| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 0% |
Caledonia Investments is a self-managed investment company with £3.0bn in net assets, targeting long-term compounding real returns of inflation plus 3-6% annually. The firm operates a diversified strategy across three main pillars: public companies (35% allocation), private capital (30% allocation), and fund investments (29% allocation). The private equity strategy focuses heavily on North American lower mid-market companies with $2-10m EBITDA, capitalizing on a fragmented market of ~400,000 addressable companies. The firm emphasizes operational value creation through professionalisation, acquisitions, and margin enhancement. In Asia, Caledonia targets the growing middle class representing 60% of global population by 2030, with exposure to industrial innovation trends. The North America portfolio has delivered strong returns of 19.8% annualised over 3 years across 45 companies, while the Asia portfolio spans 385 companies but faces near-term headwinds from constrained IPO activity. The firm maintains 58 consecutive years of dividend increases and has outperformed inflation by 6.5% annually over the past decade.
Caledonia operates as a diversified investment company targeting long-term compounding returns through exposure to quality companies across public markets, private capital, and fund investments, with particular focus on North American lower mid-market opportunities and Asian growth markets.
The firm maintains a long-term investment approach focused on compounding returns through quality company investments. North America continues to offer attractive lower mid-market opportunities with favorable valuations and lower leverage. Asia presents structural growth opportunities despite near-term exit challenges.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 27 2026 | 2025 Q4 | CLDN.L | Asia, diversification, Mid-market, North America, private equity, value creation | - | Caledonia Investments operates a diversified £3.0bn investment strategy targeting inflation-plus returns through North American lower mid-market private equity and Asian growth opportunities. The firm emphasizes operational value creation in fragmented markets, delivering strong long-term performance with 58 consecutive dividend increases while maintaining exposure to structural growth themes across both regions. |
| Nov 25 2025 | 2025 Q3 | BABA, BTI, CHTR, CRDA.L, DGE.L, FAST, HILS.L, MCO, MSFT, ORCL, PM, POOL, REL.L, SCHW, SGE.L, SPX.L, TMO, TXN, WSO | AI, diversification, global, Private Capital, Public Companies, technology | - | Caledonia delivered 4.4% NAV return driven by strong Public Companies and Private Capital performance. AI-driven technology gains and Stonehage Fleming sale at 3.2x cost highlight patient capital approach. Permanent balance sheet enabled opportunistic deployment during market volatility. Despite macroeconomic uncertainty and sector discount pressures, diversified global portfolio and £430m liquidity position the firm well for long-term value creation. |
| Mar 31 2024 | 2024 Q4 | 7181.T, HOLX | AI, energy, healthcare, Japan, private equity, Take-privates | - | BXPE delivered 3.9% Q3 returns through record $1.3B deployment across high-conviction themes including AI, energy transition, and large take-privates. Strong operating performance drove broad-based portfolio appreciation with 80% of investments gaining value. Strategic investments in OpenAI, Anthropic, and major take-privates of TechnoPro and Hologic position the fund for continued growth as market conditions improve. |
| Mar 31 2023 | 2023 Q4 | 004020.KS, 009540.KS, 028260.KS, 090430.KS, 4527.T, 9301.T, C011.HK, CDI.PA, ENT.L, GXI.DE, MC.PA, NWSA, REA.AX, VIV.PA | discount, Governance, Holdings, Korea, NAV, value | NWSA | AVI Global Trust focuses on companies trading at deep discounts to net asset value. Building Korean exposure to 9.5% of NAV, capitalizing on governance reforms with 68% of KOSPI below book value. News Corp remains core holding despite recent weakness, with REA stake providing compelling value unlock potential following Murdoch family succession resolution. |
| Mar 31 2022 | 2022 Q4 | - | Balance Sheet Strength, Capital Allocation, Inflation Resilience, Market Dislocation, private markets | - | |
| Mar 31 2021 | 2021 Q4 | - | Capital Allocation, Diversified portfolio, Long-Term Compounding, Net Asset Value Growth, Private Capital | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Small CapsThe fund operates a concentrated Micro and Small-Cap strategy that naturally diverges from market indexes. Portfolio consists of ~60% businesses with market caps below $500M, with top five positions accounting for ~60% of the portfolio. |
Microcap Small Cap Concentration |
ValueManager emphasizes finding great ideas at reasonable prices and waiting for attractive valuations. Sold Bel Fuse after three years but would buy again at more reasonable prices. Kitwave acquisition significantly undervalued the business in their opinion. |
Valuation Price Undervalued | |
| 2025 Q3 |
AIStrong performance from Oracle, Microsoft and Alibaba Group driven by their cloud businesses and AI-related services. Oracle's share price rose sharply following AI-related announcements which led to significant re-rating of shares. AI developments are creating opportunities across technology holdings. |
Cloud Technology Software Growth |
Private CapitalPrivate Capital pool delivered 7.7% return driven by agreed sale of Stonehage Fleming and operational performance from AIR-serv. Strategy focuses on cash generative businesses with strong growth potential in UK mid-market. Portfolio valued using earnings multiples in range of 10 to 14.5 times EBITDA. |
Mid Market UK Growth Value Creation | |
DiversificationPortfolio diversified across three pools: Public Companies (35%), Private Capital (30%), and Funds (29%). Geographic diversification with 46.5% North America, 34.9% UK & Channel Islands, 10.5% Asia, 8.1% Europe. Strategy provides well-balanced global portfolio managing risk through diversification. |
Global Risk Management Asset Allocation Balance | |
| 2024 Q4 |
AIBlackstone continues to focus on the picks and shovels of AI through infrastructure investments such as chips and data centers, while the market's maturation has opened the door for measured exposure to the application layer. BXPE invested in OpenAI and Anthropic — two category-defining AI research labs with complementary strategies in consumer and enterprise use cases. |
Data Centers OpenAI Anthropic Infrastructure Applications |
Energy TransitionAfter two decades of stagnation, US electricity demand is projected to rise by 40% over the next 10 years. One key reason is data centers, where over 80% of hyperscalers and operators cite power availability as their top growth constraint. Electrification and reshoring of manufacturing are also fueling this secular trend. |
Electricity Demand Data Centers Electrification Power Grid | |
DigitizationDigitization — investments tied to the global shift online — was a top contributor, accounting for 21% of Q3 performance. This theme represents the ongoing digital transformation across various industries and business models. |
Digital Transformation Online Technology Software Digital | |
| 2023 Q4 |
South KoreaBuilding exposure to Korea due to corporate governance reform agenda and deeply undervalued companies. Korean names have contributed +1.1% to NAV with weighted average total return of +25%. 68% of KOSPI index still trading below book value and 61% without sell-side coverage. |
Corporate Governance Value Reform Discount Undervalued |
ValueFocus on companies trading at discount to estimated underlying net asset value. News Corp trading at significant discount with REA stake accounting for 75% of market cap. Amorepacific Holdings trading on widest ever discount of 52%. |
Discount NAV Undervalued Asset Value Mispriced |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 31, 2025 | Fund Letters | Caledonia Investment | NWSA | News Corp | Communication Services | Publishing | Bull | NASDAQ | Asset Spin-off, Australia, discount to NAV, Family Trust, holding company, information services, media, Publishing, turnaround, value unlock | Login |
| TICKER | COMMENTARY |
|---|---|
| CLDN.L | Self-managed investment company with £3.0bn NAV and 58 consecutive dividend increases. Strong consistent long term NAV growth with target return of inflation +3% to +6%. Outperforming inflation by 6.5% p.a. over the last decade. |
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