| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| 2025 |
|---|
| -2.9% |
The Compounding Tortoise posted a -2.85% return in EUR for 2025 but maintains focus on long-term value creation through quality growth companies. The manager emphasizes that underlying business fundamentals remain strong, with portfolio-weighted NOPAT per share growth of 12.5% per annum over two years versus 24.6% for S&P 500 operating EPS growth. The investment approach centers on companies with high returns on incremental invested capital, good growth, and embedded optionality. Portfolio-weighted projected returns over 10 years now exceed 13%, suggesting better buying opportunities than a year ago. For 2026, the manager expects portfolio-weighted earnings growth of about 16% supported by low-30s percent ROIIC. Holdings include HEICO, Brown & Brown, Terravest Industries, and TJX. The strategy focuses on investments that pay off quickly with managers who have meaningful skin in the game, acknowledging that finding companies meeting all quality growth criteria remains challenging, especially at attractive prices.
Focus on quality growth companies with high returns on incremental invested capital, sustainable earnings growth in the mid-teens percent, and embedded optionality that becomes more valuable over time.
The manager expects portfolio-weighted earnings growth of about 16% for 2026, supported by low-30s percent ROIIC. The portfolio-weighted projected return over a 10-year horizon is now above 13%, indicating better buying opportunities than 12 months ago.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 5 2026 | 2025 Q4 | BRO, HEI, TJX, TVK.TO | earnings, growth, long-term, Quality, Roiic, value | - | The manager focuses on companies with high returns on incremental invested capital, good growth, and embedded optionality. Portfolio-weighted NOPAT per share growth has been 12.5%… |
| Oct 1 2025 | 2025 Q3 | - | Compounding, Concentration, earnings growth, Return on Capital, valuation | - | The letter discusses a long-term compounding strategy centered on high-return, efficiently managed businesses despite short-term volatility. Management emphasizes valuation discipline and patience, focusing on earnings… |
| Jul 11 2025 | 2025 Q2 | - | - | - | - |
| Apr 11 2025 | 2025 Q1 | - | - | - | - |
| Jan 17 2025 | 2024 Q4 | - | - | - | - |
| Oct 3 2024 | 2024 Q3 | - | - | - | - |
| Jul 3 2024 | 2024 Q2 | - | - | - | - |
| Apr 4 2024 | 2024 Q1 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
EarningsEarnings are central to the manager's optimism with consensus expectations pointing to meaningful acceleration in small-cap earnings in 2026, with growth projected in the low-to-mid teens and exceeding that of large-cap companies. This anticipated rebound reflects easier year-over-year comparisons, improving operating leverage, and broadening demand across cyclical and value-oriented sectors. |
Earnings Growth Operating Leverage Cyclical Sectors Consensus Estimates Earnings Revisions |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
| 2025 Q3 |
SpaceSpaceX is generating significant value with rapid expansion of Starlink broadband service, deploying vast satellite constellation with substantial user growth. The company has established itself as leading launch provider with reusable technology and is making tremendous progress on Starship rocket. SpaceX represents the fund's largest position at 19.2% of net assets. |
Satellites Launch Starlink Starship Reusable |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| BRO | In 2026, we plan to publish deep dives on Brown & Brown |
| HEI | We've held HEI since early 2021. It's one of those quietly excellent family businesses. The Mendelsons have run it for decades, they own a meaningful stake, and they've built durable niches in aerospace parts and defense electronics. HEI was up 36% in 2025, hitting new highs on strong results across both their Flight Support and Electronic Technologies divisions. They keep doing what they do: disciplined acquisitions, high returns on capital, strong cash generation. |
| TJX | TJX Companies, an off-price retailer, delivered solid third-quarter results and had a strong start to the fourth quarter as better merchandise availability yielded broader and higher-quality assortments that supported traffic, same-store sales and earnings growth. |
| TVK.TO | TerraVest Industries, TFI International and Loblaw Companies were the top contributors to performance. TerraVest Industries struggled for the first half of the quarter before a materially better second half. The company released strong fourth quarter earnings with sales for Q4 and FY2025 up 82% and 50% year-over-year. The board of directors declared a dividend increase of 14% over the prior quarterly dividend in mid-December during the latest quarterly earnings. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||
