Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 36.7% | -2.3% | 8.2% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 36.7% | -2.3% | 8.2% |
Dynasty Trust delivered -2.29% in Q4 2025 but remains excited about 2026 opportunities. Manager Andrew Brown sees the deepest and widest opportunity set in years for their controlled company strategy, despite elevated market valuations. The fund capitalizes on investor psychology driving excessive discounts in European holding companies, with positions like Hansa Investment trading at 44% discount to NAV and D'Ieteren obscuring Belron's value through complexity. Key contributors included Avolta and Robertet, while Vivendi and DGL Group detracted. The portfolio maintains 30 exposures with 8.3% cash, positioned for value realization in aircraft leasing through Avation and sum-of-parts opportunities in controlled entities. Strong travel recovery supports both aircraft leasing and travel retail themes, with international passenger growth of 5-7%. The manager emphasizes patient capital deployment in quality businesses trading at substantial discounts, contrasting with momentum-driven technology speculation. Risk management focuses on avoiding overvalued sectors while capturing mispricing in out-of-favor controlled companies with strong capital management practices.
Dynasty Trust focuses on controlled public companies trading at significant discounts to intrinsic value, particularly European holding companies where investor psychology has driven excessive pessimism despite strong underlying business fundamentals.
We are excited about 2026. The opportunity set for our style and philosophical approach to equity investment is now deeper and wider than for some time, despite market indices flirting with record highs and above normal valuations.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 5 2026 | Q4 2025 | 1928.HK, AVAP.L, AVOL.SW, CG, DGL.AX, DIE.BR, ELF.TO, EXO.MI, FFH.TO, FIH.TO, GOOGL, META, MFF.AX, NNI, RBT.PA, TSLA, UHR.SW, VIRT, VIV.PA | Aircraft, Controlled, Discounts, Europe, Holdings, Travel, value |
HANA LN DIE BB AVAP LN |
Manager 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… |
| Oct 1 2025 | 2025 Q3 | BOL FP, DGL AU, EXO NA, MANU, UHR SW | energy, Holding Companies, Luxury, tariffs, value | UHR SW | The letter focuses on controlled companies trading at large discounts to intrinsic value. Capital allocation decisions by controlling shareholders are critical to long-term outcomes. Patience… |
| Jun 30 2025 | 2025 Q2 | 1 HK, 6 HK, HPHT SP | asymmetry, capital preservation, Global Equities, Opportunistic, valuation | - | The letter highlights opportunistic investing across global equities with an emphasis on mispriced risk and asymmetric outcomes. Patience and capital preservation guide position sizing amid… |
| Apr 16 2025 | 2025 Q1 | 2588 HK, AVAP LN, VIV FP | - | - | - |
| Dec 31 2024 | 2024 Q4 | LPE FP, VIL FP, VIV FP | - | - | - |
| Oct 16 2024 | 2024 Q3 | 0I76 LN, BOL FP, DUFRY, FRPH, HAL NA, SAFLY, SBFFY, SIETY, THNPY, VPK NA | - | - | - |
| Jul 25 2024 | 2024 Q2 | BOL FP, FCMC FP, MMB FP, VIL FP, VIV FP | - | - | - |
| Apr 24 2024 | 2024 Q1 | 142 HK, 45 HK, FFH CN | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| Q4 2025 |
Aircraft LeasingStrong underlying environment with 5-7% growth in international passengers, near 100% capacity utilization, and limited aircraft availability. Avation represents asymmetric opportunity trading at 18% discount to NAV despite improved financial position. |
Lessors Capacity Travel Aviation Fleet |
TravelRoyal Caribbean exemplifies the portfolio's focus on companies combining physical assets with technology innovation, using AI and technology for pricing optimization, packaging, promotions, and onboard customer experience delivery. |
Technology Pricing Experience Innovation Optimization | |
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 |
EnergyEnergy plays a central role in the manager's analysis, both as a historical lesson from 2014-15 oil collapse and as a current constraint on AI infrastructure. Data centers have become massive electricity consumers with economics highly sensitive to power pricing and grid reliability. Rising electricity prices in data-center-heavy regions and utility challenges in expanding capacity create physical constraints that complicate AI scalability assumptions. |
Data Centers Grid Utilities Power Infrastructure |
Holding Companies |
||
LuxuryNew investment in Swatch represents exposure to luxury watch brands including Omega, Longines, Tissot, and others. The investment thesis is based on tangible assets including Swiss real estate and the potential for operating leverage when luxury demand recovers from current structural pressures. |
Watches Swiss Brands Premium Recovery | |
ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic | |
| 2025 Q2 |
Opportunistic |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 5, 2026 | Fund Letters | Andrew Brown | HANA LN | Hansa Investment Company | Financials | Asset Management | Bull | New York Stock Exchange | buybacks, Control, discounts, Governance, Holdingcompanies | Login |
| Jan 5, 2026 | Fund Letters | Andrew Brown | DIE BB | D’Ieteren Group | Consumer Discretionary | Automotive Retail | Bull | Shanghai Stock Exchange | automotive, buybacks, discounts, Holdings, Sumofparts | Login |
| Jan 5, 2026 | Fund Letters | Andrew Brown | AVAP LN | Avation PLC | Industrials | Aircraft Leasing | Bull | New York Stock Exchange | Aircraftleasing, Aviation, buybacks, cashflow, Navdiscount | Login |
| Oct 1, 2025 | Fund Letters | Andrew Brown | UHR SW | Swatch Group AG | Consumer Discretionary | Apparel, Accessories & Luxury Goods | Bull | Swiss Exchange | buybacks, China recovery, Gross margin, Luxury, operating leverage, Real Estate, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| AVAP.L | The company has progressed meaningfully in the space of nine months, significantly reducing financial risks, whilst the shares have done – nothing. As a consequence, the shares trade at around an 18% discount to net asset value, excluding aircraft purchase rights. |
| AVOL.SW | Solid growth and concession wins |
| CG | During the quarter, Chinese online discount retailer Vipshop Holdings Ltd., U.S. based investment firm The Carlyle Group, Canadian auto parts manufacturer Magna International and Swiss pharma Novartis AG were sold as each reached target valuation limits. |
| DGL.AX | Volatile & slow growing surgery activity - sold in May |
| DIE.BR | Gearing, opacity and reported profit decline obscuring value of Belron. Investors in D'Ieteren have faced a quandy since the group, in total, is now subject to significantly greater leverage with individual units paying hefty dividends and capital returns to the parent. |
| EXO.MI | Decline in prices of holdings and widened discount to NAV. We have favoured Exor despite/because of the recent downturn in Ferrari shares, given the strong see-through publicly listed element of over 85% of the portfolio, allied to strong capital management. |
| FFH.TO | In the Philippines we hold Ayala Corporation; and we hold Fairfax India. The last of these is a little anomalous in that India is not an undervalued market; we have faith in the ability of Fairfax to invest successfully for the long term. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| MFF.AX | The best performers were MFF Capital which was up 3.5%. |
| TSLA | Under the previous system, companies that produced only electric vehicles—most notably Tesla—generated large quantities of credits that could then be sold to manufacturers falling short of their EV production targets, allowing them to avoid regulatory penalties. |
| UHR.SW | We made one new purchase in the quarter Swatch. Swatch offers a rare investment opportunity backed by both tangible and intangible assets, with a valuation that assumes very little goes right. Swatch's balance sheet includes net cash of approximately CHF 1.5bn and Swiss real estate with an estimated market value of around CHF 4bn. At today's market capitalisation, this implies a valuation of roughly 1x sales for Omega, one of the world's most recognisable luxury watch brands, while the remainder of the group's portfolio, including Longines, Tissot, Blancpain, Harry Winston, Swatch, and its extensive component manufacturing operations, effectively being valued at zero. |
| VIV.PA | Concerns over regulatory difficulties across group companies |
| 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 | |||