| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 23% |
Rozendal Partners delivered strong absolute and relative returns in the first half of 2025, with the Global Fund returning 23% versus 10.2% for the benchmark. The outperformance was driven by underweight US positioning during Trump's tariff-induced market volatility and strong performance from satellite company SES, which benefited from spectrum sales and European defense spending. The firm completed its Turkish investment cycle, exiting positions in Migros, Sabanci, and Coca Cola Icecek after successfully navigating the country's hyperinflationary period. Key contributors included SES, Prosus, and Naked Wines, while detractors included Kaspi, Noble, and Coca Cola Icecek. The manager also exited Alphamin due to escalating security risks in the Democratic Republic of Congo, demonstrating disciplined risk management. Looking forward, Rozendal maintains its bottom-up value approach while planning to launch a globally unconstrained strategy to capture broader opportunities. The firm continues to focus on quality businesses trading at discounts during periods of macroeconomic stress.
Bottom-up value investing in quality businesses trading at discounts to fair value, with particular focus on companies in countries experiencing macroeconomic turmoil that creates temporary mispricing opportunities.
The manager expresses measured optimism about global opportunities while maintaining disciplined approach to risk management. Plans to launch globally unconstrained strategy to capture broader range of opportunities beyond current fund mandates.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 30 2025 | 2025 Q2 | AFM.L, AST.JO, B4B.DE, BLU.JO, CCOLA.IS, COH.JO, HCI.JO, HL.L, KSPI.L, MTN.JO, NE, NPK.JO, OCE.JO, PRX.AS, SESG.PA, WINE.L | defense, emerging markets, global, Mining, Satellites, tariffs, Turkey, value | - | Rozendal delivered 23% returns in H1 2025 versus 10.2% benchmark, benefiting from underweight US positioning during tariff volatility. Completed successful Turkish investment cycle during hyperinflationary period. SES doubled on spectrum sales and defense spending. Exited Alphamin on security risks. Maintains disciplined value approach while planning globally unconstrained strategy launch. |
| Jan 28 2025 | 2024 Q4 | AFE.JO, BLU.JO, BUR.L, GDR.JO, HCI.JO, JD, MDIA3.SA, META, NE, PIK.JO, PPC.JO, SESG.PA, SHP.JO, TBS.JO, TSCO.L | global, retail, stock selection, technology, underperformance, value | - | Rozendal Global Fund underperformed significantly in 2024 due to limited US exposure during a year dominated by American technology and financial stocks. While Meta and Tesco contributed positively, oil services and emerging market holdings detracted. The managers completed several investment cycles and maintain their disciplined fundamental approach despite disappointing short-term results. |
| Jul 30 2024 | 2024 Q2 | 0700.HK, B4B.DE, BAYN.DE, CGR.JO, HCI.JO, HL.L, KSPI, MDIA3.SA, META, MTN.JO, NPK.JO, NPN.JO, PPC.JO | global, Market Efficiency, Passive investing, technology, Turnarounds, value | - | Rozendal delivered modest gains but lagged benchmarks in H1 2024, hurt by avoiding US tech momentum. Meta and Hargreaves Lansdown drove gains while Bayer and Metro continued disappointing. The managers defend value investing against passive investing critics, arguing patient fundamental analysis remains viable through cash flow focus rather than multiple expansion dependence. |
| Jan 29 2024 | 2023 Q4 | B4B.DE, BAYN.DE, BUR.L, CCJ, CCOLA.IS, COH.JO, MTN.JO, NVDA, PPCT.JO, RCL.JO, TBS.JO | emerging markets, global, South Africa, technology, Turkey, uranium, value | - | Rozendal delivered 21.6% returns in 2023 through concentrated positions in uranium recovery, litigation finance, and emerging market companies with strong management. The fund's macro analysis favors emerging market debt over US treasuries based on superior fiscal metrics. Key theme is identifying quality businesses that can outperform despite challenging macroeconomic conditions through conservative management and strategic positioning. |
| Jun 30 2023 | 2023 Q2 | B4B.DE, BLU.JO, BUR.L, CCO, GEMD.L, HCI.JO, HOLD.IS, MCF.L, MDC.L, META, OCE.JO, PPC.JO, RCL.JO, SDRY.L, SUR.JO, TBS.JO | global, Litigation, South Africa, takeovers, technology, uranium, value | - | Rozendal delivered strong H1 2023 performance with successful turnarounds in Meta and Burford Capital, uranium exposure via Cameco, and completed takeovers of Micro Focus and Mediclinic. The firm continues expanding litigation funding investments while maintaining disciplined value approach across global and South African markets, acknowledging higher cash yields but remaining focused on equity mispricings. |
| Dec 31 2022 | 2022 Q4 | BLU SJ, BUR, JDC GR, MAERSK/B PZ, META, OCE SJ, QUINENC CI, TBS SJ, YRK SJ | - | - | |
| Jun 30 2022 | 2022 Q2 | AAL LN, HCI, LKOH RM, META, MNT SJ, NPN SJ, PPC SJ, QNCO IT, WINE LN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q2 |
TurkeyCompleted investment cycle in three Turkish companies (Migros, Sabanci, Coca Cola Icecek) during hyperinflationary period. Turkey's unorthodox monetary policy created opportunities as negative real interest rates drove consumption boom. Exited positions as valuations reached fair value and real interest rates turned positive. |
Hyperinflation Consumption Monetary Policy Emerging Markets Currency |
TariffsTrump's Liberation Day tariffs caused market volatility with S&P 500 declining 19% before recovering. Historical analysis suggests tariffs have relatively minor long-term impacts on GDP, inflation, and equity markets despite short-term headline attention. |
Trade Policy Volatility Market Impact Historical Analysis | |
SatellitesSES benefited from multiple positive developments including potential C-band spectrum sales to US FCC, Intelsat acquisition providing access to additional spectrum proceeds, and increased European defense spending on satellite communications services. |
Defense Spending Spectrum Communications European Defense | |
MiningAlphamin tin mining investment delivered strong returns despite operating in conflict-ridden DRC. Exited position due to escalating regional security risks near mining operations. Demonstrates importance of risk management in unstable jurisdictions. |
Tin Security Risk Commodity Africa Risk Management | |
| 2024 Q4 |
LitigationBurford Capital operates in the litigation funding market, which offers attractive long-term growth prospects and favorable economics. The business provides capital to fund legal expenses in return for a share of proceeds, with returns typically around 30% internal rates of return. However, the company's high cost structure limits profitability of third-party asset management. |
Legal Funding Returns Capital Assets |
CommoditiesWheat futures presented an attractive short opportunity following Russia's invasion of Ukraine, which caused prices to reach extreme levels. The fund successfully traded wheat futures as supply disruptions created temporary price dislocations that eventually normalized as higher prices encouraged new production and reduced consumption. |
Wheat Futures Supply Disruption Trading | |
RetailAnalysis of Pick n Pay versus Shoprite reveals how operational execution, cost management, and capital allocation drive long-term performance in grocery retail. Shoprite's focus on low prices, efficient operations, and aggressive reinvestment contrasted with Pick n Pay's higher costs and generous dividend policy, leading to divergent outcomes. |
Grocery Operations Costs Competition Management | |
TechnologyMeta Platforms served as the sole representative of the Magnificent Seven in the Global Fund and has been a significant contributor to returns. The business successfully overcame challenges including Apple's app tracking transparency measures, cost structure issues, and new social media competitors. |
Meta Social Platforms Digital Advertising | |
| 2024 Q2 |
ValueThe letter extensively discusses value investing philosophy and challenges, including David Einhorn's assertion that market structures are broken and value investing is dead due to passive investing. The managers defend value investing, arguing that patient fundamental investors can still profit through cash flow generation rather than just multiple re-rating. |
Value investing Multiple expansion Cash flows Fundamental analysis Mean reversion |
TechnologyTechnology sector performance dominated markets with large cap tech shares continuing their strong march. Meta Platforms was highlighted as the sole FAANG representative in the portfolio, delivering strong returns after being heavily hit in 2022 but recovering with fivefold gains from the bottom. |
Technology FAANG Large cap tech Meta Platforms Sector performance | |
| 2023 Q4 |
UraniumThe uranium market has finally come to life after being moribund for a decade following Fukushima. Disruptions from the Russian invasion of Ukraine, slow return to production of mothballed mines, steady continuation of new reactors being built in China, and greater recognition of uranium's clean energy benefits have contributed to dramatic price surges reaching levels last seen in 2007. |
Nuclear Energy Transition Commodities China Russia |
Emerging marketsEmerging market debt offers a more favorable combination of macroeconomic support and relative pricing than US debt. The analysis shows emerging markets have lower debt-to-GDP ratios, better fiscal discipline, stronger growth, and more attractive valuations despite higher inflation volatility. |
Debt Inflation Growth Currencies Valuations | |
| 2023 Q2 |
LitigationRozendal invests in litigation funding through RLF, comparing the field to private equity in the 1980s with vast untapped market potential. They have committed 3% of hedge fund assets to litigation funding across five direct matters and two class action suits in South Africa. |
Litigation Legal Funding Risk |
UraniumCameco benefited from the West moving away from Russian uranium supplies and increased favorable sentiment toward nuclear energy following Russia-Ukraine conflict disruptions. Utilities began concluding longer-term purchase contracts after years of hesitation. |
Uranium Nuclear Energy Geopolitical | |
MetaMeta transformed from a leading detractor to star performer following cost cutting and capital expenditure reductions. The market responded favorably to management's disciplined approach to expenses and investment spending. |
Technology Cost Efficiency Turnaround |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| SESG.PA | Satellite business SES has been a holding in the Global Fund for several years. In an industry facing increasing low-cost competition, SES has been struggling. But some very positive recent developments caused the share price to more than double in the first six months of the year. Firstly, it appears that the Federal Communications Commission of the US wants to buy more C-band spectrum from companies like SES. Earlier sales of this spectrum have been very lucrative. Secondly, SES agreed to acquire competitor Intelsat. On the face of it, this was not a very exciting deal. But Intelsat also holds substantial C-band spectrum, and as part of the transaction SES is entitled to a large part of the proceeds of any sale of this spectrum. And finally, there has been general market enthusiasm for European defence businesses. SES delivers satellite communications services to the military. As a European company, SES may well benefit from increased European defence spending on services from European (as opposed to American) companies. The market certainly seems to be expecting as much! |
| PRX.AS | The dire investor pessimism which has characterised the Chinese market for the past several years has started to lift. This, along with continued solid operating results, has caused a rise in the share price of Tencent. Tencent still constitutes by far the majority of Prosus' assets, and Prosus' share price has followed that of Tencent upward. However, recent results have shown that the other businesses in the Prosus stable are developing very positively. Group operating profit has exceeded expectations. This has raised the share price of Prosus beyond what can merely be attributed to Tencent's contribution. |
| WINE.L | As an online, subscription-based wine club business, Naked Wines grew spectacularly during Covid. It acquired customers hand over fist. But these customers have proven to be of poor quality. The churn of these customers out of the customer base – and the reset of the business to a smaller base level size – has been traumatic. The balance sheet has experienced substantial pressure. Recently though, a seasoned new management team was appointed, and the business has stabilised. Successful liquidation of inventories at satisfactory prices has strengthened the balance sheet – to the point where there is now talk of share buybacks and dividends. This positive inflection in the direction of travel for the business has been handsomely reflected in the share price recently. |
| KSPI.L | Kaspi is a fantastic business that dominates the online retail, fintech and payments landscape of its home market, Kazakhstan. It has domestic growth runway left, but the lure of a much larger market has been too hard to resist. Late in 2024 it announced the acquisition of a controlling stake in Turkish online retailer Hepsiburada. This was followed by the acquisition of Rabobank's Turkish operations. These moves have been met with some scepticism by the market: offshore expansion by retailers and banks have historically not been a sure-fire recipe for success. On top of this, Turkey is going through a period of macroeconomic consolidation, in which consumer businesses like retailers and banks are likely to find business challenging. Kaspi's 2024 financial results – reported in February - slightly missed market expectations. This also impacted the share price negatively. |
| NE | The oil price has been weak. Noble's share price has been weaker. Such is life for a business that earns its livelihood in a commodity-linked industry. A slowdown of exploration and development spending on the part of oil majors has been felt in the offshore drilling rig industry. Noble's acquisition of Diamond Offshore is being integrated well, but in the short term, oil price moves tend to overwhelm the impact of operational performance on Noble's share price. |
| CCOLA.IS | Coca Cola Icecek is the last of the Global Fund's Turkish investments. We cover all of these in more depth later in this letter. Coca Cola Icecek has been a fantastic investment for the Global Fund but delivered a somewhat unsavoury parting gift: a US dollar share price decline of almost 20% in our last six weeks odd of ownership. This is aligned with the recent overall performance of the Turkish market. However, given its longer-term contribution to the Global Fund, we will forgive Coca Cola Icecek this minor indiscretion. |
| AFM.L | At the time of our initial interest in Alphamin, it was a single mine, single resource tin miner operating in the conflict-ridden North Kivu province of the Democratic Republic of Congo. In typical mining fashion, developing this first mine in the Bisie tin complex (from 2015 to 2019) had taken longer and cost more than initially promised. And due to early production problems, an inordinate amount of tin had been going to waste in tailings. There was a lot not to like about Alphamin. However, there were also several things to like about Alphamin. The Bisie resource was (and remains) world class, both in size, grade and cost of production. Unfortunately though, so was the regional conflict. Hostilities had historically occurred at a safe distance from Alphamin's mines and had not caused disruption to the company's operations. But early in 2025, media outlets started reporting on a concerning advance of insurgents much closer to Alphamin's mines. This prompted us to reassess the risk of the investment. Our conclusion was that the risk reward proposition was no longer attractive. In recognition of the risky nature of the investment, Alphamin had never been a large position in the Global Fund. Even so, we decided to sell out of Alphamin in full by the end of January 2025. |
| 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 | |||
