| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.9% | -2.0% | 15.0% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 15.0% | 21.0% | 19.0% | -38.1% | 78.9% | 13.8% |
The Forager International Shares Fund returned -2.0% for Q4 2025 but delivered a strong 15.0% calendar year return, well exceeding the 9.9% index return. The fund benefited from catching major market waves including AI-driven demand for data centers and power generation, with Comfort Systems and Nextpower delivering exceptional returns of 120% and 139% respectively. Nutex Health was the largest contributor despite significant volatility. The portfolio underwent substantial refresh with eight departures and seven new investments, focusing on smaller-cap companies facing temporary setbacks but trading at low multiples. Quality businesses suffered as high valuations became problematic even for strong franchises. Technology stocks saw significant selloffs creating potential opportunities, though most remain expensive. Australian tourism recovery accelerated with international arrivals reaching 97% of 2019 levels. The manager sees improving conditions for active strategies given record outflows to passive investing and multiple fund closures, creating opportunities for patient long-term investors with loyal client bases.
Forager targets undervalued securities through concentrated portfolios, focusing on finding unpopular stocks that can become popular again while managing risks through active portfolio management and flexibility to invest across quality spectrums.
Looking into 2026, the manager sees opportunities in local markets where some favorite investing sectors became too popular and crowded but have since pulled back significantly. The environment for active managers should only get better given continued outflows from active strategies and multiple managers shutting down, creating opportunities for those with loyal long-term clients and good results.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 19 2026 | 2025 Q4 | AUTO.L, BKNG, CRH, CRM, FISV, FIX, FLUT, G24.DE, INCH.L, INGA.AS, IT, LNR.TO, NUTX, NXT, PSI.TO, REA.AX, SES.MI, WISE.L, XRO.AX, ZEG.L | AI, global, Quality, small caps, technology, Travel, value |
FISV NUTX NXT ZEG LN ARX AU |
AI companies' insatiable demand for data centres and power generation led to significant returns for heating and cooling system installer Comfort Systems and solar equipment… |
| Oct 9 2025 | 2025 Q3 | 4194 JP, 5038 JP, CRH, FI, FIX, INCH LN, NUTX, ZEG LN | Digitization, Governance, Japan, Reform, SmallCaps |
FIX US CRH US ZEG LN FI US VIS JP INCH LN |
The letter highlights global small-cap recovery and portfolio success from data center exposure and Japanese digitization. Governance reform and buyback momentum in Japan create attractive… |
| Jul 27 2025 | 2025 Q2 | 3769 JP, 4194 CN, 4733 JP, APG, CROX, FIX, FLUT, GLEN LN, JD/ LN, MTX GR, PSI CN, TKO, WISE LN, ZETA | contrarian, fundamentals, global value, valuation gaps, volatility |
PSI CN 3769 JP 4733 JP 4194 CN WISE LN FIX MTX GR FLUT TKO APG ZETA |
The commentary highlights global value opportunities outside crowded U.S. markets, with an emphasis on idiosyncratic situations and underfollowed companies. Management stresses patience and fundamental analysis… |
| Mar 31 2025 | 2025 Q1 | 4733 JP, FI, FOUR, NUTX, NXT | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
QualityThe portfolio has shifted toward higher quality businesses with better profitability, lower leverage, and less volatile earnings. Quality stocks underperformed significantly in 2025, creating attractive entry points for value investors. The manager maintains price discipline while seeking quality companies trading at discounts to intrinsic value. |
Quality Profitability Leverage Earnings | |
Technology |
||
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 | |
| 2025 Q3 |
JapanJapan offers tremendous value opportunities with one-third of companies trading below book value. Corporate governance reforms, record shareholder returns, and structural changes like unwinding cross-holdings are unlocking value. The investment opportunity is in early innings and could last several years. |
Corporate Governance Value Reforms Shareholder Returns Cross Holdings |
Reform |
||
SmallCaps |
||
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 27, 2025 | Fund Letters | Steve Johnson | FIX | Comfort Systems USA, Inc. | Industrials | Engineering & Construction | Bull | NYSE | backlog, construction, Datacentres, HVAC, Margins | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | MTX GR | MTU Aero Engines AG | Materials | Specialty Chemicals | Bull | - | Aerospace, aftermarket, Engines, growth, valuation | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | FLUT | Flutter Entertainment plc | Consumer Discretionary | Gambling | Bull | NYSE | Betting, Gaming, growth, Online, Regulation | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | TKO | TKO Group Holdings, Inc. | Communication Services | Entertainment | Bull | NYSE | Content, media, rights, sports, synergies | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | APG | APi Group Corporation | Industrials | Engineering & Construction | Bull | NYSE | cashflow, consolidation, Recurring, Safety, services | Login |
| Oct 9, 2025 | Fund Letters | Steve Johnson | FIX US | Comfort Systems USA, Inc. | Industrials | Building Products & Equipment | Bull | NYSE | AI, data centers, FCF, growth, HVAC, infrastructure, Margins, valuation | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | ZETA | Zeta Global Holdings Corp. | Information Technology | Software - Infrastructure | Bull | NYSE | Data, Marketing, SaaS, Software, valuation | Login |
| Oct 9, 2025 | Fund Letters | Steve Johnson | CRH US | CRH plc | Materials | Construction Materials | Bull | NYSE | — | Login |
| Jan 19, 2026 | Fund Letters | Steve Johnson | FISV | Fiserv, Inc. | Information Technology | Transaction & Payment Processing Services | Bull | New York Stock Exchange | management, Payments, rerating, turnaround, valuation | Login |
| Oct 9, 2025 | Fund Letters | Steve Johnson | ZEG LN | Zegona Communications plc | Communication Services | Telecommunications | Bull | NYSE | — | Login |
| Jan 19, 2026 | Fund Letters | Steve Johnson | NUTX | Nutex Health, Inc. | Health Care | Health Care Facilities | Bull | NASDAQ | cashflow, Hospitals, Sentiment, Special_Situation, Volatility | Login |
| Oct 9, 2025 | Fund Letters | Steve Johnson | FI US | Fiserv, Inc. | Information Technology | Transaction & Payment Processing Services | Bull | NASDAQ | — | Login |
| Jan 19, 2026 | Fund Letters | Steve Johnson | NXT | Nextracker Inc. | Industrials | Electrical Equipment | Bull | NASDAQ | Execution, Policy, renewables, Solar, valuation | Login |
| Oct 9, 2025 | Fund Letters | Steve Johnson | VIS JP | Visional, Inc. | Other | Professional Services | Bull | NYSE | — | Login |
| Jan 19, 2026 | Fund Letters | Steve Johnson | ZEG LN | Zegona Communications plc | Communication Services | Telecommunication Services | Bull | New York Stock Exchange | Asset_Sales, deleveraging, Special_Situation, Telecom, turnaround | Login |
| Oct 9, 2025 | Fund Letters | Steve Johnson | INCH LN | Inchcape plc | Consumer Discretionary | Distributors | Bull | NYSE | Autos, buybacks, Distribution, diversification, Global, profitability, valuation | Login |
| Jan 19, 2026 | Fund Letters | Steve Johnson | ARX AU | Aroa Biosurgery Limited | Health Care | Medical Devices | Bull | New York Stock Exchange | cashflow, Distribution, growth, Medtech, Operating_Leverage | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | PSI CN | Pason Systems Inc. | Other | - | Bull | TSX | Automation, cashflow, Cyclicality, Drilling, energy | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | 3769 JP | GMO Payment Gateway, Inc. | Information Technology | Software - Infrastructure | Bull | NYSE | Cashless, ecommerce, growth, Payments, Software | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | 4733 JP | OBIC Business Consultants Co., Ltd. | Information Technology | Information Technology Services | Bull | NYSE | Accounting, Margins, Recurring, SMEs, Software | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | 4194 CN | Visional, Inc. | Communication Services | Internet Content & Information | Bull | NYSE | compounding, growth, HR, Recruitment, Software | Login |
| Jul 27, 2025 | Fund Letters | Steve Johnson | WISE LN | Wise plc | Other | - | Bull | NYSE | Digital, Fintech, Listings, Margins, Payments | Login |
| TICKER | COMMENTARY |
|---|---|
| AUTO.L | Auto Trader, a UK-listed automotive classifieds platform, was the Fund's largest detractor. This reflected a combination of short-term factors unrelated to its half-year earnings release in November, which was a positive surprise. These included the rollout of its new Deal Builder product in late 2025, which triggered backlash from a small but vocal portion of its UK dealer base and threats of coordinated cancellations. While actual cancellations were well under 1% of its customer base, and management undertook rapid and extensive outreach efforts with dealers, this episode likely weighed on investor sentiment. |
| BKNG | You may remember that we owned Booking during the pandemic. It is the world's leading online travel agency and a business we have admired for a long time. The company benefits from powerful network effects—more hotels attract more travelers, and vice versa—creating a moat that is incredibly difficult for competitors to cross. It is highly profitable, capital-light, and generates significant free cash flow. We were happy to re-enter this high-quality compounder at a valuation that offers a compelling margin of safety. |
| CRM | By looking at their Rnancials, FactSet, PayPal, Adobe, and Salesforce seem to be doing Rne. The market, however, is reading subdued revenue growth as a sign of increased competition on their core oSerings. These companies' outlooks look more di'cult than their past. |
| FISV | Fiserv is a financial technology company that provides payments and other solutions to merchants and financial institutions. The company's scale, diversification, and ability to compound earnings at a double-digit rate make current valuation attractive. There was a sharp reset in Q3, with the FY25 outlook cut materially after a large miss versus expectations concentrated in the Financial Solutions segment, where both topline growth and profitability disappointed. While 2026 guidance has not been formally introduced, the new CEO framed FY26 as a transition year that resets the long-term growth algorithm to a lower baseline. Once earnings stabilize, we believe Fiserv offers a combination of strong topline growth, margin expansion, and cash generation. |
| FIX | An overweight position in Comfort Systems USA, Inc. (FIX) contributed to performance. The stock rallied after the company reported stronger-than-expected 3Q25 revenue, driven by robust demand for data centers and AI-related infrastructure. |
| INGA.AS | At the opposite end of the risk spectrum sits European bank ING Groep, which has also been an important contributor over recent years. The Fund first acquired shares in this conservatively capitalised bank in late 2023 at around €12 per share, a discount to tangible book value. The stock has doubled over the subsequent two years. |
| IT | Gartner is a global leader in research services, with a long history of delivering valuable insights and data to business and technology leaders. In our view, the company has the best brand in IT research, supported by its scale and a compelling customer value proposition. These advantages have driven a long history of strong organic growth and robust free-cash-flow conversion. The stock price has declined meaningfully from recent highs due to investor concerns surrounding AI-related disruption. We believe these concerns are overstated. In our view, Gartner is well-positioned to reaccelerate organic growth due to continued high customer engagement and the large opportunity to sell to new and existing customers. We took advantage of the opportunity to buy shares in this well-managed company at a bargain price. |
| LNR.TO | The share price of Linamar, the manufacturer of car components, farm and industrial equipment was up 11.6%. This makes it close to 50% for the year. Not only were the results sound (particularly from the automotive division), what stood out to us was the two acquisitions which are reported to be earnings accretive from day one. Together they will add CAD 1b to annual sales at 7-10% margins. We are particularly encouraged by reports suggesting that these were client led (which we suspect resulted in favourable terms), and the possibility of more to come. The results and general news were not cause for us to change our valuation. But finally the share price is starting to trade at a similar level. It is a 4.5% position. |
| NUTX | The biggest winner for the quarter was also the largest contributor over the past 12 months: Nutex Health. It has been a wild ride. After rising more than tenfold from the Fund's initial purchase in August 2024, and with a significant portion of the investment taken off the table, the stock more than halved between May and September 2025. More recently, the company lodged its accounts and the stock rose 60% over in the last three months of the year. |
| NXT | When Nextpower (formerly Nextracker) was added to the portfolio in May 2024, the solar sector was deeply out of favour. That thesis has played out. Demand proved resilient across regions, backlog grew to record levels, earnings repeatedly exceeded expectations and free cash flow generation was strong. By mid-November, the valuation largely reflected our assessment of fair value. |
| REA.AX | In contrast, the Fund's largest detractors were Pro Medicus, REA Group and WiseTech Global, which declined by 11.5%, 20.3% and 43.3% respectively. |
| WISE.L | Wise is the most asymmetric investment in our portfolio today and illustrates the idea of bounded downside and long-run upside in practice. Wise helps consumers and businesses hold and move money across borders, taking market share from the legacy correspondent banking model through infrastructure that is cheaper, faster, and more transparent. |
| XRO.AX | Xero detracted in the quarter due to a combination of company-specific execution concerns and AI-related sentiment. On the company-specific side, the announced acquisition of Melio, a U.S.-based digital payments platform focused on small businesses, raised questions around capital allocation and the timing of strategic benefits. |
| ZEG.L | Zegona Communications was another significant contributor to performance over the past year. Over the past six months, Zegona completed two FibreCo transactions with Telefónica and MasOrange, generating €1.8 billion of upfront proceeds. With the share price up around 130% since first purchase, the preference structure dismantled, FibreCo optionality crystallised and the turnaround well recognised by the market, the asymmetry that defined the original investment has largely been realised. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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