| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 66.6% | - | -16.1% |
Bilbel Capital returned -16.1% net in 1H 2026 versus +10.2% for the S&P 500, following exceptional prior-year performance of +58.0% net in 2025. The portfolio holds five concentrated positions purchased at under 3.5x normalized earnings, each with strong balance sheets. The largest position, Water Oasis Group, trades at HK$900 million market value while holding HK$1 billion in cash and earning HK$160 million annually from Hong Kong beauty services. Water Oasis benefits from brand strength that lowers customer acquisition costs and enables premium pricing versus Shenzhen competitors. Rising costs are pressuring smaller Hong Kong clinics, creating consolidation opportunities at attractive multiples. The family ownership raised dividends 43% and is actively acquiring competitors. The manager sold most CareCloud shares to fund more undervalued opportunities, assessing CareCloud's low-cost structure provides defensibility against AI disruption but finding better risk-reward elsewhere. The strategy employs proprietary screening system Argus to identify top 1% opportunities from 15,000 investable stocks monthly, focusing on situations where knowledge edge is not reflected in market prices.
Deep value investing in overlooked small-cap companies trading at significant discounts to intrinsic value, with focus on businesses possessing durable competitive advantages, strong cash generation, and opportunities for value realization through consolidation, capital allocation, or market re-rating.
Manager expects to buy more of the rare opportunities identified over time. Water Oasis positioned to consolidate Hong Kong beauty market as cost pressures force smaller competitors to exit. CareCloud's competitive positioning assessed as defensible against AI disruption due to cost structure advantages, though position reduced to fund higher-conviction ideas.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 2 2026 | 2026 Q2 | 0161.HK, CCLD | AI, Beauty, Consolidation, Healthcare IT, Hong Kong, small caps, value | - | Bilbel Capital runs concentrated deep value portfolio of five positions bought under 3.5x earnings with strong balance sheets. Lead position Water Oasis trades at fraction of cash holdings while dominating Hong Kong beauty services with consolidation runway. Manager sold CareCloud to fund more undervalued opportunities. Proprietary screening identifies top 1% ideas monthly from 15,000 stocks. 1H 2026 returned -16.1% net following +58.0% in 2025. |
| Feb 2 2026 | 2025 Q4 | 5C8.SI, CCLD, ICG.SI | Asia, cash flow, Cement, Consolidation, Construction, Healthcare IT, Margins, value | - | Bilbel Capital targets undervalued companies with sustainable competitive advantages, particularly in consolidating industries. Current focus on CareCloud's healthcare IT consolidation play, projecting EBITDA growth to $45-50M by 2027 versus $115M market cap. Portfolio concentrated in Asia with emphasis on businesses benefiting from high switching costs, operational efficiencies, and rational competitive dynamics. |
| Aug 27 2025 | 2025 Q2 | 5HT.SI, CCLD | Healthcare IT, Revenue Cycle Management, Singapore, small caps, technology, value |
CCLD ILO.AX |
Bilbel Capital targets deeply undervalued small-caps with temporary constraints masking business quality. The fund's 58.99% 1H 2025 return was driven by CareCloud, a healthcare IT company trading at 5.7x EBITDA versus peers at 18x, and profitable exit from Singapore infrastructure play Huationg Global after 100% gain. |
| Feb 2 2025 | 2024 Q4 | - | Construction, healthcare, Logistics, REITs, small caps, Turkey, value |
RYGYO.IS INTEG.ST 294870.KS |
Bilbel Capital's concentrated portfolio delivered 129% returns in 2024, led by Turkish warehouse REIT Reysas benefiting from structural shortage and Swedish healthcare tech Intellego with secured $360M deal. The fund targets undervalued small-caps with competitive advantages and insider alignment, recently adding Korean construction company Seohee and an undisclosed cash-rich position. |
| Aug 2 2024 | 2024 Q2 | DIS, OTIS | Asia, Concentration, healthcare, small caps, value |
INTL.L 1126.HK 0882.HK |
Bilbel Capital's concentrated portfolio delivered 73% returns through deep value investing in quality businesses. Key holdings include Reysas GYO real estate, Intellego's UV-C healthcare technology trading at 5x earnings, and Dream International's Disney-partnered toy manufacturing. The manager focuses on companies with sustainable advantages selling below intrinsic value, making decisive moves when opportunity aligns with skill. |
| Feb 2 2024 | 2023 Q4 | - | Concentration, Logistics, real estate, Turkey, value | - | Bilbel Capital maintains 100% concentration in Turkish logistics company Reysas, which owns $1 billion in appraised real estate while trading at significant discounts. Below-market rental rates will reset higher as contracts renew, driving substantial value realization. Management alignment is strong with 30.83% ownership and recent insider purchases. |
| Feb 8 2023 | 2023 Q2 | - | Concentration, Logistics, REIT, Turkey, value | - | Bilbel Capital maintains extreme concentration in Turkish logistics company Reysas, delivering 474% returns since inception. Trading at 540M versus estimated intrinsic value of 1.75B+, the manager expects 1000% returns over the next decade. Recent management capital participation signals confidence despite currency and banking sector headwinds in Turkey. |
| Feb 2 2023 | 2022 Q4 | RYSAS TI | - | - | |
| Feb 8 2022 | 2022 Q2 | RYSAS TI | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
BeautyWater Oasis Group operates Hong Kong beauty services with strong brand positioning that lowers perceived risk and raises status for customers. The company benefits from prepaid treatment model generating HK$1 billion cash, with opportunities to consolidate struggling competitors as rising costs pressure smaller Hong Kong clinics. Management acquiring existing clinics at attractive multiples while maintaining high dividend payouts. |
Hong Kong Brand Consolidation Services Prepaid |
Healthcare ITCareCloud position reduced to fund more undervalued opportunities. Revenue retention within normal structural churn range of 4-6%. AI impact assessed across customer acquisition costs, pricing pressure, and client revenue, with manager concluding CareCloud's low-cost structure provides competitive advantage if switching costs decline. Long-term revenue risk from AI-driven healthcare cost reduction requires major technological and regulatory changes over many years. |
RCM AI Switching Costs Revenue Cycle | |
AIAI evaluated primarily as competitive threat to CareCloud's revenue cycle management business. Manager assesses AI could increase customer acquisition costs for competitors, enable price competition if switching costs fall, or reduce client revenue if healthcare becomes cheaper. CareCloud's cost advantage positions it to benefit if AI lowers switching friction. Structural revenue impact from AI-driven healthcare cost reduction viewed as multi-year scenario requiring major technological and regulatory shifts. |
Healthcare Cost Structure Automation Competition | |
Hong KongWater Oasis positioned as dominant Hong Kong beauty services provider with brand strength enabling premium pricing versus Shenzhen competitors. Small Hong Kong clinics squeezed between low-cost Shenzhen alternatives and Water Oasis' superior brand and convenience. Rising wages and equipment costs pressuring smaller operators, creating acquisition opportunities for Water Oasis to consolidate market share at attractive valuations. |
Beauty Services Consolidation Brand Competition | |
| 2025 Q4 |
Healthcare ITCareCloud helps smaller U.S. health practices manage data and collect payments. High switching costs lock in practices but also lock out competitors. Most RCMs have high fixed costs and too few clients, creating consolidation opportunities for CareCloud to buy cheaply and cut costs. |
Healthcare IT RCM EHR Consolidation Switching Costs |
CementICG owns cement plants in Kazakhstan and Tajikistan with significant energy and transport cost advantages. Newer dry process plants use 20-30% less fuel than competitors, while proximity to customers saves additional transport costs. Government demand provides stability. |
Cement Energy Efficiency Transport Kazakhstan Cost Advantage | |
ConstructionCTR Holdings builds structural frames and handles finishing work in Singapore. Most projects are public with stable government payments providing guaranteed cash flow. Company had significant net cash and signed project backlog. |
Construction Singapore Government Cash Flow Backlog | |
| 2025 Q2 |
Healthcare ITCareCloud operates in the growing outsourced Revenue Cycle Management market, which has expanded 12% annually for the past decade. The company benefits from increasing billing complexity driven by growing insurance codes and insurer payment delays, making outsourcing more attractive than in-house solutions. CareCloud's competitive advantage lies in its low-cost Pakistan operations and comprehensive technology platform. |
Revenue Cycle Management Healthcare Software Outsourcing Medical Billing Electronic Health Records |
ValueThe fund focuses on buying undervalued companies trading at significant discounts to intrinsic value. CareCloud trades at 5.7x EV/EBITDA versus peers at 18x, while undisclosed positions were purchased at less than 2.5 times earnings. The strategy emphasizes finding companies with temporary constraints that mask underlying business quality. |
Deep Value Discount Valuation Undervalued Assets Price-to-Earnings Enterprise Value | |
Small CapsThe portfolio consists primarily of small-cap companies with market capitalizations under $200 million. These include CareCloud at $100M market cap, Intellego Technologies, and various undisclosed positions. The manager acknowledges that as the fund grows, fewer small companies will be available for investment, potentially limiting future returns. |
Small Companies Market Capitalization Liquidity Constraints Growth Limitations Investment Universe | |
| 2024 Q4 |
LogisticsTurkey has a significant warehouse shortage with only 20 million m² of storage space but needing another 20-40 million m². If demand stays constant and the shortage is fixed in 10 years, the industry could grow 7-12% annually. Reysas GYO is positioned to benefit from this structural shortage. |
Warehouses REITs Turkey Storage Infrastructure |
ConstructionSeohee Construction operates a unique model working with Local Housing Associations, building only when enough people commit and secure land first. This approach allows them to avoid inventory risk and debt accumulation while generating higher returns than traditional construction companies. |
Housing South Korea Risk Management Partnerships | |
| 2024 Q2 |
HealthcareUV-C disinfection is superior to chemical disinfection in hospitals due to better kill rates, lower regrowth, faster speed, and decreasing costs as autonomous robots become more efficient. Healthcare-associated infections affect over 4 million patients annually in Europe alone, highlighting the urgent need for better disinfection procedures. UV-C validation through dosimeters will become essential for healthcare facility safety and branding. |
UV-C Disinfection Hospital Safety Validation |
ToymakersDream International benefits from working with large customers like Disney for over 20 years, allowing them to receive recurring large-volume orders that provide cost advantages through economies of scale. This explains their high and consistent margins despite operating in a cyclical industry. The company has tripled sales and increased profits nearly sevenfold over the past 10 years. |
Manufacturing Disney Margins Scale Cyclical | |
ElevatorsThe elevator business generates little money from selling elevators but significant profits from maintenance services. A few large companies dominate due to high startup costs, strict safety regulations, wide service network requirements, and bulk purchasing advantages. Otis is succeeding in China by converting customers from one-time purchases to long-term maintenance contracts, making the business more valuable. |
Maintenance Recurring Barriers China Conversion | |
LogisticsReysas operates logistics businesses that the manager estimates will earn $20-30M annually. The manager switched from Reysas Logistics to Reysas GYO based on valuation analysis, believing GYO offered better upside potential to reach $2B market cap within 5 years. Both companies are now priced similarly at around $700M. |
Reysas Valuation Turkey Real Estate Switching | |
| 2023 Q4 |
LogisticsThe fund is 100% invested in Reysas Logistics, a Turkish logistics company with significant real estate assets. The company owns logistics properties that are being rented below market rates due to Turkish inflation adjustments, creating a value opportunity as contracts renew at higher rates. |
Real Estate Turkey Storage Rental Income |
Commercial Real EstateReysas GYO's property valuations have increased from $400M to $1B over two years. The properties generate rental income of around $40M in 2023, expected to increase to $65M in 2024, with additional income from housing projects by 2025. |
Property Valuation Rental Income Turkey REIT | |
| 2023 Q2 |
LogisticsFund is 100% invested in Reysas Logistics, a Turkish logistics company that has grown from 94M to 540M market cap. Manager discusses the company's extreme demand for logistics services and capital constraints due to restrictive banking policies. The logistics business is valued at above 750M intrinsic value. |
Transportation Vehicles Services Turkey Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 2, 2025 | Fund Letters | Bilbel Capital | CCLD | CareCloud Inc. | Health Care | Health Care Technology | Bull | NASDAQ | acquisition strategy, Billing Services, Consolidation Play, Ehr, Electronic Health Records, Healthcare services, Healthcare Technology, Offshore Operations, Pakistan, Practice Management, RCM, Revenue Cycle Management, Roll-up Strategy, turnaround, Value | Login |
| Aug 2, 2025 | Fund Letters | Bilbel Capital | ILO.AX | Intellego Technologies | Information Technology | Electronic Equipment, Instruments & Components | Bull | ASX | Australia, Dosimeters, Industrial Equipment, manufacturing, Measurement Solutions, Quality Control, Specialty Technology, turnaround, UV Curing, UV Technology | Login |
| Feb 2, 2025 | Fund Letters | Bilbel Capital | 294870.KS | Seohee Construction Company Limited | Industrials | Construction & Engineering | Bull | Korea Exchange | asset-light, construction, Housing, net cash, Pre-funded, Share Buybacks, South Korea, Value | Login |
| Feb 2, 2025 | Fund Letters | Bilbel Capital | RYGYO.IS | Reysas GYO | Real Estate | Industrial REITs | Bull | Borsa Istanbul | dividend yield, infrastructure, Logistics, Real Estate, REITs, Supply Shortage, Turkey, Warehouses | Login |
| Feb 2, 2025 | Fund Letters | Bilbel Capital | INTEG.ST | Intellego Technologies | Health Care | Health Care Technology | Bull | Nasdaq Stockholm | B2B Healthcare, Export Credit, First Mover, Healthcare Technology, Medical devices, patents, Sterilization, Sweden | Login |
| Aug 2, 2024 | Fund Letters | Bilbel Capital | 1126.HK | Dream International Limited | Consumer Discretionary | Leisure Products | Bull | Hong Kong Stock Exchange | Consumer Discretionary, Cyclical, deep value, Disney Partnership, high dividend yield, manufacturing, Toy Manufacturing, Vietnam | Login |
| Aug 2, 2024 | Fund Letters | Bilbel Capital | 0882.HK | Tianjin Development Holdings Limited | Financials | Diversified Financial Services | Bull | Hong Kong Stock Exchange | China, deep value, discount to book value, dividend yield, holding company, maintenance services, Otis Elevator, recurring revenue | Login |
| Aug 2, 2024 | Fund Letters | Bilbel Capital | INTL.L | Intellego Technologies | Health Care | Health Care Equipment | Bull | London Stock Exchange | Dosimeters, Healthcare Equipment, Healthcare Technology, Hospital Safety, Infection Control, Medical devices, patents, UV-C Disinfection | Login |
| Feb 2, 2024 | Fund Letters | Bilbel Capital | - | Reysas Logistics | Industrials | Air Freight & Logistics | Bull | Borsa Istanbul | Asset Backing, Concentrated, Inflation Protection, insider buying, Logistics, Real Estate, REIT, rental income, Turkey, Value, Warehousing | Login |
| Aug 2, 2023 | Fund Letters | Bilbel Capital | - | Reysas Logistics | Industrials | Air Freight & Logistics | Bull | Borsa Istanbul | capital allocation, Concentrated Position, growth, insider buying, Logistics, REIT, Sum-of-Parts Valuation, Transportation, Turkey, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| 0161.HK | Water Oasis began by selling beauty products. Over 25 years, it grew into one of Hong Kong's top beauty-services groups. Today, services make up 93% of revenue. And nearly 100% of profit. Services profit has compounded at 14.9% a year since 2002. For 25 years, Water Oasis has reinforced positive links in customers' minds. Today, these links lower perceived risk and raise status. This lets Water Oasis spend less to win each customer, charge higher prices, and keep them coming back. Water Oasis gives customers discounts for buying many treatments in advance. Water Oasis has HK$1 billion in cash. This includes HK$750 million of non-refundable customer payments – for treatments not yet provided. So as long as sales do not shrink, the business keeps funding itself. The founding family controls the company's cash through its 70% stake. Since 2002, they have paid out 90% of all profits as dividends. Water Oasis used the rest of the cash to open clinics while new locations still earned high returns. It bought back 11.5% of shares when cash built up and the stock was cheap. During Covid, it bought struggling clinics for about 3 times yearly profit. In May 2026, the family raised the dividend by 43%. Right now, they are looking to buy other existing clinics. Most clinics promise similar beauty results. Shenzhen clinics win price-sensitive customers who accept the travel time. Water Oasis wins customers willing to pay more for certainty, convenience, and status. This squeezes small Hong Kong clinics from both sides. They cannot match Shenzhen's costs. And their brands are weaker than Water Oasis'. As this pressure builds, more owners become willing to sell. Water Oasis can buy these clinics cheaply. It can cut costs with shared advertising and systems. Its stronger brands and better equipment can also attract more customers, and keep them returning. All this lets Water Oasis earn high returns from buying them. In 2021, Water Oasis bought Millistrong Group – a Hong Kong beauty service provider. After subtracting Millistrong's cash and adding deal costs, Water Oasis invested about HK$29 million. Before Covid, Millistrong normally earned HK$7-12 million a year. On HK$29 million invested, that is a yearly return of 25-40%. Water Oasis has a market value of HK$900 million. It earns about HK$160 million a year, owns HK$170 million of investment properties. And holds about HK$1 billion in cash. Buying existing clinics turns cash into more profit. Dividends give the cash directly to shareholders. Any mix of the two, is worth much more than today's market price. |
| CCLD | We think CareCloud is undervalued. But we found companies that are more undervalued. So we sold most of our CareCloud shares to buy them. CareCloud's value mainly depends on how many customers it keeps, and how AI will impact their profits. CareCloud bought 4 companies in 2025, after Q1. Including their revenue in Q1 2025, Q1 2026 revenue was 15% lower. The drop came mainly from weaker IT consulting. But this does not matter. Because almost all profit comes from TEBS. Reported TEBS revenue rose 30%. But without acquisitions it fell 5.6%. This is within CareCloud's normal 4% to 6% 'structural churn'. Meaning: doctors retiring, practices closing, or hospitals taking over practices and moving billing elsewhere. AI can hurt companies like CareCloud in 3 ways: Higher customer-acquisition costs, Lower prices or customer losses, Lower client revenue. CareCloud gets most customers by buying small medical billing companies. There are few buyers. And many struggling sellers. Their managers failed to fix them before AI. Now they face less cash and more problems. CareCloud can buy them cheaply. Then it can use its lower-cost team, software and AI to cut costs and sell more services. Good RCM providers already collect most valid claims within 30-60 days. AI has more room to cut costs than improve collections. Switching RCM providers is slow and risky. It takes 2-4 months and can disrupt collections. That alone can cancel out months of savings from a cheaper provider. Most medical providers also lack staff, rooms and clinic space. Switching systems takes staff away from patients. Using that time to treat more patients or add capacity is more valuable. So most hospitals stay with the same RCM provider for decades. They only switch only when poor service starts hurting collections. If AI makes switching cheaper, customers can seek lower prices. To keep the same total profit at lower prices, competitors must gain more customers. That requires higher sales, marketing and support costs. That favors low-cost providers. CareCloud spends $65 for every $100 of TEBS revenue. Versus $80 for competitors like TruBridge. At an $80 price, CareCloud still earns $15. While TruBridge earns nothing. So CareCloud can benefit either way. If switching stays costly, most customers stay. If switching gets cheaper, CareCloud's lower costs let it cut prices and still earn more than competitors. CareCloud earns a share of the money healthcare providers collect. In the short term, AI could make care cheaper. Providers could make more profit on each visit. And treat more patients with the same staff. For AI to sharply reduce CareCloud's profits over time, all of the following needs to happen: New medicine, AI and robots become safe, reliable, legally approved, cheap, and widely used. Payers reduce payment rates, or care shifts toward cheaper services. Patient volume fails to make up for the lower payments. It is possible. But it requires major advances in technology. And big changes in regulation, incentives, pricing, demand, and supply. All of that would take many years. |
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