| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 13.2% | 53.1% |
| 2025 | 2024 |
|---|---|
| 53.1% | 22.3% |
Blue Tower Global Value delivered exceptional performance in 2025, gaining 53.11% net for the year with Q4 contributing 13.15% net. The strategy focuses on global value investing, with major contributors including Enova (up 64%) and Georgia Capital (up 178%). Enova, a rapidly growing fintech, announced the transformative acquisition of Grasshopper Bank for $369M, expected to be highly accretive with EPS increases exceeding 25% once synergies are realized. The acquisition pairs Enova's lending platform with a full-service digital bank, creating vertical integration and new product opportunities. Georgia Capital, a Georgian conglomerate, benefited from strong economic growth, aggressive share buybacks, and NAV increases of 41% in nine months. The manager believes historical headwinds from value underperformance have turned into tailwinds, with valuation spreads at historic extremes. He sees AI as genuinely innovative with measurable productivity gains of 1.1% already documented. The portfolio remains attractively valued despite strong performance, with Enova trading at 9x 2027 earnings estimates and Georgia Capital at a discount to NAV.
Blue Tower pursues a global value investing strategy, focusing on undervalued companies with strong fundamentals and capital return programs, particularly benefiting from the current extreme valuation spreads between cheap and expensive stocks.
The manager is optimistic about 2026, believing that previous headwinds from value underperformance and US market outperformance have now turned into tailwinds. He sees AI as having true innovation potential with measurable productivity impacts that will increase as better tools become available.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 12 2026 | 2025 Q4 | 4028.T, BELFB, CGEO.L, ENVA, WCC | AI, Banking, Buybacks, Fintech, growth, international, productivity, value |
ENVA CGEO LN |
Blue Tower focuses on value investing with international diversification. The manager notes that the valuation spread between cheap and expensive stocks is one of the… |
| Oct 25 2025 | 2025 Q3 | - | De-dollarization, fiscal policy, Global Trade, gold, valuation |
CGEO LN CGEO LN |
The letter discussed the global shift away from U.S. dollar dependence, with countries increasing gold reserves and using local currencies for trade settlement. Management warned… |
| Jul 29 2025 | 2025 Q2 | TBCG LN | Digital Banking, emerging markets, frontier markets, ROE, valuation | - | The commentary focuses on frontier and emerging market opportunities where governance improvements intersect with strong growth. The case study on Georgian and Uzbek banking highlights… |
| Apr 30 2025 | 2025 Q1 | - | - | - | - |
| Jan 25 2025 | 2024 Q4 | - | - | - | - |
| Oct 12 2024 | 2024 Q3 | ENVA, WCC | - | - | - |
| Jul 13 2022 | 2024 Q2 | 0CUN LN, CGEO LN | - | - | - |
| Apr 28 2024 | 2024 Q1 | BERY, SCHW | - | - | - |
| Jan 20 2024 | 2023 Q4 | CGEO LN, CNR, EWZ GR, EZPW, MASI, TCSN MM | - | - | - |
| Oct 21 2023 | 2023 Q3 | - | - | - | - |
| Jul 22 2023 | 2023 Q2 | TCSA LN | - | - | - |
| Apr 15 2023 | 2023 Q1 | LEN, SBER RU, SCHW | - | - | - |
| Jan 20 2023 | 2022 Q4 | - | - | - | - |
| Aug 10 2022 | 2022 Q3 | ENVA | - | - | - |
| 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 |
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 | |
FinTechThe fund continues its growth approach to investing in financial and financial-related companies, including payment businesses, financial exchanges, and data providers that enable financial transactions. The common denominator across all holdings is the use of technology and data to better serve customers and grow at above-average rates. |
Payments Digital Banking Financial Technology Data Analytics Financial Software | |
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 |
GoldGold reached record highs above $5,000 per ounce but silver's dramatic rally has triggered a sell signal. Historical pattern suggests both metals may enter 2-3 year correction period. Central bank demand remained strong at 863 tonnes for 2025, though China purchases slowed significantly. |
Precious Central Banks ETFs Debasement |
| 2025 Q2 |
FrontierMarkets |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 25, 2025 | Fund Letters | Andrew Oskoui | CGEO LN | Georgia Capital | Financials | Investment Holding Companies | Bull | NYSE | buybacks, conglomerate, discount, diversification, Emerging markets, NAV, valuation | Login |
| Oct 25, 2025 | Fund Letters | Andrew Oskoui | CGEO LN | Georgia Capital | Financials | Investment Holding Companies | Bull | NYSE | buybacks, conglomerate, discount, diversification, Emerging markets, NAV, valuation | Login |
| Jan 12, 2026 | Fund Letters | Andrew Oskoui | ENVA | Enova International, Inc. | Financials | Consumer Finance | Bull | New York Stock Exchange | Accretion, buybacks, Deposits, Fintech, Margins, underwriting | Login |
| Jan 12, 2026 | Fund Letters | Andrew Oskoui | CGEO LN | Georgia Capital PLC | Financials | Diversified Financials | Bull | New York Stock Exchange | buybacks, conglomerate, deleveraging, NAV, undervaluation | Login |
| TICKER | COMMENTARY |
|---|---|
| 4028.T | We should also give recognition to Wesco International (NYSE:WCC), Bel Fuse Inc (Nasdaq:BELFB), and Ishihara Sangyo Kaisha (Tokyo:4028) which all had great 2025 returns even though they were smaller positions in Blue Tower's portfolio. |
| 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. |
| CGEO.L | Included at 1020p back in Happy Christmas Reader at 3105p that's a triple bagger. 19% gain in 2024 and 159% in 2025. The NAV at that point was £27.14 per share. Today it's £41.47. The share remains at a 24.5% discount despite a storming performance in 2025. Yes the share has risen 160% but remains very attractive where the private businesses are valued at only 7.1X to 9.9X earnings. |
| ENVA | Enova continued growing organically in 2025. Year-over-year originations grew by 22% in Q3 2025. They have added new retail and business borrowers and their underwriting algorithms are continuously updated. Machine learning models are retrained frequently (in some cases daily), and these models drive their underwriting decisions (85% of which are completely automated). Their models materially improve repayment predictability versus bureau scores alone. And most importantly, the information in their customer databases continues to accumulate, which is the fuel for their data-driven underwriting process. They also continued with their share buybacks, reducing share count more than 5% over 12 months from 26.27M in Q3 2024 to 24.88M shares in Q3 2025. These buybacks have been ongoing for several years. At the beginning of Q3 2021, they were at 36.87M shares. The biggest jump in stock price came in December after Enova announced the acquisition of Grasshopper Bank. This acquisition has the potential to be particularly transformative due to the synergies between the two companies. Enova is paying Grasshopper $369M in cash and stock for the acquisition (Enova ended the year with a market cap of $4.4B). Despite the increased share count, the transaction is expected to be accretive to EPS. The guidance from Enova is that once the synergies are fully realized beyond the first year, they expect EPS increase attributable to this acquisition to be greater than 25%. Enova is a rapidly growing fintech that has returned capital through buybacks and has a long runway of future growth ahead of it. It is amazing that even after the recent share price increase, the stock can still be purchased for 9x the consensus estimate of their FY2027 earnings. |
| WCC | Electrical products distributor WESCO International outperformed in Q4 after reporting solid Q3 results and raising 2025 guidance. Better-than-expected organic growth was driven by its rapidly expanding data center business, which reached nearly 20% of total revenue. |
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