Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 14.7% | - |
| 2025 | 2024 |
|---|---|
| 85.8% | -27.6% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 14.7% | - |
| 2025 | 2024 |
|---|---|
| 85.8% | -27.6% |
Focus Capital delivered exceptional performance in 2025 with 85.8% annual returns versus 17.9% for the S&P 500, driven primarily by two positions: Kingsgate and Silicon Motion. Kingsgate benefited from 65% gold price appreciation and operational improvements at its Thai mine, though the manager plans to trim exposure due to commodity price dependence. Silicon Motion gained 71.5% as the semiconductor company expanded market share with new product launches and entered enterprise markets, despite AI-driven supply chain challenges. The portfolio's other core holdings, Burford Capital and Valeura Energy, underperformed but remain deeply undervalued in the manager's view. Burford faces regulatory headwinds and YPF litigation uncertainty, while Valeura contends with 20% oil price declines but maintains strong profitability. The manager emphasizes these extraordinary results should not be expected going forward, maintaining focus on long-term value creation through fundamental analysis. The fund continues seeking deeply undervalued opportunities while planning strategic position adjustments, particularly adding to Burford and Valeura while potentially reducing Kingsgate exposure.
Focus Capital maintains a concentrated value approach, investing in deeply undervalued small-cap companies across global markets, with current emphasis on gold mining, semiconductor technology, energy, and litigation finance sectors.
The manager emphasizes that extraordinary 2025 results should not be expected as the new normal, focusing on long-term solid returns through fundamental analysis. The fund continues actively searching for deeply undervalued opportunities while planning strategic position adjustments in 2026.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 29 2026 | 2025 Q4 | BUR, KCN.AX, SIMO, VLE.TO | AI, gold, Mining, oil, semiconductors, small caps, technology, value |
KCN AU SIMO VLE CN BUR |
Gold prices increased 65% in 2025, significantly benefiting Kingsgate's mining operations and cash flow generation. The rising gold price was a major tailwind for the… |
| Oct 27 2025 | 2025 Q3 | - | Compounding, deep value, gold, Intrinsic Value, semiconductors |
KCN AU SIMO KCN AU SIMO |
The fund surged 25.3% in Q3, driven by strong performance from Kingsgate and Silicon Motion. Kingsgates gold mining operations benefited from rising gold prices and… |
| Jul 24 2025 | 2025 Q2 | - | Discipline, Margin Of Safety, selectivity, valuation, value | - | The letter highlights disciplined value investing through the lens of both investments made and consciously avoided, stressing that saying no is as important as saying… |
| Jan 29 2025 | 2024 Q4 | BUR LN, KCN AU, SIMO, VLE CN | - | - | - |
| Jul 24 2024 | 2024 Q2 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
GoldGold returned +65% in dollars in 2025, driven by broadening demand from central banks, professional and retail investors. Central banks now hold 24% of reserves in gold versus 23% in US Treasuries for the first time. Maintained 12% portfolio allocation throughout the year. |
Central Banks Reserves Diversification Demand | |
OilOil markets disrupted by closure of Straits of Hormuz affecting 20% of global production. Prices surged from $70 to $119.50 before retreating to $90. Market may be tighter than commonly believed despite IEA projections of surplus. Oil represents cheapest major asset class globally, trading at near-record lows relative to gold. |
Crude Brent WTI Hormuz Supply | |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
| 2025 Q3 |
GoldGold returned +65% in dollars in 2025, driven by broadening demand from central banks, professional and retail investors. Central banks now hold 24% of reserves in gold versus 23% in US Treasuries for the first time. Maintained 12% portfolio allocation throughout the year. |
Central Banks Reserves Diversification Demand |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
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 |
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 |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 29, 2026 | Fund Letters | Mordechai Yavneh | KCN AU | Kingsgate Consolidated Ltd | Materials | Gold Mining | Bull | New York Stock Exchange | cashflow, Commodities, Gold, Mining, valuation | Login |
| Jan 29, 2026 | Fund Letters | Mordechai Yavneh | SIMO | Silicon Motion Technology Corp. | Information Technology | Semiconductors | Bull | NASDAQ | AI, Controllers, Margins, Nand, semiconductors | Login |
| Jan 29, 2026 | Fund Letters | Mordechai Yavneh | VLE CN | Valeura Energy Inc | Energy | Oil & Gas Exploration & Production | Bull | New York Stock Exchange | cashflow, energy, Offshore, oil, valuation | Login |
| Jan 29, 2026 | Fund Letters | Mordechai Yavneh | BUR | Burford Capital Ltd | Financials | Specialty Finance | Bull | New York Stock Exchange | Catalysts, Legal, Litigation Finance, Special situations, valuation | Login |
| Oct 27, 2025 | Fund Letters | Mordechai Yavneh | KCN AU | Kingsgate Consolidated Ltd | Materials | Precious Metals | Bull | NYSE | cash flow, Commodities, Cost Reduction, Gold, leverage, Mining, profitability, undervalued | Login |
| Oct 27, 2025 | Fund Letters | Mordechai Yavneh | SIMO | Silicon Motion Technology Corp. | Information Technology | Semiconductors | Bull | NASDAQ | AI, Controllers, growth, market share, Memory, Nand, semiconductors, undervalued | Login |
| Oct 27, 2025 | Fund Letters | Mordechai Yavneh | KCN AU | Kingsgate Consolidated Ltd | Materials | Precious Metals | Bull | NYSE | cash flow, Commodities, Cost Reduction, Gold, leverage, Mining, profitability, undervalued | Login |
| Oct 27, 2025 | Fund Letters | Mordechai Yavneh | SIMO | Silicon Motion Technology Corp. | Information Technology | Semiconductors | Bull | NASDAQ | AI, Controllers, growth, market share, Memory, Nand, semiconductors, undervalued | Login |
| TICKER | COMMENTARY |
|---|---|
| BUR | Burford's stock dropped sharply over 2025, for the second year in a row, and in sharp contrast to the overall market. We believe that Burford is quite attractively priced at present, both for the core business alone, and even more so with the juicy cherry on top from the YPF proceedings. The Fund is likely to add more Burford to the portfolio over the coming year. |
| KCN.AX | Kingsgate almost quintupled for the year in dollar terms, providing the largest part of the Fund's gains. Yet even with such a stock run, the stock remains relatively cheap considering the present gold price and underlying economics. We will therefore be looking to trim and possibly exit the position over the coming year. |
| SIMO | Silicon Motion showed sustained strength in 2025, with revenue growing about 8% over the year, gross margin expanding further to about 49% (from about 46% in 2024), and double-digit growth in operating income. We continue to believe that Silicon Motion is a very good deal for the long term at these price levels, as they consolidate and expand their market share position and enter new, lucrative market segments. |
| VLE.TO | Valeura is highly profitable, even at these lower oil prices. Even at presently prevailing oil prices are set to make $90–$100 million per year, using conservative assumptions. We continue to view Valeura as exceedingly undervalued, and we anticipate adding more shares to our portfolio over the coming year. |
| 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 | |||