Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.5% | - | 12.3% |
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 12.3% | 19.5% | 15.1% | 4.4% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.5% | - | 12.3% |
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 12.3% | 19.5% | 15.1% | 4.4% |
Brian Frank's value strategy delivered 12.29% returns in 2025, outperforming the Russell Midcap Value Index. Since integrating catalyst-unlocking value in January 2022, the fund has generated 61.3% total returns versus 23.5% for Russell Midcap Value. Frank contrasts his undervalued holdings like Garrett Motion, offering 14% free cash flow yields, against overvalued companies like Microsoft at 2% yields. Seven portfolio holdings are repurchasing over 5% of shares annually, accelerating earnings growth for consumer staples companies. The fund's 2% dividend yield doubles the S&P 500. Frank warns that current market valuations mirror historical bubbles from 1999, 2021, and 1972, making long-term index returns mediocre. He expects a correction similar to 2022 when overvalued stocks must decline to attract value buyers. The manager believes his fundamentals-driven approach will outperform when large index gains inevitably slow, positioning the portfolio for superior long-term returns through disciplined value investing and active capital return programs.
Invest in undervalued companies with high free cash flow yields that can return capital to shareholders through dividends and buybacks, rather than overvalued growth stocks trading at unsustainable multiples.
Manager believes market correction is inevitable long-term and probable in 2026, with setup eerily similar to 2021 going into 2022. Expects value strategy to outperform when gains stop or slow down on large indices.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 6 2026 | 2025 Q4 | GTX, MSFT | Buybacks, cash flow, Consumer Staples, fundamentals, mid cap, value | - | Manager emphasizes investing based on cash flows rather than relying on expensive valuations. Contrasts undervalued holdings like Garrett Motion with 14% FCF yield against Microsoft's… |
| Oct 9 2025 | 2025 Q3 | - | Consumer Staples, free cash flow, interest rates, Mergers, value |
TGNA US NXST US |
The fund emphasizes value investing in small- and mid-cap consumer staples with high free cash flow yields amid market concentration in passive ETFs. It benefited… |
| Jul 3 2025 | 2025 Q2 | - | catalysts, fundamentals, spinoffs, takeovers, volatility |
NRG VST CTLP |
The commentary emphasizes catalyst-driven value investing, including spinoffs, takeovers, and structural demand shifts. Management highlights opportunities in power generation and overlooked small- and mid-cap stocks… |
| Apr 14 2025 | 2025 Q1 | - | - | - | - |
| Jan 9 2025 | 2024 Q4 | - | - | - | - |
| Oct 10 2024 | 2024 Q3 | - | - | - | - |
| Jul 9 2024 | 2024 Q2 | - | - | - | - |
| Apr 18 2024 | 2024 Q1 | - | - | - | - |
| Jan 2 2024 | 2023 Q4 | - | - | - | - |
| Oct 5 2023 | 2023 Q3 | - | - | - | - |
| Jul 9 2023 | 2023 Q2 | - | - | - | - |
| Apr 10 2023 | 2023 Q1 | - | - | - | - |
| Jan 22 2023 | 2022 Q4 | PSTL, PYPL | - | - | - |
| Oct 7 2022 | 2022 Q3 | - | - | - | - |
| Jul 6 2022 | 2022 Q2 | - | - | - | - |
| Apr 13 2022 | 2022 Q1 | ASTL | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
BuybacksShare repurchases in 2024 and 2025 hit consecutive records as companies raced to meet Tokyo Stock Exchange capital efficiency mandates. Buybacks were a primary driver of the market's 20% climb in the first half of FY2025. |
Share Repurchases Capital Efficiency TSE Mandates Shareholder Returns Records |
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 |
M&A |
|
Staples |
||
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 |
Catalyst |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 3, 2025 | Fund Letters | Brian Frank | VST | Vistra Corp. | Utilities | Utilities - Independent Power Producers | Bull | NYSE | buybacks, Capacity, datacenters, Power, Storage | Login |
| Jul 3, 2025 | Fund Letters | Brian Frank | CTLP | Cantaloupe Inc. | Information Technology | Software - Infrastructure | Bull | NASDAQ | acquisition, Payments, Privatization, Recurringrevenue, Vending | Login |
| Oct 9, 2025 | Fund Letters | Brian Frank | TGNA US | Tegna Inc. | Communication Services | Broadcasting | Bull | NYSE | broadcasting, cash flow, consolidation, dividends, M&A, media, valuation | Login |
| Oct 9, 2025 | Fund Letters | Brian Frank | NXST US | Nexstar Media Group, Inc. | Communication Services | Broadcasting | Bull | NASDAQ | broadcasting, cash flow, consolidation, growth, M&A, Margins, media | Login |
| Jul 3, 2025 | Fund Letters | Brian Frank | NRG | NRG Energy Inc. | Utilities | Utilities - Independent Power Producers | Bull | NYSE | acquisition, buybacks, datacenters, Electricity, Power | Login |
| TICKER | COMMENTARY |
|---|---|
| GTX | We initiated a position in Garrett Motion, an automotive parts and equipment company in the Consumer Discretionary sector. The company designs, manufactures, and sells turbocharger and electric boosting technologies for commercial vehicles. Garrett ranks high on multiple cash flow and forecast earnings measures on our model. The company typically pays a dividend and has been aggressively buying back stock, which we view positively. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| 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 | |||