| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
This is the final communication from Centerstone Investors Fund, announcing the formal closure of the fund effective January 9, 2026. All outstanding shares, including the manager's shares, will be converted into shares of FPA Crescent Fund as part of an approved transaction. The manager expresses gratitude to shareholders for their trust over the years and emphasizes that the partnership was grounded in patience, discipline, and a long-term perspective. The letter highlights that FPA Crescent's investment philosophy and structure reflect many of the same principles that guided Centerstone, positioning shareholders well for the future under new management and governance. This represents a complete wind-down of Centerstone Investors Fund as a separate investment vehicle, with shareholders transitioning to direct ownership of FPA Crescent shares. The manager acknowledges the privilege of serving as a steward of shareholder capital and thanks investors for their confidence, engagement, and support throughout the fund's existence.
Fund closure and conversion to FPA Crescent Fund
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| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 8 2026 | 2026 Q1 | - | - | - | Centerstone Investors Fund is closing effective January 9, 2026, with all shares converting to FPA Crescent Fund. The manager thanks shareholders for their trust and emphasizes that FPA Crescent's philosophy aligns with Centerstone's principles of patience, discipline, and long-term perspective, positioning shareholders well for the transition. |
| Jan 9 2026 | 2025 Q4 | - | Conversion, Fund Closure, Transition | - | Centerstone Investors Fund converts to FPA Crescent Fund on January 9, 2026. Manager Abhay thanks shareholders for their trust and emphasizes that FPA Crescent shares similar investment principles of patience, discipline, and long-term perspective. Shareholders are positioned to continue under FPA Crescent's management with aligned investment philosophy and governance structure. |
| Oct 16 2025 | 2025 Q3 | - | Fed, gold, inflation, international, rates, Treasuries, value | - | Value investing conditions improved in Q3 2025 with lower rates and stable growth supporting value stocks, international equities, and gold. However, with equity P/E multiples near all-time highs and concerning data quality issues, longer-term Treasuries now offer compelling relative value at 4% yields versus vulnerable equity markets. Time to join the bondwagon. |
| Jun 30 2025 | 2025 Q2 | AI.PA, ERF.PA, ISS.CO, LOOM-B.ST | Cash, Currency, Europe, Foreign, gold, uncertainty, value |
ISS DC AI FP |
Centerstone benefits from European equity exposure and gold holdings amid market uncertainty. The fund targets discounted foreign companies like ISS and Air Liquide positioned for deglobalization. Higher cash reserves provide flexibility given weakening economic indicators and elevated valuations. Core philosophy remains unchanged: invest in good businesses at reasonable prices. |
| Mar 31 2025 | 2025 Q1 | BARN.SW, NESN.SW | contrarian, Food, Foreign, gold, mid cap, Trade Policy, volatility |
NESN.SW BARN.SW |
Centerstone's contrarian strategy delivered modest Q1 gains through gold exposure and foreign equities as US market premium eroded. The fund maintains focus on mid-cap companies with strong balance sheets like Nestle and Barry Callebaut, both facing temporary headwinds but offering compelling value. Expects continued volatility from political turbulence while remaining patient and selective. |
| Dec 31 2024 | 2024 Q4 | NESN.SW, OR.PA | consumer, contrarian, Europe, Food, global, value | NESN.SW | Centerstone sees compelling contrarian value in European markets trading at half US valuations. Recent purchase Nestle exemplifies the opportunity - down 40% from peak, trading at 16x earnings with 4% yield. Despite political upheaval and liquidity challenges creating volatility, manager believes quality companies will emerge stronger long-term when buying low rather than high. |
| Sep 30 2024 | 2024 Q3 | 0388.HK, 0700.HK, 1299.HK | Asia, China, Fed policy, gold, monetary policy, value | 1299.HK | Centerstone warns of potential Fed policy errors while accumulating beaten-down Asian equities. The firm bought AIA Group, Tencent, and Hong Kong Exchanges after four years of declines left quality companies trading at attractive valuations. Gold's 27% rise reflects policy uncertainty and sovereign buying. Manager sees opportunity in washed-out Hong Kong markets despite broader macro concerns. |
| Jun 30 2024 | 2024 Q2 | 1299.HK, DIS | Asia, Europe, Franchises, mid cap, neglect, value |
BARN.SW WLN.PA 1299.HK DIS |
Centerstone targets neglected mid-cap franchise businesses trading below intrinsic value as markets focus on mega-caps. Recent additions span chocolate manufacturing, European payments, Asian insurance, and entertainment. Despite geopolitical risks and economic uncertainty, the manager believes these quality companies with strong market positions and shareholder-focused management will demonstrate their resilience and value over time. |
| Mar 31 2024 | 2024 Q1 | PLUX.PA, SW.PA | Asia, China, gold, Hong Kong, Spin-Offs, value | SW.PA | Centerstone sees opportunity in overlooked Asian markets, particularly China and Hong Kong, where regulatory improvements and low valuations contrast with negative sentiment. The fund may increase Hong Kong exposure over mainland China. Gold provides portfolio diversification through its non-correlation and money supply growth tailwind. Recent Sodexo spin-off Pluxee offers attractive employee benefits market exposure. |
| Dec 31 2023 | 2023 Q4 | 4958.T, 6501.T, ERF.PA, RYA.L | cycle, Franchise, global, Non-US, value |
4958.T 6501.T ERF.PA RYA.L |
Centerstone believes value investing is returning to niche status after mainstream adoption reduced opportunities. The fund targets franchise-like companies with defensive characteristics trading at discounts, including T Hasegawa, Hitachi, Eurofins, and Ryanair. Manager expects foreign economic recovery to reverse earnings divergence versus US markets, benefiting non-US value strategies. |
| Sep 30 2023 | 2023 Q3 | DG, FLT | Economic Cycles, Franchises, Intrinsic Value, Margin Of Safety, Recession, value |
CFLT 0TDG LN |
Centerstone emphasizes margin of safety investing amid economic uncertainty, evolving toward higher quality franchise businesses. New positions include FleetCor Technologies, a digital payments provider with difficult-to-replicate network advantages, and Dollar General, which operates a scale economics shared model across rural America. Despite near-term consumer pressures, the team continues seeking businesses trading below intrinsic value. |
| Jun 30 2023 | 2023 Q2 | NVDA, ORLY, SWON.SW | AI, Auto Aftermarket, Banking, China, international, value |
AVGO|BYD|CRWD|MELI|MSFT|NFLX|NVDA|NVO|ORLY|SPOT SWON.SW |
Centerstone sees the end of US market dominance and growing opportunities in international value investing. Despite Q2 headwinds from China reopening disappointment and AI bubble dynamics, the firm maintains conviction in quality companies like O'Reilly Automotive and SoftwareOne. Banking risks persist but equities remain attractive with improving international fundamentals supporting their global value strategy. |
| Mar 31 2023 | 2023 Q1 | AI.PA, IAA, RBA | Banking, international, Quality, risk management, value |
AI.PA IAA |
Centerstone navigates banking sector stress by focusing on quality companies with strong management, competitive moats, and conservative balance sheets. Holdings like Air Liquide and IAA exemplify asset-light, cash-generative businesses that don't require constant market access. Recent bank failures may be isolated given the dollar hasn't spiked, but uncertainty remains high. |
| Dec 31 2022 | 2022 Q4 | - | - | - | |
| Sep 30 2022 | 2022 Q3 | - | - | - | |
| Jun 30 2022 | 2022 Q2 | - | - | - | |
| Mar 31 2022 | 2022 Q1 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q3 |
ValueValue stocks performed well during Q3 2025, benefiting from lower interest rates and stable economic conditions. The manager notes this was a welcome change from post-Covid patterns where value had struggled. |
Value Investing Outperformance Interest Rates Economic Stability |
RatesFederal Reserve has scope to reduce interest rates due to weaker economic data revisions. Lower rates created favorable conditions for equity markets and risk assets. Long-term Treasury yields may need reassessment given data inaccuracies. |
Federal Reserve Rate Cuts Treasury Yields Monetary Policy Economic Data | |
GoldGold rose during the third quarter alongside value stocks and international equities, benefiting from the favorable macro environment of lower interest rates and economic stability. |
Gold Risk Assets Macro Environment | |
| 2025 Q2 |
GoldGold serves as a hedge against uncertainty in the portfolio. The manager notes that uncertainty manifests in various forms including inflation, deflation, and currency devaluations, and while the specific reasons for gold's movements are only clear in hindsight, uncertainty will always persist making gold a permanent portfolio component. |
Gold Hedge Uncertainty Inflation Currency |
EuropeThe fund maintains significant exposure to European equities, benefiting from foreign currency exposure and investing in strong European companies trading at discounts to US counterparts. European holdings include local operators like ISS, Air Liquide, Eurofins, and Loomis that are positioned to benefit from deglobalization trends. |
Europe Foreign Currency Discount Local | |
| 2025 Q1 |
GoldThe Fund benefitted significantly from its gold position during Q1 2025 when gold surpassed $3,000 per ounce. Gold's reputation as a safe haven in times of uncertainty likely played a role in this increase, aligning with the fund's long-standing strategy centered on gold, cash and foreign equities. |
Gold Safe Haven Precious Metals Commodities Volatility |
Trade PolicyThe manager discusses ongoing tariff proposals and their potential impact on portfolio companies. Many companies face direct impacts from tariff threats, though some like Nestle are largely insulated due to local manufacturing presence. The broader global realignment and evolving US foreign and trade policies represent a new order that will take time to materialize. |
Tariffs Trade War Protectionism Global Trade Policy | |
FoodThe portfolio includes consumer food companies like Nestle and Barry Callebaut facing various challenges. Nestle operates across value-priced to premium food products with strong local manufacturing, while Barry Callebaut dominates chocolate production but faces steep cocoa price increases. Both represent contrarian opportunities in the food sector. |
Consumer Staples Food Manufacturing Brands Pricing Power Consumer | |
| 2024 Q4 |
ValueEuropean markets trade at roughly half the valuation of US counterparts with double the dividend yield. Nestle trades at 16x earnings with 4% dividend yield, down 40% from peak. Manager emphasizes buying low rather than high for long-term returns. |
Valuation Dividends Europe Contrarian Long-term |
EuropeEuropean markets significantly underperformed US markets in 2024, with EURO STOXX 50 rising only 4.67% versus S&P 500's 25%. Political upheaval in UK, France, and Germany amid war-induced inflation creates opportunities in undervalued European stocks. |
European Underperformance Political Inflation Opportunities | |
| 2024 Q3 |
GoldGold prices rose 27% this year driven by global policy uncertainty and sovereign nations adding to reserves. Under the theory that gold should match global money supply changes, current prices are not far from theoretical value, though historical overshooting is possible. |
Gold Monetary Policy Sovereign Reserves Inflation Currency |
ChinaThe PBOC began addressing challenges in the Chinese market, which is possibly overdue. Chinese economy has many long-term challenges, causing stocks to be flushed out of global portfolios and become very cheap. Hong Kong indexes have fallen for four straight years and are washed out. |
China PBOC Hong Kong Valuation Asia | |
| 2024 Q2 |
CocoaBarry Callebaut benefits from record high cocoa bean prices through its cost-plus pricing model and vertically integrated supply chain. The company has secured cocoa bean supply for fiscal 2024 and is well-positioned to take market share in the volatile environment. |
Cocoa Commodity Supply Chain Pricing Volatility |
PaymentsWorldline is the largest merchant acquirer in continental Europe with strong local market positions. The company faces headwinds from economic weakness in Germany and regulatory changes, but maintains solid competitive advantages through scale and local footprint. |
Payments Fintech Europe Merchant Processing | |
EntertainmentDisney possesses unique content assets that generate franchise-like profits across multiple revenue streams including movies, TV, subscriptions, merchandise and theme parks. The business faces near-term pressures but the intrinsic value of its unique assets remains intact. |
Entertainment Content Franchise Media Parks | |
| 2024 Q1 |
ChinaChinese markets showing signs of life with regulatory improvements including crackdowns on market manipulation and introduction of class action shareholder suits. Valuations are low and profit margins have stabilized, though investment sentiment has not yet caught on. Both China and Hong Kong markets have been down four straight years. |
China Hong Kong Regulation Valuations Market Reform |
GoldGold's value proposition lies in its unpredictability and non-correlation with other assets, while providing a perpetual tailwind from continuous money supply growth. The manager views gold as a long-term indicator of global money supply growth rather than a simple inflation or currency hedge. |
Gold Money Supply Non-correlation Portfolio Diversification | |
| 2023 Q4 |
ValueManager discusses the evolution of value investing from a niche pursuit in the 1990s to mainstream status, leading to reduced opportunities. The value world became somewhat efficient as assets, talent, and information accessibility increased. The manager believes the industry is returning to its niche status with a robust opportunity set of high-quality companies trading at discounts to intrinsic values. |
Value Efficiency Opportunities Discounts Intrinsic |
| 2023 Q3 |
ValueCenterstone continues to seek good businesses trading below intrinsic values with adequate margins of safety. The portfolio is evolving towards higher quality franchise businesses and away from cigar butt investments. They emphasize identifying companies with strong market positions, solid balance sheets, and good management teams. |
Intrinsic Value Margin of Safety Franchise Quality |
Discount RetailDollar General represents a scale economics shared business model with nearly 20,000 stores across 47 states. The company uses scale to procure merchandise cheaply and shares benefits through everyday low prices, driving customer loyalty and repeat traffic in rural locations with low operating costs. |
Dollar Stores Scale Economics Rural Markets EDLP | |
| 2023 Q2 |
ValueThe manager discusses the value trade taking a breather in Q2 2023 but expresses confidence that the era of US stock market dominance is waning. They highlight growing evidence supporting globally diversified value investing styles with valuation support, money flows, normalizing interest rates and improving fundamentals overseas. |
Value International Undervaluation Fundamentals |
Auto AftermarketO'Reilly Automotive is highlighted as a top holding representing the automotive aftermarket parts industry. The company benefits from increasing vehicle age and consumers maintaining vehicles longer due to vehicle scarcity and high prices since COVID. O'Reilly has continued taking market share through its professional pricing initiative. |
Auto Parts Aftermarket Distribution Market Share | |
AIThe manager notes the AI-related stock bubble that dominated Q2 2023, particularly Nvidia's dramatic price increase. They compare this to the post-COVID meme bubble but note that AI stocks have legitimate business value increases rather than temporary government-funded spending, though valuations remain extreme with Nvidia trading at 41x sales. |
AI Nvidia Bubble Valuations | |
| 2023 Q1 |
Credit StressBanking sector stress emerged with Silicon Valley Bank and Signature Bank failures, echoing 2008 financial crisis beginnings. Manager notes the risk of sudden confidence loss in leveraged financial institutions but believes recent failures may be isolated given the US dollar has not spiked higher as in past crises. |
Banking Contagion Leverage Confidence |
QualityCenterstone focuses on three pillars: management quality, business quality, and balance sheet quality. High-quality management teams are long-term oriented and shareholder-focused, while high-quality businesses have enduring competitive advantages and strong balance sheets with termed-out liabilities. |
Management Competitive Advantages Balance Sheet Cash Flow |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2025 | Fund Letters | Abhay Deshpande | ISS DC | ISS A/S | Other | Facilities Services | Bull | NASDAQ | Deglobalization, Europe, Facilities, Outsourcing, services | Login |
| Jun 30, 2025 | Fund Letters | Abhay Deshpande | AI FP | Air Liquide S.A. | Information Technology | Chemicals | Bull | Euronext Stock Exchange | cash flow, Defensives, Europe, Industrial Gases, Localization | Login |
| Mar 31, 2025 | Fund Letters | Centerstone Investors Fund | NESN.SW | Nestlé S.A. | Consumer Staples | Packaged Foods & Meats | Bull | SIX Swiss Exchange | brand portfolio, consumer staples, contrarian, defensive, Local Manufacturing, Packaged Foods, Swiss, Tariff Protection, Value | Login |
| Mar 31, 2025 | Fund Letters | Centerstone Investors Fund | BARN.SW | Barry Callebaut Group AG | Consumer Staples | Packaged Foods & Meats | Bull | SIX Swiss Exchange | Chocolate Manufacturing, Cocoa Processing, Commodity Exposure, contrarian, Cost Reduction, market leader, Swiss, Value, vertical integration | Login |
| Dec 31, 2024 | Fund Letters | Centerstone Investors Fund | NESN.SW | Nestle SA | Consumer Staples | Packaged Foods & Meats | Bull | SIX Swiss Exchange | consumer staples, contrarian, defensive, dividend, European markets, Food & Beverage, Global Brands, Packaged Foods, Switzerland, Value | Login |
| Sep 30, 2024 | Fund Letters | Centerstone Investors Fund | 1299.HK | AIA Group | Financials | Life & Health Insurance | Bull | Hong Kong Stock Exchange | Asia-Pacific, defensive, dividend yield, Equity, Hong Kong, life insurance, market dominance, Value | Login |
| Jun 30, 2024 | Fund Letters | Centerstone Investors Fund | BARN.SW | Barry Callebaut AG | Consumer Staples | Packaged Foods | Bull | SIX Swiss Exchange | Chocolate, Cocoa Processing, Commodity Exposure, consumer staples, Cost-Plus Pricing, manufacturing, market leader, Switzerland, vertically integrated | Login |
| Jun 30, 2024 | Fund Letters | Centerstone Investors Fund | WLN.PA | Worldline SA | Information Technology | Data Processing & Outsourced Services | Bull | Euronext Paris | digital payments, Europe, Fintech, market leader, Merchant Acquiring, payment processing, Scale Advantages, technology | Login |
| Jun 30, 2024 | Fund Letters | Centerstone Investors Fund | 1299.HK | AIA Group Limited | Financials | Life & Health Insurance | Bull | Hong Kong Stock Exchange | Asia-Pacific, China, financial services, Hong Kong, life insurance, market leader, Southeast Asia, undervalued | Login |
| Jun 30, 2024 | Fund Letters | Centerstone Investors Fund | DIS | The Walt Disney Company | Communication Services | Movies & Entertainment | Bull | New York Stock Exchange | Content, entertainment, franchise, Intellectual Property, media, monetization, Streaming, theme parks | Login |
| Mar 31, 2024 | Fund Letters | Centerstone Investors Fund | SW.PA | Sodexo | Consumer Discretionary | Restaurants | Bull | Euronext Paris | Bolt-on Acquisitions, Employee Benefits, investment grade, market leader, network effects, scalable business model, spin-off, technology infrastructure | Login |
| Sep 30, 2023 | Fund Letters | Centerstone Investors Fund | CFLT | FleetCor Technologies | Information Technology | Data Processing & Outsourced Services | Bull | NYSE | B2B Services, Corporate-payments, digital payments, Expense Management, franchise business, network effects, strategic review, Value Investment | Login |
| Sep 30, 2023 | Fund Letters | Centerstone Investors Fund | 0TDG LN | Dollar General | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | Cyclical Recovery, Defensive Retail, discount retail, Everyday Low Prices, Low-Income Consumers, market share gains, Rural Markets, Scale Economics | Login |
| Jun 30, 2023 | Fund Letters | Centerstone Investors Fund | AVGO|BYD|CRWD|MELI|MSFT|NFLX|NVDA|NVO|ORLY|SPOT | O'Reilly Automotive | Consumer Discretionary | Automotive Retail | Bull | NASDAQ | Aging Vehicle Fleet, Automotive Aftermarket, Distribution Infrastructure, Dual Market Strategy, market leader, market share gains, Non-Discretionary, Professional Pricing | Login |
| Jun 30, 2023 | Fund Letters | Centerstone Investors Fund | SWON.SW | SoftwareOne | Information Technology | IT Services | Bull | SIX Swiss Exchange | cloud services, Digital transformation, double-digit growth, new management, Software Reseller, takeover target, undervalued, Value-Added Reseller | Login |
| Mar 31, 2023 | Fund Letters | Centerstone Investors Fund | AI.PA | Air Liquide | Materials | Industrial Gases | Bull | Euronext Paris | cash flow generation, conservative balance sheet, defensive, dividend policy, france, Industrial Gases, Local Monopolies, materials | Login |
| Mar 31, 2023 | Fund Letters | Centerstone Investors Fund | IAA | IAA Inc | Consumer Discretionary | Specialized Consumer Services | Bull | NYSE | asset-light, automotive, Canada, cash flow generation, Consignment Model, Counter-cyclical, Merger Arbitrage, Salvage Auction, UK, US | Login |
| - | Fund Letters | Centerstone Investors Fund | 4958.T | T Hasegawa | Materials | Specialty Chemicals | Bull | Tokyo Stock Exchange | Asia, Consumer products, discount, Flavors, Fragrances, Japan, specialty chemicals, Value | Login |
| - | Fund Letters | Centerstone Investors Fund | 6501.T | Hitachi | Industrials | Industrial Conglomerates | Bull | Tokyo Stock Exchange | Catalyst, conglomerate, digital infrastructure, IT services, Japan, renewable energy, restructuring, transformation | Login |
| - | Fund Letters | Centerstone Investors Fund | ERF.PA | Eurofins | Health Care | Life Sciences Tools & Services | Bull | Euronext Paris | Europe, Food Testing, Free Cash Flow, Hub-and-spoke, infrastructure, Laboratory Testing, market leader, Pharmaceutical Testing | Login |
| - | Fund Letters | Centerstone Investors Fund | RYA.L | Ryanair | Industrials | Airlines | Bull | London Stock Exchange | Airlines, balance sheet strength, Cyclical, Europe, franchise, Low-Cost Carrier, market share, Structural Advantage | Login |
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