| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.36% | 0% | 43.43% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 43.4% | 0.5% | 8.0% | -12.3% | 16.4% | -5.2% |
Comus Investment delivered strong 2025 returns of 43% for US clients and 83% for international clients, primarily driven by investments in Hong Kong small-caps as global sentiment toward China improved. The performance disparity resulted from InteractiveBrokers restricting US clients from buying Hong Kong small-caps after August 2024, significantly hampering the US portfolio. The manager describes Hong Kong as the world's cheapest developed market and continued buying throughout the downturn from 2022-2024 before sentiment recovered. Currently, the opportunity set has diminished substantially, with US client cash at an all-time high of 11% and international clients moving toward higher cash positions as well. The manager identifies very few bargains remaining outside of some Hong Kong stocks and two European companies. With equity prices at elevated levels across most markets since 2016, the strategy shifts toward patience and selective deployment, waiting for better pricing opportunities while maintaining rigid criteria for acceptable returns.
Focus on buying undervalued small-cap companies in Hong Kong and Europe when prices are attractive, maintaining high cash levels during expensive market periods, and waiting patiently for better opportunities to deploy capital.
Manager expects consistency in leaner opportunity years will be key to returns, with a good chunk of profits likely to come from years when entire markets are dead and recover sharply. Patience will be a virtue going forward given high prices nearly everywhere.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 16 2026 | 2025 Q4 | - | Cash, Hong Kong, Opportunities, pricing, Small-caps, value | IBKR | Comus delivered 43-83% returns in 2025 by capitalizing on Hong Kong small-cap recovery after loading up during 2022-2024 downturn. Broker restrictions hurt US clients. With few bargains remaining and elevated market prices, cash positions are rising to all-time highs as the manager waits patiently for better opportunities. |
| Aug 20 2024 | 2024 Q2 | WMT | Asia, deep value, Hong Kong, Market Timing, small cap, Valuations, value | - | Asian deep-value specialist delivered 6.07% gross returns despite regulatory headwinds limiting Hong Kong access for US clients. Portfolio concentrated in small-cap opportunities across Japan and Singapore, with notable wins in Mitsui E&S and Merchant House International. Manager maintains bearish US equity outlook citing extreme 36x valuations and rising unemployment signaling recession risk. |
| Jan 17 2024 | 2023 Q4 | AAPL, MCD, META, MSFT, NVDA, SHOP, TSLA, V | Hong Kong, Japan, Microcap, Price-to-Book, quantitative, small caps, value | - | Quantitative value manager focused on microcap stocks below $500M market cap suffered from Hong Kong exposure during worst drawdown since 1969. Japanese positions benefited from Yen weakness providing export advantages. Maintains conviction in price-to-book factor while avoiding high-multiple U.S. mega-caps, positioning for mean reversion in depressed markets where passive funds cannot participate. |
| Nov 10 2023 | 2023 Q3 | 7201.T | Asia, Autos, Hong Kong, Japan, real estate, small caps, Steel, value | - | Deep-value Asian small-cap fund delivered strong Q3 returns through opportunistic investments in net-cash companies and asset sales. Manager continues buying Hong Kong stocks at all-time lows despite systemic property sector fears, betting on quality companies with US exposure. Japanese holdings benefit from improving fundamentals but face Yen headwinds. |
| Jul 7 2023 | 2023 Q2 | GOOGL | AI, Currency, Hong Kong, Japan, Micro-caps, value | - | Micro-cap value specialist focusing on Hong Kong's severely depressed market where 40+ positions offer exceptional value with minimal competition. Manager continues aggressive buying despite ongoing declines, viewing current conditions as creating rare opportunities for patient fundamental investors while avoiding AI-driven US tech speculation. |
| Mar 4 2023 | 2023 Q1 | 7201.T | Credit Stress, Hong Kong, Japan, small caps, Turnarounds, value | - | Value-focused fund targeting quality companies at distressed valuations in overlooked overseas markets. Strong performance from Sitoy turnaround and Japanese auto parts manufacturers, though Hong Kong exposure remains challenging. Manager plans to reduce regional exposure while avoiding leveraged US small-caps until credit conditions improve and borrowing costs stabilize. |
| May 1 2023 | 2022 Q4 | - | - | - | |
| Jun 10 2022 | 2022 Q3 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Small CapsForeign small caps dramatically outperformed US small caps in 2025, with Foreign Developed Small Cap returning +34.1% versus US Small Cap at +11.6%. The market rewarded lower-quality names over high-quality companies, creating headwinds for quality-focused strategies like Grandeur Peak. |
Foreign Developed Quality Dispersion |
QualityThe market increasingly rewarded companies with weaker fundamentals, with the lowest-quality funds outperforming highest-quality peers by 24.2% in 2025. This speculative environment has been challenging for fundamentally-based, high-quality investment styles over the past five years. |
Fundamentals Speculation Outperformance | |
ValueValue significantly outperformed growth in foreign small caps, with Morningstar fund categories showing value ahead by 68.4% over five years versus 35.4% in index data. This disconnect suggests index returns have understated the opportunity set and valuation reset in growth. |
Growth Outperformance Disconnect Reset | |
EarningsPortfolio companies delivered strong earnings growth of 16.4% in 2025, exceeding estimates, with projected acceleration to 21.4% in 2026. The firm continues to believe earnings growth is a north star highly correlated with stock price over time. |
Growth Acceleration Correlation | |
AIAI poses real threats to Philippine BPOs which account for nearly 10% of the country's GDP. The firm sees considerable speculation and unsustainable valuations in quantum computing, blockchain, crypto, and metaverse companies that have yet to demonstrate durable business models. |
Threats Speculation Valuations Unsustainable | |
| 2024 Q2 |
ValueManager focuses on deep-value investing in Asian markets, particularly smaller companies trading at attractive valuations. The approach emphasizes finding undervalued opportunities in less efficient markets where pricing disconnects create investment opportunities. |
Deep Value Asian Markets Small Cap Undervalued |
AsiaPrimary investment focus on Asian markets, particularly Hong Kong, Japan, and Singapore. Recent regulatory restrictions by InteractiveBrokers have limited access to Hong Kong equities for US clients, forcing portfolio concentration adjustments and geographic reallocation. |
Hong Kong Japan Singapore Asian Equities Geographic Focus | |
| 2023 Q4 |
ValueManager employs quantitative value approach focusing on price-to-book and company size as primary return drivers. Emphasizes buying stocks at severe discounts to book value, particularly in smallest public companies where competition is limited and passive funds cannot participate. |
Price-to-book Small-cap Quantitative Discount ROE |
Small CapsConcentrated focus on companies below $500M market cap where there are no active markets, analysts, or passive funds. Manager believes this creates opportunities as larger funds cannot invest without moving prices, providing competitive advantage in microcap space. |
Microcap Illiquid Competition Market-cap Pricing | |
Hong KongSignificant exposure to Hong Kong microcaps experiencing severe drawdown with 80% of HK-listed stocks falling in 2023. Manager invested for cheap valuations rather than economic bet, but market has become referendum on entire region as global funds exit at record pace. |
Drawdown Microcaps Valuations Outflows Referendum | |
JapanJapanese positions performing well excluding massive Yen weakening. Manager sees enormous pricing advantage for exporters if Yen remains weak, with continued profit spikes expected. Focuses on extreme mean-reversion candidates coming out of down years with improved estimates. |
Yen Exporters Mean-reversion Currency Profits | |
| 2023 Q3 |
ValueManager focuses on deep-value investing, buying companies at large discounts to net worth. Examples include Advanced Holdings trading at 3x net cash and Japanese steel producer selling land for more than market cap. Strategy involves buying when others turn their noses up at stocks. |
Deep Value Net Cash Asset Sales Discount |
SteelJapanese steel producer sold land for gain exceeding market cap, written to zero over decades. Company was posting bad results but these gains occur when buying at large discount to net worth. |
Steel Land Sales Asset Value Japan | |
AutosJapanese auto suppliers primarily to Nissan have performed well despite being kept as small positions due to higher debt loads. Nissan is described as beleaguered but now sharply improving. |
Auto Suppliers Nissan Japan Debt | |
| 2023 Q2 |
Small CapsManager specializes in micro-cap investing, particularly in Hong Kong where he owns 40 micro-cap stocks out of approximately 1,000 available. He emphasizes that micro-caps behave uniquely and provide uncorrelated exposure that no index or ETF can replicate. |
Micro-caps Small-caps Uncorrelated Specialization |
Hong KongHong Kong is described as one of the worst performing markets globally, down in five of the last six years with 40%+ total losses. However, the manager sees this as creating great pricing opportunities with little competition from other funds, and he continues buying aggressively despite recent 8%+ quarterly declines. |
Bear market Opportunity Undervalued Competition | |
ValueThe manager focuses on finding undervalued opportunities, particularly turnarounds trading under net cash. He emphasizes bottom-up fundamental analysis and seeks investments where prices have become attractive due to lack of competition and market pessimism. |
Turnarounds Net-cash Fundamental Undervalued | |
AIAI is viewed as creating an unfavorable environment for fundamental investors, where tech executives can boost stock prices 20%+ simply by mentioning AI on earnings calls. This represents speculative excess rather than fundamental value creation. |
Speculation Tech Unfavorable | |
| 2023 Q1 |
ValueManager focuses on opportunistic value investing in companies trading at low multiples with turnaround potential. Emphasizes buying quality companies at distressed valuations, particularly in overlooked overseas markets where few investors are analyzing situations. |
Turnarounds Distressed Quality Multiples |
Hong KongPortfolio has significant exposure to Hong Kong despite regional challenges including recession and political risk. Manager acknowledges valuations remain subdued due to investor fear but views current purchases as opportunistic given unique circumstances. |
Political Risk Recession Valuations | |
Credit StressManager expresses caution about deteriorating corporate debt quality in small American companies after years of near-zero rates. Believes banking loan supply constraints and refinancing pressures could impact leveraged borrowers if profitability shocks occur. |
Leverage Refinancing Banking Liquidity |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 16, 2026 | Fund Letters | Aaron J. Saunders | IBKR | Interactive Brokers Group, Inc. | Financials | Investment Banking & Brokerage | Bear | NASDAQ | Brokerage, Compliance, Marketaccess, Platformrisk, Restrictions | Login |
| Oct 9, 2023 | Fund Letters | Comus Investment | - | Advanced Holdings Ltd | Energy | Oil & Gas Equipment & Services | Bull | Singapore Exchange | Asset Disposal, Cash distribution, Micro-cap, net cash, Petrochemical Equipment, Singapore, Special Situation, Value Realization | Login |
| Apr 3, 2023 | Fund Letters | Comus Investment | - | Sitoy Group Holdings Limited | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bull | Hong Kong Stock Exchange | deep value, Handbags, high dividend yield, Hong Kong, Luxury goods, manufacturing, Oem, turnaround, Value | Login |
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