull

New York Stock Exchange

Drilling, energy, Offshore, Supplydemand, turnaround

Aug 7, 2025

Fund Letters

Amit Wadhwaney

TDW

Tidewater Inc.

Energy

Oil & Gas Equipment & Services

Bull

New York Stock Exchange

Cyclicals, energy, Offshore, valuation, Vessels

TICKER	COMMENTARY
VAL	Valaris, the largest individual contributor to performance in H1. Shares of this U.S.-based provider of offshore drilling services surged in response to the February 9th announcement that the company had agreed to be acquired by Transocean in an all-stock transaction, which was priced at a roughly 32% premium to Valaris' stock price (based on the previous day's closing price of each stock). Valaris was added to the Fund in early 2025 following a slide in its share price, amid then-subdued oil prices and what we believed to be a temporary lull in offshore drilling activity caused by support infrastructure constraints (among other factors). These shorter-term headwinds temporarily overshadowed the longer-term benefits of what we viewed to be a dramatic transformation undergone by the offshore drilling industry since 2019. A wave of bankruptcies, mergers, and acquisitions has consolidated the higher-spec deepwater rig market into just four companies (including Transocean and Valaris) that arguably dominate the space; meanwhile Valaris had emerged from its 2021 restructuring with a cleaned-up balance sheet. At the time of purchase, we believed this consolidation was likely to bring long-absent supply and pricing discipline to the industry, with favorable implications for profitability looking forward. Yet the near-term headwinds at that time offered the opportunity to invest in Valaris at a significant discount (in our estimation) to both the construction cost of its fleet and the secondary market value of its rigs. It appears Transocean agrees with that view given its pending takeover offer for Valaris – an announcement that was enthusiastically received by investors, who have generally viewed the combination as a win-win for both companies. Later on in the First Half, we eliminated the Fund's position in Valaris following a surge in its share price that resulted from both the pending Transocean transaction as well as the jump in oil prices due to the war.
AKRBF	Holding company Aker ASA's exemplary track record of value creation via well-executed mergers, purchases, and sales of assets (energy-related and otherwise) is evidenced by the fact that its shares have returned roughly 24.2% per annum on average over the 10 years through June 2026 (in NOK terms), compared to a 13.0% return p.a. provided by the OBX Index in Oslo.
NTCO	Natura Cosméticos, the Brazil-based beauty products retailer, was the most significant detractor from performance back in 2025, as cyclically weak consumer spending in Brazil – driven by inflation and high interest rates (currently 14.25%) that have pressured disposable incomes – as well as costs associated with the company's ongoing business restructuring weighed on shares last year. As we noted at the time, we believe that the weak consumer environment will eventually improve, while Natura's recent jettisoning of non-core business units and renewed focus on its core brands are positive developments for the long-term investment thesis, which we believe remains attractive. Accordingly, we added to the Fund's position in Natura in 2025 and early in 2026. Natura shares rebounded in early 2026, before advancing further after the March 30th announcement that private equity investor Advent International intended to buy an 8% to 10% stake in Natura in the market over the following six months, aiming at an average purchase price of BRL 9.75 per share. Upon purchasing said stake, Advent would be entitled to appoint two members to Natura's board of directors. Also under the proposal, Alessandro Carlucci, former CEO who led Natura during some of its most successful years, would become Chair of a reconstituted board. Natura also announced that its three founders and former CEO Fabio Barbosa would move from the board to a newly formed advisory board, leaving day-to-day decision-making powers to the board of directors. The announcement of an interested financial investor with experience investing in the Brazilian beauty space was well received by the market, as was the proposed board refresh, which at the same time addressed the succession plan of the company's founders. Not surprisingly, the news was well received by investors. With that said, Natura shares subsequently gave back some of their previous YTD gains in the Second Quarter, driven by a Brazilian equity market that saw significant foreign investor outflows, as well as by the persistence of the challenging consumer spending environment, which has weighed on the company's results as management continues to streamline the business and refocus on the company's core brands and markets. While this process will likely take some more time, we believe Natura is making progress that shareholders will ultimately benefit from over the long run. Subsequent to the close of H1, it was announced in July 2026 that Advent International had indeed acquired an 8% economic interest in Natura.
TDW	We'd argue that offshore supply vessel (OSV) operator Tidewater has grown the per share value of its business dramatically since 2018 through a combination of a relentless focus on costs, share repurchases, and most notably, the utilization of its OSV industry-leading balance sheet to make three acquisitions of assets (with a fourth pending) from distressed and/or motivated sellers at deep discounts to replacement costs during a years-long industry depression. In making these opportunistic acquisitions, Tidewater upgraded their fleet and footprint, while generating cost synergies in the process. Like IPC, Tidewater has also been a leading performer during its multi-year holding period, despite oil having some years that were good (2022, 2026), some bad (2019-2020), and some in between.
IPCO	International Petroleum (IPC) has grown its production by 5x and its reserves by 18x since 2017, while shrinking its shares outstanding over that period – with massively positive implications for NAV per share growth. The company achieved this by acquiring deeply depressed Canadian assets in 2017-2018 at distressed prices, executing operationally, developing their asset base over time, and repurchasing shares at attractive prices. As a result, IPC has been one of the Fund's better performers even prior to 2026, despite oil prices being lower at the end of 2025 than they were at the end of 2021 (when the Fund first invested).
SMGZY	Samsonite is the largest luggage manufacturer in the world, owning popular brands that include Tumi, Samsonite, and American Tourister. We would argue that the current valuations of each of these holdings are unusually modest, belying the formidable, leading presence that each boasts in its respective markets.
DOUG	Residential real estate broker Douglas Elliman possesses leading positions in a number of attractive high-end residential markets, including New York City, Miami, the Hamptons, Boston, California, and Dallas-Fort Worth. We would argue that the current valuations of each of these holdings are unusually modest, belying the formidable, leading presence that each boasts in its respective markets.
TPK.L	London-listed Travis Perkins is the largest distributor of building products in the United Kingdom and one of the largest retail sellers of tools, hardware and supplies in the U.K. through its 740-plus store Toolstation franchise. In our view, these businesses possess the positioning and wherewithal to navigate through challenging times. In each case, we believe the long-term investment thesis remains attractive, and we have taken advantage of recently reduced prices to add to each position in the Fund.
BRBY.L	During the First Half, we initiated a position in shares of Barratt Redrow PLC. Barratt is the United Kingdom's largest housebuilder, having completed almost 17,000 homes last year, with a nationwide footprint and offerings geared towards everyone including first-time buyers, families moving into bigger homes, and empty-nesters looking for higher-end homes. The company was formed through the recent merger of Barratt Developments PLC (a nationwide, mid-range builder) and Redrow PLC (a specialist, high-end builder). Despite what we think are attractive long-term fundamentals for the business, the near-term uncertainty has obscured the long-term value and has created the opportunity to buy shares in Barratt at roughly 60% of tangible book value, a level that we believe to be very attractive. We believe Barratt is well-placed to weather the currently challenging market environment, with its long land bank, net cash of £174 million on its balance sheet, and an industry-leading reputation. The U.K. has a growing shortage of residential housing. Estimates vary, but the shortage is believed to be between 4 and 6.5 million homes. To rectify this, the current government has set a target of building 1.5 million homes during its current five-year term, which would equate to roughly 300,000 homes per annum (more than 2x the current level of completions of roughly 141,000 homes).
CNHI	We also initiated a position in shares of CNH Industrial NV. CNH Industrial manufactures and sells specialized machines and services for the farming and construction industries under the Case IH and New Holland brands. The production of high horsepower agricultural equipment (i.e. tractors, combines, etc.) for professional farmers is an oligopoly, of which CNH is the second largest original equipment manufacturer behind John Deere. The dismal near-term financial outlook for farmers has weighed on expectations for farm equipment sales, depressing CNH's stock price and creating an attractive entry point, in our view. Despite recent hardships, the Federal Reserve Bank of Kansas City estimates that U.S. farmer debt-to-asset ratios generally remain reasonably healthy, while the average fleet age for tractors and combines is believed to be near a 25-year peak – suggesting the potential for an eventual replacement cycle. Meanwhile, we believe CNH is well-positioned in a consolidated industry and has a strong balance sheet with which to weather the near-term headwinds. Furthermore, it is controlled by another Fund holding, Exor NV, whom we view as strong owners. Recent business decisions seem to bear this out, as CNH spun out its commercial vehicle segment (Iveco) in 2022, increasing its focus on its primary business, and initiated its first ever stock buyback program, repurchasing nearly 13% of the equity market capitalization since it was announced in 2023.
EXOR.MI	CNH is controlled by another Fund holding, Exor NV, whom we view as strong owners.
LICI.NS	One of them, Life Insurance Corporation of India, is the largest life insurer in the country. Life insurance premium growth tends to outpace the already considerable growth in Indian GDP over time, owing (in part) to the industry's relatively low penetration rate, the country's young, growing population, and the tendency for overall economic growth in developing economies to translate into a higher growth rate in insurance adoption. Because of this growth profile, life insurance stocks in India tend to trade at a premium to embedded value – or the current value of the company's net assets, plus the estimated present value of expected future profits from its currently outstanding life insurance policies. In other words, embedded value represents an estimate of the economic value of the business today, if it were to stop writing new policies entirely and allow the business to go into run-off. Indian life insurers typically trade at meaningful premia to embedded value due to their significant future growth opportunities, which are not factored into that calculation. But due, in part, to the aforementioned developments that damaged investor sentiment towards India, in addition to company-specific hiccups that spooked investors (e.g., a mark-to-market loss on one of its investments), LIC shares declined to the point that the Fund was able to acquire shares at a sizeable discount (exceeding 30%) to embedded value – an extraordinary bargain, in our opinion, given LIC's leading position and attractive long-term growth prospects. As a wholly state-owned mutual prior to its 2022 IPO, historically over 90% of the life insurance policies written by LIC were so-called participating policies, which (in general) typically promises a guaranteed amount on death or maturity, plus a share of any extra profit the insurer generates above that guarantee by investing the premium income. Non-participating policies, on the other hand, generally provide a guaranteed payment, but the policyholder does not participate in any excess returns generated by the life insurance company. In the roughly four years since its IPO, LIC has increased the proportion of non-participating policies it has written from less than 10% to over 35% at present – with obviously favorable implications for profit margins. Second, National Stock Exchange of India (NSE), the operator of the world's busiest derivatives market, recently filed draft documents for what could be the largest IPO in India's history. LIC owns a 10.72% stake in NSE. It is not known exactly when NSE might go public, but we suspect that if/when the listing occurs, it might shine light on meaningful hidden value within LIC, and if NSE goes public at a premium to its carrying value on LIC's balance sheet (quite possible), that could potentially further increase LIC's embedded value.
TATACHEM.NS	The other newly added position, Tata Chemicals Ltd., part of the Tata Group, is an Indian-domiciled chemicals company with a strong presence in the soda ash industry. Soda ash is a raw material used in various applications, including glass manufacturing (making up over 50% of demand at present), soaps, detergents, chemicals, water treatment, and industrial processes. Global soda ash demand is projected to grow at a healthy rate into the future, partly due to its use as an input for solar cell and lithium production. We believe that low-cost producers such as TTCH are reasonably well-positioned to benefit from growth in soda ash demand over time. Despite promising long-term prospects, however, soda ash production is at its core a humdrum, unexciting (though attractive) and cyclical business. Where the situation gets much more interesting, however, is that in addition to its attractive operating business, TTCH also has an extensive investment portfolio that is dominated by its 2.53% stake in Tata Sons, the large, sprawling Indian Holding Company. Tata Sons, in turn, owns what we believe is an exceedingly attractive portfolio of Indian securities that possess meaningful presences across wide swathes of the Indian economy. Nonetheless, because Tata Sons is a private entity that is held by TTCH as an investment, away from TTCH's day-to-day business of producing soda ash, it has tended to be overlooked by analysts who focus on the going concern operations. As a result, despite its significant investment portfolio, TTCH stock appears to largely trade in line with the near-term prospects of the global soda ash industry, which is currently experiencing a meaningful cyclical downturn. This provided the Fund with the opportunity to acquire TTCH stock at what we believe to be a cyclically modest valuation for the soda ash business, while also gaining an ownership stake in TTCH's exceptional investment portfolio at very little-to-no cost. Said another way, we were able to acquire shares of TTCH at what we believe to be a significant discount to its sum-of-the-parts value – which is intriguing to us because the Reserve Bank of India (RBI) is currently pressuring Tata Sons to publicly list its shares in an IPO, given its status as a large Non-Banking Financial Company.
DC.TO	Dundee is among the more meaningful positive contributors to Fund performance over the past five years. Canada's Dundee Corp. scores highly, having compiled a remarkable track record over the years in transforming its asset base from a diverse collection of interests to an investment portfolio focused on early-stage mining companies (precious and base metals) – monetizing a number of exceptionally lucrative investments in recent years (e.g. Reunion Gold/G Mining Ventures).
WPM	Companies such as Dundee and Wheaton Precious Metals (another precious metals-related Fund holding) have made their living seizing investment opportunities during temporarily depressed periods, and we would argue they stand well-positioned to take advantage of such times moving forward as well.
GGAL	Four new positions were initiated in the Fund during H1, in addition to the return of a lucrative recent investment – Argentine bank Grupo Financiero Galicia – whose share price declined in early 2026 to levels that we once again found attractive.

TICKER

COMMENTARY

VAL

Valaris, the largest individual contributor to performance in H1. Shares of this U.S.-based provider of offshore drilling services surged in response to the February 9th announcement that the company had agreed to be acquired by Transocean in an all-stock transaction, which was priced at a roughly 32% premium to Valaris' stock price (based on the previous day's closing price of each stock). Valaris was added to the Fund in early 2025 following a slide in its share price, amid then-subdued oil prices and what we believed to be a temporary lull in offshore drilling activity caused by support infrastructure constraints (among other factors). These shorter-term headwinds temporarily overshadowed the longer-term benefits of what we viewed to be a dramatic transformation undergone by the offshore drilling industry since 2019. A wave of bankruptcies, mergers, and acquisitions has consolidated the higher-spec deepwater rig market into just four companies (including Transocean and Valaris) that arguably dominate the space; meanwhile Valaris had emerged from its 2021 restructuring with a cleaned-up balance sheet. At the time of purchase, we believed this consolidation was likely to bring long-absent supply and pricing discipline to the industry, with favorable implications for profitability looking forward. Yet the near-term headwinds at that time offered the opportunity to invest in Valaris at a significant discount (in our estimation) to both the construction cost of its fleet and the secondary market value of its rigs. It appears Transocean agrees with that view given its pending takeover offer for Valaris – an announcement that was enthusiastically received by investors, who have generally viewed the combination as a win-win for both companies. Later on in the First Half, we eliminated the Fund's position in Valaris following a surge in its share price that resulted from both the pending Transocean transaction as well as the jump in oil prices due to the war.

AKRBF

Holding company Aker ASA's exemplary track record of value creation via well-executed mergers, purchases, and sales of assets (energy-related and otherwise) is evidenced by the fact that its shares have returned roughly 24.2% per annum on average over the 10 years through June 2026 (in NOK terms), compared to a 13.0% return p.a. provided by the OBX Index in Oslo.

NTCO

Natura Cosméticos, the Brazil-based beauty products retailer, was the most significant detractor from performance back in 2025, as cyclically weak consumer spending in Brazil – driven by inflation and high interest rates (currently 14.25%) that have pressured disposable incomes – as well as costs associated with the company's ongoing business restructuring weighed on shares last year. As we noted at the time, we believe that the weak consumer environment will eventually improve, while Natura's recent jettisoning of non-core business units and renewed focus on its core brands are positive developments for the long-term investment thesis, which we believe remains attractive. Accordingly, we added to the Fund's position in Natura in 2025 and early in 2026. Natura shares rebounded in early 2026, before advancing further after the March 30th announcement that private equity investor Advent International intended to buy an 8% to 10% stake in Natura in the market over the following six months, aiming at an average purchase price of BRL 9.75 per share. Upon purchasing said stake, Advent would be entitled to appoint two members to Natura's board of directors. Also under the proposal, Alessandro Carlucci, former CEO who led Natura during some of its most successful years, would become Chair of a reconstituted board. Natura also announced that its three founders and former CEO Fabio Barbosa would move from the board to a newly formed advisory board, leaving day-to-day decision-making powers to the board of directors. The announcement of an interested financial investor with experience investing in the Brazilian beauty space was well received by the market, as was the proposed board refresh, which at the same time addressed the succession plan of the company's founders. Not surprisingly, the news was well received by investors. With that said, Natura shares subsequently gave back some of their previous YTD gains in the Second Quarter, driven by a Brazilian equity market that saw significant foreign investor outflows, as well as by the persistence of the challenging consumer spending environment, which has weighed on the company's results as management continues to streamline the business and refocus on the company's core brands and markets. While this process will likely take some more time, we believe Natura is making progress that shareholders will ultimately benefit from over the long run. Subsequent to the close of H1, it was announced in July 2026 that Advent International had indeed acquired an 8% economic interest in Natura.

TDW

We'd argue that offshore supply vessel (OSV) operator Tidewater has grown the per share value of its business dramatically since 2018 through a combination of a relentless focus on costs, share repurchases, and most notably, the utilization of its OSV industry-leading balance sheet to make three acquisitions of assets (with a fourth pending) from distressed and/or motivated sellers at deep discounts to replacement costs during a years-long industry depression. In making these opportunistic acquisitions, Tidewater upgraded their fleet and footprint, while generating cost synergies in the process. Like IPC, Tidewater has also been a leading performer during its multi-year holding period, despite oil having some years that were good (2022, 2026), some bad (2019-2020), and some in between.

IPCO

International Petroleum (IPC) has grown its production by 5x and its reserves by 18x since 2017, while shrinking its shares outstanding over that period – with massively positive implications for NAV per share growth. The company achieved this by acquiring deeply depressed Canadian assets in 2017-2018 at distressed prices, executing operationally, developing their asset base over time, and repurchasing shares at attractive prices. As a result, IPC has been one of the Fund's better performers even prior to 2026, despite oil prices being lower at the end of 2025 than they were at the end of 2021 (when the Fund first invested).

SMGZY

Samsonite is the largest luggage manufacturer in the world, owning popular brands that include Tumi, Samsonite, and American Tourister. We would argue that the current valuations of each of these holdings are unusually modest, belying the formidable, leading presence that each boasts in its respective markets.

DOUG

Residential real estate broker Douglas Elliman possesses leading positions in a number of attractive high-end residential markets, including New York City, Miami, the Hamptons, Boston, California, and Dallas-Fort Worth. We would argue that the current valuations of each of these holdings are unusually modest, belying the formidable, leading presence that each boasts in its respective markets.

TPK.L

London-listed Travis Perkins is the largest distributor of building products in the United Kingdom and one of the largest retail sellers of tools, hardware and supplies in the U.K. through its 740-plus store Toolstation franchise. In our view, these businesses possess the positioning and wherewithal to navigate through challenging times. In each case, we believe the long-term investment thesis remains attractive, and we have taken advantage of recently reduced prices to add to each position in the Fund.

BRBY.L

During the First Half, we initiated a position in shares of Barratt Redrow PLC. Barratt is the United Kingdom's largest housebuilder, having completed almost 17,000 homes last year, with a nationwide footprint and offerings geared towards everyone including first-time buyers, families moving into bigger homes, and empty-nesters looking for higher-end homes. The company was formed through the recent merger of Barratt Developments PLC (a nationwide, mid-range builder) and Redrow PLC (a specialist, high-end builder). Despite what we think are attractive long-term fundamentals for the business, the near-term uncertainty has obscured the long-term value and has created the opportunity to buy shares in Barratt at roughly 60% of tangible book value, a level that we believe to be very attractive. We believe Barratt is well-placed to weather the currently challenging market environment, with its long land bank, net cash of £174 million on its balance sheet, and an industry-leading reputation. The U.K. has a growing shortage of residential housing. Estimates vary, but the shortage is believed to be between 4 and 6.5 million homes. To rectify this, the current government has set a target of building 1.5 million homes during its current five-year term, which would equate to roughly 300,000 homes per annum (more than 2x the current level of completions of roughly 141,000 homes).

CNHI

We also initiated a position in shares of CNH Industrial NV. CNH Industrial manufactures and sells specialized machines and services for the farming and construction industries under the Case IH and New Holland brands. The production of high horsepower agricultural equipment (i.e. tractors, combines, etc.) for professional farmers is an oligopoly, of which CNH is the second largest original equipment manufacturer behind John Deere. The dismal near-term financial outlook for farmers has weighed on expectations for farm equipment sales, depressing CNH's stock price and creating an attractive entry point, in our view. Despite recent hardships, the Federal Reserve Bank of Kansas City estimates that U.S. farmer debt-to-asset ratios generally remain reasonably healthy, while the average fleet age for tractors and combines is believed to be near a 25-year peak – suggesting the potential for an eventual replacement cycle. Meanwhile, we believe CNH is well-positioned in a consolidated industry and has a strong balance sheet with which to weather the near-term headwinds. Furthermore, it is controlled by another Fund holding, Exor NV, whom we view as strong owners. Recent business decisions seem to bear this out, as CNH spun out its commercial vehicle segment (Iveco) in 2022, increasing its focus on its primary business, and initiated its first ever stock buyback program, repurchasing nearly 13% of the equity market capitalization since it was announced in 2023.

EXOR.MI

CNH is controlled by another Fund holding, Exor NV, whom we view as strong owners.

LICI.NS

One of them, Life Insurance Corporation of India, is the largest life insurer in the country. Life insurance premium growth tends to outpace the already considerable growth in Indian GDP over time, owing (in part) to the industry's relatively low penetration rate, the country's young, growing population, and the tendency for overall economic growth in developing economies to translate into a higher growth rate in insurance adoption. Because of this growth profile, life insurance stocks in India tend to trade at a premium to embedded value – or the current value of the company's net assets, plus the estimated present value of expected future profits from its currently outstanding life insurance policies. In other words, embedded value represents an estimate of the economic value of the business today, if it were to stop writing new policies entirely and allow the business to go into run-off. Indian life insurers typically trade at meaningful premia to embedded value due to their significant future growth opportunities, which are not factored into that calculation. But due, in part, to the aforementioned developments that damaged investor sentiment towards India, in addition to company-specific hiccups that spooked investors (e.g., a mark-to-market loss on one of its investments), LIC shares declined to the point that the Fund was able to acquire shares at a sizeable discount (exceeding 30%) to embedded value – an extraordinary bargain, in our opinion, given LIC's leading position and attractive long-term growth prospects. As a wholly state-owned mutual prior to its 2022 IPO, historically over 90% of the life insurance policies written by LIC were so-called participating policies, which (in general) typically promises a guaranteed amount on death or maturity, plus a share of any extra profit the insurer generates above that guarantee by investing the premium income. Non-participating policies, on the other hand, generally provide a guaranteed payment, but the policyholder does not participate in any excess returns generated by the life insurance company. In the roughly four years since its IPO, LIC has increased the proportion of non-participating policies it has written from less than 10% to over 35% at present – with obviously favorable implications for profit margins. Second, National Stock Exchange of India (NSE), the operator of the world's busiest derivatives market, recently filed draft documents for what could be the largest IPO in India's history. LIC owns a 10.72% stake in NSE. It is not known exactly when NSE might go public, but we suspect that if/when the listing occurs, it might shine light on meaningful hidden value within LIC, and if NSE goes public at a premium to its carrying value on LIC's balance sheet (quite possible), that could potentially further increase LIC's embedded value.

TATACHEM.NS

The other newly added position, Tata Chemicals Ltd., part of the Tata Group, is an Indian-domiciled chemicals company with a strong presence in the soda ash industry. Soda ash is a raw material used in various applications, including glass manufacturing (making up over 50% of demand at present), soaps, detergents, chemicals, water treatment, and industrial processes. Global soda ash demand is projected to grow at a healthy rate into the future, partly due to its use as an input for solar cell and lithium production. We believe that low-cost producers such as TTCH are reasonably well-positioned to benefit from growth in soda ash demand over time. Despite promising long-term prospects, however, soda ash production is at its core a humdrum, unexciting (though attractive) and cyclical business. Where the situation gets much more interesting, however, is that in addition to its attractive operating business, TTCH also has an extensive investment portfolio that is dominated by its 2.53% stake in Tata Sons, the large, sprawling Indian Holding Company. Tata Sons, in turn, owns what we believe is an exceedingly attractive portfolio of Indian securities that possess meaningful presences across wide swathes of the Indian economy. Nonetheless, because Tata Sons is a private entity that is held by TTCH as an investment, away from TTCH's day-to-day business of producing soda ash, it has tended to be overlooked by analysts who focus on the going concern operations. As a result, despite its significant investment portfolio, TTCH stock appears to largely trade in line with the near-term prospects of the global soda ash industry, which is currently experiencing a meaningful cyclical downturn. This provided the Fund with the opportunity to acquire TTCH stock at what we believe to be a cyclically modest valuation for the soda ash business, while also gaining an ownership stake in TTCH's exceptional investment portfolio at very little-to-no cost. Said another way, we were able to acquire shares of TTCH at what we believe to be a significant discount to its sum-of-the-parts value – which is intriguing to us because the Reserve Bank of India (RBI) is currently pressuring Tata Sons to publicly list its shares in an IPO, given its status as a large Non-Banking Financial Company.

DC.TO

Dundee is among the more meaningful positive contributors to Fund performance over the past five years. Canada's Dundee Corp. scores highly, having compiled a remarkable track record over the years in transforming its asset base from a diverse collection of interests to an investment portfolio focused on early-stage mining companies (precious and base metals) – monetizing a number of exceptionally lucrative investments in recent years (e.g. Reunion Gold/G Mining Ventures).

WPM

Companies such as Dundee and Wheaton Precious Metals (another precious metals-related Fund holding) have made their living seizing investment opportunities during temporarily depressed periods, and we would argue they stand well-positioned to take advantage of such times moving forward as well.

GGAL

Four new positions were initiated in the Fund during H1, in addition to the return of a lucrative recent investment – Argentine bank Grupo Financiero Galicia – whose share price declined in early 2026 to levels that we once again found attractive.

Ticker	Put/Call	Company Name	Industry	Value (M)	Shares	Weight %	Shares Purchased/Sold	Change in Share %	Market Cap (M)
JEF	-	JEFFERIES FINANCIAL GROUP ORD	Financials	37.8M	609,721	16.3%	-70,122	-10.3%	11,103.5M
WPM	-	WHEATON PRECIOUS METALS ORD	Materials	36.2M	307,902	15.6%	-90,445	-22.7%	65,810.7M
NTR	-	NUTRIEN ORD	Materials	32.1M	519,789	13.8%	-75,832	-12.7%	34,197.5M
VAL	-	VALARIS ORD	Energy	30.6M	607,897	13.2%	-100,117	-14.1%	6,320.7M
BBD	-	BANCO BRADESCO ADR REPSTG 1 PRF	Financials	27.7M	8,303,820	11.9%	-1,904,170	-18.7%	41,832.1M
ARCO	-	ARCOS DORADOS HOLDINGS CL A ORD	Consumer Discretionary	26.1M	3,556,906	11.3%	226,912	6.8%	1,786.4M
BN	-	BROOKFIELD CL A ORD	Financials	10.5M	227,939	4.5%	70,788	45.0%	106,643.4M
GFR	-	GREENFIRE RESOURCES ORD	Energy	8.1M	1,693,492	3.5%	1,693,492	New Buy	747.4M
DOUG	-	DOUGLAS ELLIMAN ORD	Real Estate	6.9M	2,925,990	3.0%	0	No Change	221.6M
TDW	-	TIDEWATER ORD	Energy	5.2M	102,229	2.2%	0	No Change	3,503.1M

Ticker

Put/Call

Company Name

Industry

Value (M)

Weight %

Shares Purchased/Sold

Change in Share %

Market Cap (M)

JEF

JEFFERIES FINANCIAL GROUP ORD

Financials

37.8M

609,721

16.3%

-70,122

-10.3%

11,103.5M

WPM

WHEATON PRECIOUS METALS ORD

Materials

36.2M

307,902

15.6%

-90,445

-22.7%

65,810.7M

NTR

NUTRIEN ORD

Materials

32.1M

519,789

13.8%

-75,832

-12.7%

34,197.5M

VAL

VALARIS ORD

Energy

30.6M

607,897

13.2%

-100,117

-14.1%

6,320.7M

BBD

BANCO BRADESCO ADR REPSTG 1 PRF

Financials

27.7M

8,303,820

11.9%

-1,904,170

-18.7%

41,832.1M

ARCO

ARCOS DORADOS HOLDINGS CL A ORD

Consumer Discretionary

26.1M

3,556,906

11.3%

226,912

6.8%

1,786.4M

BROOKFIELD CL A ORD

Financials

10.5M

227,939

4.5%

70,788

45.0%

106,643.4M

GFR

GREENFIRE RESOURCES ORD

Energy

8.1M

1,693,492

3.5%

1,693,492

New Buy

747.4M

DOUG

DOUGLAS ELLIMAN ORD

Real Estate

6.9M

2,925,990

3.0%

No Change

221.6M

TDW

TIDEWATER ORD

Energy

5.2M

102,229

2.2%

No Change

3,503.1M

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
GFR	-	$8.1M	2M	-	3.49%
NFGC	-	$5.0M	2M	-	2.16%
BN	-	$2.5M	71K	45.0%	4.51%
ARCO	-	$1.8M	227K	6.8%	11.26%
CVE	-	$209.4K	12K	-	0.09%

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

GFR

$8.1M

3.49%

NFGC

$5.0M

2.16%

$2.5M

71K

45.0%

4.51%

ARCO

$1.8M

227K

6.8%

11.26%

CVE

$209.4K

12K

0.09%

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
WPM	-	$7.0M	90K	-22.7%	15.60%	Decreased
BBD	-	$4.1M	2M	-18.7%	11.92%	Decreased
VAL	-	$3.9M	100K	-14.1%	13.21%	Decreased
NTR	-	$3.7M	76K	-12.7%	13.83%	Decreased
JEF	-	$3.7M	70K	-10.3%	16.29%	Decreased

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

WPM

$7.0M

90K

-22.7%

15.60%

Decreased

BBD

$4.1M

-18.7%

11.92%

Decreased

VAL

$3.9M

100K

-14.1%

13.21%

Decreased

NTR

$3.7M

76K

-12.7%

13.83%

Decreased

JEF

$3.7M

70K

-10.3%

16.29%

Decreased

Industry	Prev Quarter %	Current Quarter %	Change
Financials	36.24%	34.27%	-1.97%
Materials	36.90%	31.60%	-5.30%
Energy	20.88%	19.01%	-1.87%
Consumer Discretionary	10.49%	11.26%	+0.77%
Real Estate	2.99%	2.99%	+0.00%
Other	0.97%	0.87%	-0.10%

Industry

Prev Quarter %

Current Quarter %

Change

Financials

36.24%

34.27%

-1.97%

Materials

36.90%

31.60%

-5.30%

Energy

20.88%

19.01%

-1.87%

Consumer Discretionary

10.49%

11.26%

+0.77%

Real Estate

2.99%

+0.00%

Other

0.97%

0.87%

-0.10%

Symbol	Company	Filed By	Filing Date	Filing
DESP	Despegar.com Corporation	Moerus Capital Management LLC	Nov 14, 2024	SC 13G/A
DESP	Despegar.com Corporation	Moerus Capital Management LLC	Feb 14, 2024	SC 13G/A
TDW	TIDEWATER INC	Moerus Capital Management LLC	Feb 14, 2023	SC 13G/A
DESP	Despegar.com Corporation	Moerus Capital Management LLC	Feb 14, 2023	SC 13G

Symbol

Company

Filed By

Filing Date

Filing

DESP

Despegar.com Corporation

Moerus Capital Management LLC

Nov 14, 2024

SC 13G/A

DESP

Despegar.com Corporation

Moerus Capital Management LLC

Feb 14, 2024

SC 13G/A

TDW

TIDEWATER INC

Moerus Capital Management LLC

Feb 14, 2023

SC 13G/A

DESP

Despegar.com Corporation

Moerus Capital Management LLC

Feb 14, 2023

SC 13G

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Energy

Precious Metals

Value

Homebuilders

Ag Equipment

India

Consolidation

Oil

Value

Volatility

Geopolitical

AI

Energy

Valuations

Value

Gold

Trade Policy

Offshore Drilling

Brazil

Hong Kong

Argentina

Turkey

Hong Kong

Value

Brazil

Argentina

Turkey

Travel

Oil

Commercial Real Estate

Buybacks

Value

Latin America

Buybacks

Oil Services

Travel

Inflation

Value

Banking

Energy

Buybacks

Latin America

Inflation

Value

Emerging markets

Energy

Uranium

Commercial Real Estate

Travel

Value

Financials

Emerging markets

Travel

Commercial Real Estate

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Amit Wadhwaney Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

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Amit Wadhwaney Latest 13D & 13G Filings

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