| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.9% | - | 11.9% |
| 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 |
Multiple portfolio companies executed significant share repurchase programs in 2025, including Virgin Wines repurchasing 10% of shares, DCC buying back 12% through tender offer, Associated… |
| Jul 30 2025 | 2025 Q3 | FERG, MNL GR, WINE LN | fundamentals, pricingpower, Quality, Resilience, ROIC |
WINE LN FERG LN |
The letter stresses the advantage of owning structurally advantaged companies with stable business models, disciplined management, and predictable earnings. The manager argues that quality franchises… |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
BuybacksShare repurchases in 2024 and 2025 hit consecutive records as companies raced to meet Tokyo Stock Exchange capital efficiency mandates. Buybacks were a primary driver of the market's 20% climb in the first half of FY2025. |
Share Repurchases Capital Efficiency TSE Mandates Shareholder Returns Records | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
ChinaChina's economic rebalancing appears to be moving forward. Market liquidity, anti-involution and a measured consumer policy are likely to drive a sustained market performance in 4Q. Fiscal support and ongoing reforms in China is supportive of a stronger currency. |
Growth Policy Currency |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| 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 |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
