| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 17.5% | 0.3% | 0.3% |
The smallvalue portfolio delivered a 0.30% return in Q1 2026, achieved on the final day of a highly volatile quarter marked by geopolitical tensions, particularly involving Iran and energy markets. The manager maintained discipline by avoiding oil sector exposure despite strong performance, emphasizing the importance of staying within their circle of competence. The portfolio focuses on traditional industries like cement, food, luxury goods, and glass, with Junior Gold Miners ETF as the largest position at 28.56%. Key detractors included Orsero (down 19%) due to shipping costs and Vidrala (down 15%) from natural gas price increases, while Mama's Creations (up 14.6%) and Olvi Oyj (up 8.61%) provided positive contributions. The manager acknowledged an investment mistake with Sprouts Farmers Market, holding too long as it rose from $24 to $170 before declining. Since inception in 2020, the portfolio has generated 112.22% cumulative returns, equivalent to 17.50% annualized. The manager maintains confidence in current positions while acknowledging multiple challenges ahead including private credit stress, geopolitical tensions, elevated valuations, and rising debt levels globally.
Focus on companies outside fashionable sectors, emphasizing businesses with straightforward models operating in traditional industries such as cement, food, luxury goods, and glass, prioritizing investments that offer visibility, robustness, and consistency rather than pursuing higher returns that would necessitate materially higher risk levels.
This year looks set to be volatile, with multiple challenges on the horizon. The manager maintains strong confidence in the portfolio's positions and continues to manage liquidity with discipline and prudence, fully aligned with long-term investment philosophy. The manager looks forward to the remaining quarters of 2026 with optimism and enthusiasm.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 8 2026 | 2026 Q1 | GDXJ, OLVI.HE, ORO.MI, RING.DE, SAN.MI, SFM, VID.MC | Europe, Geopolitical, small caps, Traditional Industries, value, volatility |
SFM ORO.MI VID.MC |
smallvalue delivered 0.30% in volatile Q1 2026, maintaining discipline by avoiding oil despite strong performance and focusing on traditional industries. Junior Gold Miners ETF leads at 28.56% allocation. Orsero and Vidrala detracted while Mama's Creations and Olvi contributed positively. Manager acknowledged Sprouts mistake, holding too long through $24-$170 surge. Since 2020 inception, portfolio generated 17.50% annualized returns despite ongoing geopolitical and valuation challenges. |
| Jan 6 2026 | 2025 Q4 | AVGO, NVDA, OLVI.HE, ORCL, PLTR, SFM, TSLA | AI, Beverages, Copper, Data centers, Europe, Grocers, small caps, value | SFM | Smallvalue delivered 37.7% returns in 2025 focusing on undervalued small-caps in traditional industries while avoiding AI hype. Despite Sprouts' 45% decline, the manager maintains conviction in quality businesses with expansion potential. Europe's massive capital investment wave in digitalization and electrification creates structural opportunities, particularly for copper and industrial suppliers supporting data center infrastructure buildout. |
| Oct 3 2025 | 2025 Q3 | 2RM.DE, BABA, SAN.MI | Europe, fundamentals, Gold Miners, long-term, small caps, value |
ORS RGG SLR MAMA |
smallvalue delivered 12.33% Q3 returns driven by gold miners and Orsero strength, maintaining 18.40% annualized returns since 2020 inception. Manager added Ringmetall position while acknowledging performance partly due to favorable conditions. Gold miners showing narrowing safety margins with potential exit consideration. Focus remains on undervalued small-caps with solid fundamentals despite expected continued market volatility. |
| Jun 12 2025 | 2025 Q2 | CALT.MI, CEM.MI, G.MI, MB.MI, OLVI.HE, ORSERO.MI, SAN.MI, SFM | Europe, gold, portfolio, small caps, undervalued, value |
TOYA.WA ORO.MI CAL.MI |
Smallvalue outperformed with 10.06% Q2 returns driven by Toya and Orsero gains, while adding undervalued Caltagirone at 6.6x P/E. USD weakness impacted dollar positions but manager maintains conviction in small-cap value approach across Europe. Political uncertainty creates volatility but presents opportunities for patient capital in fundamentally strong, undervalued companies. |
| May 8 2025 | 2025 Q1 | SL, TOAA | Europe, fundamentals, gold, Independent, small cap, Trade Policy, undervalued, value |
TOA SL |
Smallvalue outperformed in Q1 2025 with 4.3% returns driven by gold exposure amid policy uncertainty. The manager initiated positions in undervalued Polish tools distributor Toya and increased Italian yacht manufacturer Sanlorenzo stake. Emphasizing independent fundamental analysis and disciplined capital deployment, the portfolio targets small-cap European companies with strong fundamentals and management alignment trading below intrinsic value. |
| Jan 6 2025 | 2024 Q4 | OLVAS.HE, ORS.MI, SL.MI | Concentration, Europe, Luxury, small caps, value |
ORS.MI SL.MI OLVAS.HE |
Smallvalue delivered 29.56% return in 2024 through concentrated small-cap European value investing. Portfolio includes undervalued companies like Orsero (8x P/E), luxury yacht leader Sanlorenzo with record backlog, and Finnish beverage company Olvi with strong fundamentals. Manager divested speculative Lilium position, reinforcing discipline within circle of competence while maintaining optimism about current concentrated holdings. |
| Oct 10 2024 | 2024 Q3 | OLVAS.HE, ORS.MI, SL.MI, UAA | Europe, long-term, small caps, undervalued, value |
ORS.MI OLVAS.HE SL.MI |
Smallvalue posted 8.91% Q3 returns driven by Fed rate cuts and European monetary easing. Portfolio holds eight small-cap European companies with strong value characteristics. Added undervalued Italian distributor Orsero and Finnish beverage company Olvi while divesting Under Armour. Manager maintains disciplined long-term approach focused on European opportunities. |
| Jul 12 2024 | 2024 Q2 | UAA | Europe, gold, Portfolio Management, small caps, value |
UAA GDXJ TGYM.MI |
Smallvalue delivered strong Q2 performance outperforming benchmarks through concentrated small-cap value strategy. Added gold mining exposure amid favorable macro environment while divesting Technogym. Under Armour remains challenged position. Manager maintains disciplined long-term approach monitoring European and Australian opportunities, positioning for strategic acquisitions when valuations align with value creation objectives. |
| May 3 2024 | 2024 Q1 | UAA | Europe, Resilience, small caps, United States, value | - | Smallvalue delivered 4% returns in Q1 2024, outperforming small-cap indices while focusing on undervalued European and US small/mid-cap companies. The manager increased Under Armour exposure following founder's return and maintains seven positions with disciplined cash deployment. Despite macro headwinds, optimism remains high for long-term value creation through patient, speculation-resistant investing. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
GoldJunior Gold Miners ETF represents the largest position at 28.56% of capital. The portfolio includes mining stocks that contributed 1.39% positive returns during the quarter. |
Gold Miners Junior Miners Mining Commodities ETFs |
FoodPortfolio includes food-related companies like Mama's Creations (19.15% allocation, up 14.6% in euros) and Orsero, a fruit distribution and shipping company. Focus on traditional food industry businesses with straightforward models. |
Food Distribution Beverages Agriculture Distribution Logistics | |
GlassVidrala is a glass packaging company that declined 15% during the quarter due to rising input costs, particularly natural gas prices. The company is fully hedged for 2026 with around 80% exposure secured through 2027. |
Glass Packaging Building Materials Industrial Energy | |
LuxurySanlorenzo, a luxury yacht manufacturer, advanced 1.65% during the quarter. The portfolio emphasizes businesses in traditional industries including luxury goods. |
Luxury Manufacturing Marine Consumer Discretionary | |
| 2025 Q4 |
AIAI was the central theme of 2025, driving stock indices and intense debate about whether this time is different or if we're in a bubble. The manager notes massive capital requirements, enormous energy consumption, uncertainty over profitability, and risk of asset depreciation. AI-related capital investment represents around 2% of U.S. GDP, highlighting extraordinary scale and risk. |
Artificial Intelligence Infrastructure Bubble Capital Investment Energy |
Small CapsThe manager's portfolio is composed of companies outside trendy sectors with straightforward business models in traditional industries like cement, food, and glass. While potentially sacrificing returns by not investing in high-profile names, the manager prefers confidence and stability over chasing winners. |
Traditional Industries Value Cement Food Glass | |
CopperWithout copper, there is no electrification, digitalization, AI, or data centers. Each megawatt of data center capacity requires roughly 30 tons of copper. With 10,000 MW added annually, this amounts to approximately 300,000 tons. Even minor supply deficits in an already tight market can trigger significant price volatility, reinforcing a structural, long-term bullish outlook. |
Electrification Data Centers Supply Deficit Structural Demand | |
Data CentersData centers are industrial facilities that require copper, steel, cement, concrete, and energy. Each megawatt of capacity requires tons of copper, cooling systems, and diesel backup generators. The cloud is not ethereal—it is heavy industry. The real beneficiaries are indirect players: industrial manufacturers, component distributors, and raw material suppliers. |
Industrial Facilities Heavy Industry Infrastructure Raw Materials | |
| 2025 Q3 |
Gold MinersGold miners position rose 45.87% in Q3 and has more than doubled since inception, appreciating over 120%. However, margin of safety is gradually narrowing with some miners trading at demanding multiples. Manager expects strong Q4 earnings and will consider selling the ETF at year-end for attractive revaluation. |
Gold Mining ETF Valuation Margins |
ValueManager maintains focus on companies with solid fundamentals that remain undervalued relative to intrinsic worth. Emphasizes choosing better companies at fair prices rather than fair companies at wonderful prices, citing Warren Buffett's wisdom about buying wonderful companies at fair prices versus fair companies at wonderful prices. |
Undervalued Fundamentals Intrinsic Quality Multiples | |
| 2025 Q2 |
ValueManager focuses on undervalued companies trading below intrinsic worth, emphasizing normalized P/E ratios and margin of safety. Caltagirone trades at just 6.6x normalized P/E despite strong operational performance. Portfolio companies exhibit robust fundamental qualities and remain undervalued relative to intrinsic worth. |
Undervalued Intrinsic Margin of safety P/E ratio Fundamentals |
Small CapsPortfolio concentrated in small and micro-cap companies across Europe and globally. Manager emphasizes the importance of patience when investing in less liquid, small- and micro-cap companies. European small-cap stocks particularly attractive due to relatively lower valuations. |
Small-cap Micro-cap Liquidity European Patience | |
GoldGold remains important component of portfolio performance with investment thesis intact. Despite narrowing spread between gold miners and physical gold, manager continues to hold position. Investor demand remains strong with net inflows into gold ETFs approaching $40 billion year-to-date. |
Gold ETFs Physical gold Miners Demand | |
| 2025 Q1 |
GoldGold delivered exceptional returns driven by heightened uncertainty, escalating trade tensions, and inflationary pressures. Gold prices rose approximately 14% during the quarter, with significant capital inflows into gold-linked ETFs contributing to a 27.5% increase in mining company positions. |
Gold Mining Inflation Uncertainty ETFs |
Trade PolicyThe Trump administration's confrontational approach to global trade impacted both allies and adversaries, creating significant uncertainty among investors and business leaders. Tariffs were announced but not yet enacted, with the manager believing they will be significantly reduced or rescinded. |
Tariffs Trade Policy Uncertainty Negotiation | |
Small CapsThe portfolio focuses on small-cap companies with strong fundamentals, particularly in Europe. New positions were initiated in Polish small-cap Toya and Italian luxury yacht manufacturer Sanlorenzo, both exhibiting robust financial fundamentals and management alignment. |
Small Cap Europe Poland Italy Fundamentals | |
ValueThe manager emphasizes independent thinking and fundamental analysis to identify undervalued companies trading below intrinsic value. Companies in the portfolio continue to demonstrate solid business fundamentals while trading at attractive valuation multiples. |
Value Undervalued Fundamentals Independent Analysis | |
| 2024 Q4 |
ValuePortfolio focuses on undervalued companies trading at attractive multiples with strong fundamentals. Orsero trades at 8x P/E, Sanlorenzo at appealing multiples despite sector undervaluation, and Olvi at attractive multiples with scenarios showing upside potential. |
Undervalued Multiples Fundamentals P/E Upside |
Small CapsPortfolio consists of small-cap European companies including Orsero with €226 million market cap and other small-cap positions. Manager focuses on small-cap opportunities across European markets with concentrated positioning. |
Small-cap European Concentrated Market Cap Positioning | |
LuxurySanlorenzo is a leader in luxury yacht manufacturing with considerable growth potential. Strong demand from Ultra High Net Worth Individuals and limited supply in luxury yacht sector support continued growth with record backlog of €1.72 billion. |
Yacht Ultra High Net Worth Backlog Manufacturing Growth | |
| 2024 Q3 |
ValueManager focuses on undervalued companies trading below intrinsic value, using metrics like P/B and P/E ratios. Orsero trades at 0.84 P/B ratio and 6x P/E versus sector average of 16x. Portfolio targets companies with strong fundamentals at attractive valuations. |
Undervalued P/B Ratio P/E Ratio Intrinsic Value Discounted Cash Flow |
Small CapsPortfolio consists of eight small-cap companies with market capitalizations like Orsero at €225 million. Manager acknowledges potential liquidity constraints due to smaller size but sees compelling long-term opportunities in this segment. |
Small Cap Market Capitalization Liquidity Constraints Long-term Opportunities | |
EuropeStrong focus on European investments including Italian company Orsero, Finnish beverage company Olvi, and Italian luxury yacht manufacturer Sanlorenzo. Manager specifically mentions monitoring opportunities in Europe going forward. |
European Investments Italy Finland Regional Focus | |
| 2024 Q2 |
GoldAdded Junior Gold Mining ETF which contributed over 17% to quarterly profitability with 24.23% YTD return. Global demand for gold persists amid political tensions, ongoing inflation, and declining real interest rates creating favorable environment. |
Gold Miners Junior Miners ETFs Inflation |
Small CapsPortfolio focuses on small-cap companies which continue to underperform large-caps. Manager maintains disciplined approach seeking undervalued opportunities in European and Australian small-cap markets. |
Value Europe Australia | |
| 2024 Q1 |
Small CapsThe portfolio focuses on small and mid-cap companies across European and US markets, a sector that has been grappling with ongoing challenges and subdued performance in recent periods. The manager emphasizes that direct comparisons to broader indices are inappropriate due to the distinctive composition of the small-cap focused portfolio. |
Small Caps Value Europe United States |
ValueThe manager draws inspiration from Peter Lynch's wisdom that undervalued opportunities often reside within seemingly mundane businesses. The investment approach actively seeks investments insulated from market speculation, focusing on long-term value creation with discipline and patience. |
Value Quality Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 8, 2026 | Fund Letters | Smallvalue | SFM | Sprouts Farmers Market | Grocery Stores | Food & Staples Retailing | Bear | NASDAQ | grocery, Natural Foods, Organic, Overvaluation, profit-taking, retail, Value trap | Login |
| Apr 8, 2026 | Fund Letters | Smallvalue | ORO.MI | Orsero | Other | Food Products | Bull | Borsa Istanbul | Bananas, Citrus, Distribution, Fleet renewal, Fresh Produce, Italy, Logistics, Shipping | Login |
| Apr 8, 2026 | Fund Letters | Smallvalue | VID.MC | Vidrala | Packaging & Containers | Containers & Packaging | Bull | New York Stock Exchange | Brazil, Glass Containers, margin expansion, Natural Gas Hedging, Packaging, Share Buybacks, Spain | Login |
| Jan 6, 2026 | Fund Letters | David Pintado | SFM | Sprouts Farmers Market Inc | Consumer Staples | Food Retail | Bull | NASDAQ | buybacks, cashflow, expansion, grocery, Margins | Login |
| Oct 3, 2025 | Fund Letters | David Pintado | ORS | Orsero S.p.A. | Utilities | Food Distribution | Bull | - | Distribution, Europe, Food, fundamentals, growth, Margins | Login |
| Oct 3, 2025 | Fund Letters | David Pintado | RGG | Ringmetall AG | Real Estate | Industrial Packaging | Bull | - | Acquisitions, FCF, Industrials, manufacturing, Niche, Packaging | Login |
| Oct 3, 2025 | Fund Letters | David Pintado | SLR | Sanlorenzo S.p.A. | Materials | Leisure Products | Bull | - | growth, Italy, Luxury, manufacturing, premium, Yachts | Login |
| Oct 3, 2025 | Fund Letters | David Pintado | MAMA | Mama’s Creations Inc. | Consumer Staples | Packaged Foods | Bull | NASDAQ | consumer, Food, growth, Packaged goods, retail | Login |
| Jul 2, 2025 | Fund Letters | Smallvalue | TOYA.WA | Toya S.A. | Consumer Discretionary | Specialty Retail | Bull | Warsaw Stock Exchange | cash flow generation, Consumer Goods Distribution, Emerging markets, Export Growth, Geographic Diversification, margin expansion, Polish Retailer | Login |
| Jul 2, 2025 | Fund Letters | Smallvalue | CAL.MI | Caltagirone SpA | Materials | Construction Materials | Bull | Borsa Italiana | Diversified Holding Company, Family-Controlled Business, Financial Stakes, Italian Conglomerate, net cash position, real estate portfolio, Value Investment, White Cement Leader | Login |
| Jul 2, 2025 | Fund Letters | Smallvalue | ORO.MI | Orsero SpA | Consumer Staples | Food Distributors | Bull | Borsa Italiana | cash generation, European markets, Fresh Produce Distribution, infrastructure investment, margin expansion, Premium Fruit Mix, Working Capital Management | Login |
| Apr 8, 2025 | Fund Letters | Smallvalue | SL | Sanlorenzo S.p.A. | Consumer Discretionary | Leisure Products | Bull | Borsa Italiana | debt-free, insider buying, Italian, Luxury, management ownership, manufacturing, Order Backlog, premium, undervalued, Yacht | Login |
| Apr 8, 2025 | Fund Letters | Smallvalue | TOA | Toya | Consumer Discretionary | Specialty Retail | Bull | Warsaw Stock Exchange | Distribution, e-commerce, Global, Import, Polish, share repurchase, small-cap, Tools, undervalued, Value | Login |
| Jan 6, 2025 | Fund Letters | Smallvalue | SL.MI | Sanlorenzo S.p.A. | Consumer Discretionary | Leisure Products | Bull | Borsa Italiana | Geographic Expansion, Luxury yachts, management ownership, Record Backlog, Sustainable Luxury, Ultra High Net Worth, Zero Debt | Login |
| Jan 6, 2025 | Fund Letters | Smallvalue | ORS.MI | Orsero S.p.A. | Consumer Staples | Food Distributors | Bull | Borsa Italiana | cash flow generation, food distribution, Fresh Produce, insider ownership, Italian Small-Cap, shareholder returns, Value | Login |
| Jan 6, 2025 | Fund Letters | Smallvalue | OLVAS.HE | Olvi Oyj | Consumer Staples | Brewers | Bull | Helsinki Stock Exchange | Baltic Region, Defensive Consumer Staples, Finnish Beverages, geopolitical impact, high-ROIC, net cash, Value | Login |
| Oct 10, 2024 | Fund Letters | Smallvalue | ORS.MI | Orsero S.p.A. | Consumer Staples | Food Distributors | Bull | Borsa Italiana | European, food distribution, Fresh Produce, insider ownership, Italian, small-cap, undervalued, Value | Login |
| Oct 10, 2024 | Fund Letters | Smallvalue | OLVAS.HE | Olvi Oyj | Consumer Staples | Brewers | Bull | Helsinki Stock Exchange | Baltic Region, Beverages, Finnish, geopolitical impact, net cash, Strong ROIC, Value, War Impact | Login |
| Oct 10, 2024 | Fund Letters | Smallvalue | SL.MI | Sanlorenzo S.p.A. | Consumer Discretionary | Leisure Products | Bull | Borsa Italiana | acquisition, Asia-Pacific Expansion, EBITDA growth, growth, Italian, Luxury yachts, management ownership, Zero Debt | Login |
| Jul 12, 2024 | Fund Letters | Smallvalue | GDXJ | VanEck Junior Gold Miners ETF | Materials | Gold | Bull | NYSE Arca | ETF, geopolitical tensions, Gold, inflation hedge, Interest rates, junior miners, M&A activity, materials, Precious Metals | Login |
| Jul 12, 2024 | Fund Letters | Smallvalue | TGYM.MI | Technogym | Consumer Discretionary | Leisure Products | Neutral | Borsa Italiana | capital reallocation, Consumer Discretionary, fitness equipment, Gym Equipment, high valuation, Italian Company, margin of safety | Login |
| Jul 12, 2024 | Fund Letters | Smallvalue | UAA | Under Armour | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bear | NYSE | Apparel, Competitive Disadvantage, Consumer Discretionary, Inventory Issues, margin compression, Sportswear, turnaround, Value trap | Login |
| TICKER | COMMENTARY |
|---|---|
| SFM | During this period, the capital allocated here could have been deployed in other opportunities with higher upside potential, allowing the portfolio to capture greater growth. Sprouts' fundamentals remained solid, and still are, yet its share price surged sharply, rising from $24 to over $170. In hindsight, the $170 valuation was excessive, trading above 35x earnings without clear justification. The prudent course would have been to reduce or exit the position, but I held on and experienced a significant decline. The new price target for Sprouts is $110, well below $170. |
| GDXJ | Junior Gold Miners ETF represents 28.56% of capital allocation. Mining stocks contributed 1.39% positive returns during the quarter. |
| ORO.MI | Orsero, the largest detractor in the portfolio, reported FY results showing robust underlying performance despite market pressures. Net sales reached €1.70 billion, up 8.2% year-over-year, driven by Distribution (+8.3%) through higher volumes and a favourable price/mix across berries, fresh-cut produce, kiwi, and citrus. Adjusted EBITDA rose 3.8% to €86.9 million, with a margin of 5.1%. Over the quarter, Orsero declined 19%. |
| VID.MC | Vidrala also weighed on portfolio performance, despite reporting resilient operational and financial results in a challenging macroeconomic environment. Net sales reached €1,465.2 million, reflecting an organic decline of 5.4%. EBITDA totalled €441.0 million, with a margin of 30.1%, up 152 basis points year-over-year. Vidrala fell 15% during the quarter. The recent share price decline could be primarily attributed to a ~80% increase in natural gas prices; however, Vidrala is fully hedged for 2026, with around 80% of its exposure secured through 2027. |
| SAN.MI | Sanlorenzo advanced 1.65% during the quarter. |
| OLVI.HE | Olvi Oyj increased 8.61% during the quarter. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
