| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.88% | 0% | 0% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 11.9% | 4.8% | 19.6% | -33.4% | 38.2% | 30.5% |
Dr. Mathias Saggau's Partners Fund delivered 11.90% returns in 2025 but underperformed the DAX by 11.11%, extending a four-year period of relative underperformance that tests investor patience. The fund maintains a concentrated portfolio of 15 European companies, with the top 10 positions representing 80% of assets. Key return drivers include significant share buyback programs across multiple holdings, with Virgin Wines repurchasing 10% of shares, DCC buying back 12%, and Naked Wines retiring 7% of outstanding shares. The manager views these buybacks at depressed valuations as highly value-creating. Major risks include market concerns about AI disruption affecting comparison portal businesses, leading to sector-wide declines of 30-50%. However, Saggau believes the market is overreacting and underestimates management adaptability. Catalysts include corporate restructuring at conglomerates DCC and Associated British Foods to unlock value, plus management changes at underperforming holdings Tucows and Naked Wines. The manager expresses optimism that current low valuations create a spring-like tension that will eventually rebound as intrinsic value is recognized.
Concentrated value investing in European small and mid-cap companies with reasonable business models, competitive advantages, and rational management available at attractive prices, with particular focus on situations where share buybacks and corporate actions can unlock value.
Manager expresses optimism about future prospects despite recent underperformance, noting that economic substance of companies has developed better than share prices suggest. Expects value creation from ongoing share buybacks, corporate restructurings, and management changes to eventually be reflected in share prices as valuations act like a mechanical spring building tension.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 3 2026 | 2025 Q4 | ABF.L, DCC.L, FERG.L, FPE3.DE, MWG.L, TCX, UTDI.DE, VWPL.L, WINE.L | AI, Buybacks, Conglomerates, Europe, underperformance, value |
VINO LN CHG GR DCC LN ABF LN WINE US TCX US |
European value fund underperformed in 2025 despite 11.90% gains, extending four-year relative weakness. Manager remains optimistic, citing extensive share buybacks across portfolio companies at attractive valuations as key value driver. Believes market overreacting to AI concerns in platform businesses. Corporate restructuring catalysts at major holdings should unlock value over time as current low valuations create rebound potential. |
| Jul 30 2025 | 2025 Q3 | ABF.L, DCC.L, FERG, FPE3.DE, MWG.L, TCX, UTDI.DE, WINE.L | Cyclical, Europe, long-term, Patience, Quality, value |
WINE LN FERG LN |
Partners Fund gained 17.32% in H1 2025, demonstrating recovery after difficult years. The disciplined value approach focuses on quality companies with competitive advantages at reasonable prices. Portfolio includes European e-commerce leader Moltiply and U.S. infrastructure play Ferguson. Manager emphasizes patience and cyclical thinking, believing current attractive valuations position the fund well for long-term outperformance as market dynamics evolve. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
BuybacksMultiple portfolio companies executed significant share repurchase programs in 2025, with Virgin Wines repurchasing 10% of shares, DCC buying back 12% through tender offer, Associated British Foods repurchasing 5%, and Naked Wines retiring 7% of shares. Manager views these buybacks at low valuations as value-creating for shareholders. |
Share Repurchases Capital Allocation Value Creation Tender Offers |
AIManager discusses market concerns that comparison portal business models will be negatively impacted by increasing use of artificial intelligence. Views current share price declines in companies like Moltiply Group as market overreaction to AI buzzword rather than real operational decline. |
Artificial Intelligence Platform Business Market Overreaction Technology Disruption | |
ValueFund focuses on companies trading below intrinsic value, with several holdings described as net-net situations where market capitalization trades below cash holdings. Manager emphasizes purchasing companies at reasonable prices as core investment principle and sees current low valuations as creating mechanical spring effect for future returns. |
Net Net Intrinsic Value Undervaluation Benjamin Graham | |
| 2025 Q3 |
E-commerceThe fund examines digital transformation through companies like Moltiply and Naked Wines. Moltiply successfully expanded from Italian mortgage brokerage to European price comparison platforms, acquiring Verivox in Germany. Naked Wines struggled with aggressive U.S. expansion during COVID but shows recovery signs under new management. |
Digital transformation Price comparison Direct-to-consumer Online platforms Market expansion |
ValueThe manager emphasizes disciplined value investing principles, seeking companies with reasonable business models, competitive advantages, and rational management at reasonable prices. The portfolio is described as more attractively valued today than ten years ago, with operating results driving price developments rather than multiple expansion. |
Value investing Intrinsic value Disciplined approach Attractive valuations Operating results | |
QualityFocus on companies with sustainable competitive advantages and excellent management teams. Examples include Ferguson's structural stability in U.S. plumbing distribution and DCC's robust cash flows. The manager emphasizes trust in management teams like Moltiply's founders for their strategic excellence and long-term vision. |
Competitive advantages Management quality Structural stability Cash flows Strategic excellence |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 3, 2026 | Fund Letters | Mathias Saggau | VINO LN | Virgin Wines UK plc | Consumer Staples | Distillers & Vintners | Bull | New York Stock Exchange | ecommerce, operating leverage, recurring revenue, Subscription, valuation | Login |
| Feb 3, 2026 | Fund Letters | Mathias Saggau | CHG GR | CHAPTERS Group AG | Information Technology | IT Consulting & Other Services | Bull | Xetra | Acquisitions, capital allocation, compounding, serial acquirer, Software | Login |
| Feb 3, 2026 | Fund Letters | Mathias Saggau | DCC LN | DCC plc | Industrials | Industrial Conglomerates | Bull | New York Stock Exchange | Acquisitions, cashflow, diversification, resilience, valuation | Login |
| Feb 3, 2026 | Fund Letters | Mathias Saggau | ABF LN | Associated British Foods plc | Consumer Staples | Packaged Foods & Meats | Bull | New York Stock Exchange | balance sheet, consumer staples, diversification, recovery, retail | Login |
| Feb 3, 2026 | Fund Letters | Mathias Saggau | WINE US | Naked Wines plc | Consumer Staples | Distillers & Vintners | Bull | Dubai Financial Market | ecommerce, Marketing efficiency, Subscription, turnaround, valuation | Login |
| Feb 3, 2026 | Fund Letters | Mathias Saggau | TCX US | Tucows Inc. | Communication Services | Internet Services & Infrastructure | Bull | NASDAQ | Domains, infrastructure, recurring revenue, Telecom, valuation | Login |
| Jul 30, 2025 | Fund Letters | Mathias Saggau | WINE LN | Naked Wines plc | Consumer Staples | Internet & Direct Marketing Retail | Bear | NYSE | Digitalization, Discipline, Inventory, profitability, turnaround | Login |
| Jul 30, 2025 | Fund Letters | Mathias Saggau | FERG LN | Ferguson plc | Industrials | Industrial Distribution | Bull | NYSE | cashflow, compounding, Distribution, Renovation, scale | Login |
| TICKER | COMMENTARY |
|---|---|
| ABF.L | Associated British Foods (+4 %). Both DCC and Associated British Foods are companies that would commonly be described as conglomerates. Both companies announced in 2025 that they are planning to split themselves to achieve a better valuation of the individual parts in the capital markets. In addition, Associated British Foods repurchased around 5 % of its own shares in 2025. |
| DCC.L | DCC is a former conglomerate that is in the process of selling non-core businesses to focus on its core propane energy distribution business. DCC's core energy business has performed well historically, and the business has multiple organic and inorganic opportunities. The company has been using proceeds from the various divestitures to repurchase stock and could ultimately purchase ~25% of outstanding shares once the various sales are completed. DCC expects medium-term growth of 9%+. We estimate that the core energy business is trading for ~6.6x FY 2026 EBITDA, a discount to more leveraged peers. |
| FPE3.DE | Fuchs (−6 %) ended the year with sometimes significant price declines. Fuchs SE fell out of the top 10 due to weak share-price performance but remains part of the portfolio. |
| MWG.L | Midwich Group (−36 %) ended the year with sometimes significant price declines. |
| TCX | Tucows currently rank among the weakest investments the Partners Fund has made to date in its ten years of existance. At Tucows, five of the eight supervisory board positions were newly appointed in May of this year. In November, the company also announced that its long-standing CEO and founder Elliot Noss would step down from his position and that David Woroch would assume operational management going forward. From an external perspective, the company faces several challenges that must be resolved step by step and in different ways. On the one hand, a solution must be found for the highly indebted and loss-making Ting Internet business segment. |
| UTDI.DE | United Internet (+ 77 %) recorded strong price gains. Shares in United Internet were sold at a profit. |
| VWPL.L | Virgin Wines started as a small addition to the portfolio, stemming from my long-standing involvement with Naked Wines. At the beginning of 2025, the market capitalisation of Virgin Wines was at times significantly below the freely available excess cash. The operating business could therefore effectively be acquired at a negative purchase price – a near-classic 'net-net' situation in the sense of Benjamin Graham. Since this capital markets day in March, the company has repurchased around 10 % of the outstanding shares, thereby significantly increasing our economic interest in the company. The share price developed very positively in 2025, rising by around 86 %. |
| WINE.L | Naked Wines (+54 %) recorded strong price gains. At the beginning of the year, Naked Wines' market capitalisation stood at around £33 million. When publishing its figures, the company reported that, as of March 2025, cash holdings already amounted to around £33 million. In addition, cash inflows of approximately £40 million are expected over the few coming years from the reduction of excess inventory. Beyond this, the operating business is expected to generate a further £30 million of free funds within a few years. Using the available free funds and the capital released from inventory reduction, the company began extensive share buy-backs after publication of the annual figures in the summer. In total, Naked Wines has repurchased around five million shares, approximately 7 % of the total share capital since the beginning of the year. Against this backdrop, the shares increased in value by around 54 % over the course of the year. |
| 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 | |||
