| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 20.7% | - | 23.5% |
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 23.5% | 17.9% | 35.8% | -6.8% |
Tapasya Investment Fund I delivered strong performance in 2025 with 23.5% net returns, extending their lead over the S&P 500's 17.9% return. The fund's core thesis centers on concentrated investments in high-quality businesses at fair valuations, employing value-based investing principles with global diversification across the US, Europe, and Asia. Top contributors included Alphabet, Prosus, and Carvana, while the fund added new positions in Interactive Brokers, Global-E, and Adobe. The manager extensively addresses AI bubble concerns, noting extremely stretched valuations in semiconductors and AI hardware while avoiding these sectors due to cash flow uncertainty. The homebuilder sector remains challenged by affordability issues despite the fund's conviction in Builder FirstSource. Portfolio changes included a 6.9% turnover rate with strategic exits from underperforming positions. The fund adopted more capital-efficient liquidity management, deploying uninvested cash into broad indices rather than holding idle cash. With structural patience and deep fundamental research as competitive advantages, the manager expects continued long-term outperformance despite potential short-term volatility in current complex macroeconomic conditions.
Concentrated investments in high-quality businesses at fair valuations can outperform indices over the long term through patient capital deployment and fundamental research.
The manager expects long-term success from their value-based approach despite potential short-term underperformance during periods of extreme sectoral valuation surges. They anticipate Builder FirstSource will perform well once the housing market rebounds, and maintain conviction in their concentrated portfolio of high-quality businesses.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 6 2026 | 2025 Q4 | 0700.HK, ADBE, ADYEN.AS, BABA, BLDR, CMG, CVNA, FNMA, GLBE, GOOG, IBKR, LULU, PRX.AS, UMG.AS | AI, Concentration, global, Homebuilders, long-term, Quality, technology, value | - | The manager extensively discusses whether we are in an AI bubble, noting that AI appears to be the most significant digital disruptor of our lifetime.… |
| Jul 2 2025 | 2025 Q2 | - | - | - | - |
| Jan 8 2025 | 2024 Q4 | - | - | - | - |
| Jul 2 2024 | 2024 Q2 | - | - | - | - |
| Jul 2 2024 | 2024 Q2 | - | - | - | - |
| Jan 4 2024 | 2023 Q4 | - | - | - | - |
| Jan 4 2024 | 2023 Q4 | - | - | - | - |
| Jul 10 2023 | 2023 Q2 | - | - | - | - |
| Jul 10 2023 | 2023 Q2 | - | - | - | - |
| Jan 3 2023 | 2022 Q4 | - | - | - | - |
| Jan 3 2023 | 2022 Q4 | - | - | - | - |
| Sep 10 2022 | 2022 Q2 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
HomebuildersDespite near-term housing market challenges from affordability issues and buyer/seller strikes, there is structural underinvestment in housing relative to demographic needs. US builds same number of homes today as 1960 despite 160 million more people. Fund sees long-term bullish opportunity in companies like Toll Brothers and Champion Homes as housing market rebounds. |
Affordability Demographics Structural Shortage Millennials Manufactured | |
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 |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 0700.HK | Shinya also visited Shenzhen, where Star Magnolia Capital organized an educational visit for our families to Tencent's headquarters, alongside meetings with several promising early-stage companies. |
| ADBE | By looking at their Rnancials, FactSet, PayPal, Adobe, and Salesforce seem to be doing Rne. The market, however, is reading subdued revenue growth as a sign of increased competition on their core oSerings. These companies' outlooks look more di'cult than their past. |
| BABA | our Asian investments performed strongly with Alibaba and Jardine Matheson up 63% |
| BLDR | This is the largest supplier of building materials in the United States. They sell lumber and prefabricated products such as trusses and millwork to homebuilders, often helping the builders improve efficiency. The company has been buying up industry competitors. We bought a small amount of stock in 2024 at the price of US$149 per share. I estimated this represented approximately 12 times earnings. However, lumber prices and home building activity are cyclical, and both continued to decline from elevated levels after the COVID-19 crisis. I still like the company and the investment idea. I think the company will benefit from continued industry consolidation. The stock is currently trading at US$105 which is about 17 times earnings. I believe the company's earnings could be temporarily depressed but we have not yet bought more shares. Builders FirstSource is now one of our smallest investments. |
| CMG | The top-five detractors from returns were Fiserv, Chipotle, Constellation Software, Roper, and Floor & Décor. In the quarter, we exited Fiserv, Chipotle, and monday.com. |
| CVNA | Our portfolio looks very skewed to Carvana, but that is a feature of the strategy – to let winners run. We did not buy Carvana at this size; it is this size because it is up 100x from its 2022 lows. Carvana uses its technology to manage pricing, logistics, inspections, reconditioning workflow, merchandising, and more. These are all cogs in the industrial machine it has assembled to buy and sell cars to end customers. Significant proprietary technology has been developed to enable Carvana's retail and wholesale operations. Because Carvana is digitally native and has significant size and scale, it has been able to invest in significantly more technology than other auto dealers. |
| FNMA | Fannie and Freddie shares more than tripled in 2025 as the Trump administration reiterated its commitment to an eventual privatization. The administration has repeatedly emphasized three key objectives: Enhance home affordability by compressing the spread of mortgages over Treasuries, Demonstrate a near-term mark to market for the taxpayers' ownership in the GSEs, Maximize long-term value of the taxpayers' interest in Fannie and Freddie. |
| GLBE | We also invested in Global E Online (GLBE), an Israel-based company. GLBE currently constitutes about 3% of the portfolio, and I anticipate this percentage will increase over time. |
| GOOG | Alphabet's Q4 performance marks a significant triumph, characterized by a rare beat and raise narrative across all critical business segments. The company's recent earnings report was driven by a balanced contribution from its legacy Search and YouTube divisions, with Google Cloud emerging as the standout performer. Cloud's revenue growth reached an impressive 34%, and it boasts an extraordinary $155 billion backlog, a nearly double increase compared to the previous quarter. This remarkable transformation has propelled Cloud from a margin drag to a high-octane profit center. |
| IBKR | Interactive Brokers saw weakness amid interest-rate uncertainty. |
| LULU | This downward pressure was partially mitigated by the 28% increase in Lululemon's stock from our purchase price of $162 per share. |
| PRX.AS | Prosus is a core, long-term holding primarily valued for its substantial stake in Tencent, a company we believe has significant growth potential and a strong global competitive advantage. A key element of our thesis is that Prosus's current market capitalization is less than the value of its Tencent holding alone. In addition to the Tencent stake, Prosus holds an estimated $35 billion in other listed and unlisted assets. |
| UMG.AS | UMG is a high-quality, capital-light, rapidly growing royalty on greater music consumption. 'Streaming 2.0' deals, which incorporate wholesale price increases, should lead to higher subscription revenue growth. New partners and product tiers should allow for better customer segmentation. AI can be a further tailwind to growth. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| No Recent Buys Data | |||||
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