Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 20.5% | -5.0% | 36.1% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 20.5% | -5.0% | 36.1% |
Atai Capital Management declined 5.0% in Q4 2025 net of fees, underperforming benchmarks but delivering strong full-year returns of 36.1%. The concentrated micro and small-cap strategy naturally diverges from indexes, with ~60% of the portfolio in sub-$500M market cap businesses. Key portfolio moves included selling Bel Fuse after nearly three years of ownership, adding to Kitwave Group before its acquisition, and exiting EG7 at a loss. The fund maintains a larger than normal cash position due to strong 2025 performance and difficulty finding attractive opportunities at the required pace. Recent macroeconomic shocks have created price declines that could present new investment opportunities. The manager continues evolving toward higher quality names while maintaining core investment philosophy of favoring lost opportunity cost over potential capital loss from mediocre ideas. The fund increased its AUM cap from $50M to $100M to accommodate larger allocations without hindering the ability to invest in smaller opportunities.
Concentrated micro and small-cap investing focused on quality businesses trading below intrinsic value, with patient capital deployment and rigorous idea selection prioritizing opportunity cost over mediocre investments.
The manager maintains the same views over the past three years and will continue to favor lost opportunity cost over potential capital loss from mediocre ideas. While diligently working to find new ideas, the current market environment is far from fertile for idea generation, but when good ideas eventually arise, excess capital will be deployed.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Mar 10 2026 | 2025 Q4 | BELFB, BKTI, EGAM, HAI.TO, KITW.L | Concentration, Microcap, Objectivity, Philosophy, Quality, small caps | - | The fund operates a concentrated Micro and Small-Cap strategy that naturally diverges from market indexes. Approximately 60% of the portfolio consists of businesses with market… |
| Dec 2 2025 | 2025 Q3 | BKTI | management, Margins, pricingpower, SmallCaps, turnaround | - | Atai emphasizes the scarcity of attractive small-cap opportunities in the U.S. while highlighting a concentrated portfolio focused on operational turnarounds and management excellence. BK Technologies… |
| Aug 14 2025 | 2025 Q2 | ALOT, CABO | Concentration, learning, Micro Caps, Patience, Valuation discipline | - | The letter discusses outsized performance driven by concentrated micro- and small-cap investments. Management reflects on both successes and mistakes, emphasizing learning, patience, and valuation discipline.… |
| May 20 2025 | 2025 Q1 | ALOT | - | - | - |
| Feb 18 2025 | 2024 Q4 | ALOT | - | - | - |
| Nov 12 2024 | 2024 Q3 | HAI CN | - | - | - |
| Aug 22 2024 | 2024 Q2 | ALOT, EG7 SS | - | - | - |
| May 16 2024 | 2024 Q1 | EG7 SS, TPB | - | - | - |
| Jan 16 2024 | 2023 Q4 | ALOT | - | - | - |
| Nov 29 2023 | 2023 Q3 | BELFB, EG7 SS | - | - | - |
| Dec 7 2023 | 2023 Q2 | 7CD GR, ALOT, ATVI, BF2B GR | - | - | - |
| Apr 13 2023 | 2023 Q1 | ALOT, ATVI, CABO, CHTR, CMCSA | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
QualityThe portfolio has shifted toward higher quality businesses with better profitability, lower leverage, and less volatile earnings. Quality stocks underperformed significantly in 2025, creating attractive entry points for value investors. The manager maintains price discipline while seeking quality companies trading at discounts to intrinsic value. |
Quality Profitability Leverage Earnings |
Small CapsThe fund invests in a portfolio of competitively advantaged small and medium-sized businesses, which remained out of favor for most of the quarter. The strategy of owning leading small-cap businesses has been the foundation since inception, delivering 354 basis points of annual outperformance over the benchmark since inception despite recent headwinds. |
Growth Outperformance Benchmark Russell Businesses | |
| 2025 Q3 |
Small CapsThe fund invests in a portfolio of competitively advantaged small and medium-sized businesses, which remained out of favor for most of the quarter. The strategy of owning leading small-cap businesses has been the foundation since inception, delivering 354 basis points of annual outperformance over the benchmark since inception despite recent headwinds. |
Growth Outperformance Benchmark Russell Businesses |
| 2025 Q2 |
MicroCap |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| BELFB | The portfolio's top contributor for the quarter was Bel Fuse, which we subsequently sold out of entirely after owning shares, in varying sizes, for nearly three years. If given the opportunity to own Bel Fuse at a more reasonable price, we would not hesitate to be shareholders again. |
| BKTI | Notable detractors for the quarter included our largest position, which we are not disclosing at this time, and BKTI. |
| EGAM | Additionally, we sold out of our remaining position in EG7 at a loss, as our thesis has not played out as expected. |
| HAI.TO | Additionally, we are off to a strong start this year, with Kitwave being acquired, Haivision rallying significantly, and selling out of a few smaller positions. |
| KITW.L | During the quarter, we added to our position in Kitwave Group, a previously undisclosed position that has since been acquired and is no longer in the portfolio. While we are happy to have one of our larger positions acquired, the premium at which it was acquired significantly undervalued the business in our opinion. |
| 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 | |||