Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.0% | -6.7% | 4.7% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.0% | -6.7% | 4.7% |
The Ganes Focused Value Fund declined 6.7% in Q4 2025, underperforming the ASX 300's 0.9% decline, driven by weakness in Lovisa (-21%), Eagers Automotive (-16%), and ARB Corporation (-18%). Despite quarterly underperformance, the fund delivered 4.7% returns for 2025 and has generated 11.0% annualized returns since inception in 2002, outperforming the benchmark by 1.8% annually after fees. The manager participated in Eagers' capital raising to fund its $1 billion Canadian acquisition while trimming Lovisa at higher prices. New Hope Coal was sold as coal prices normalized, with proceeds used to add Bravura Solutions to the top 10 holdings. The portfolio maintains 3.9% cash and focuses on quality businesses led by founder-managers who retain significant stakes. The manager emphasizes patience over short-term trading, drawing inspiration from founders like Brett Blundy at Lovisa and Nick Politis at Eagers who have never sold shares, believing this long-term approach will ultimately reward investors despite current transition periods.
Focus on quality businesses run by exceptional founders who have never sold their stakes, believing that holding these companies long-term will outperform despite short-term volatility.
The manager remains confident they will be rewarded for patience during this transition period as several larger holdings invest for the future, along with the founders that run them.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 9 2026 | 2025 Q4 | APE.AX, ARB.AX, AUB.AX, BVS.AX, DDR.AX, FID.AX, LOV.AX, MFF.AX, NHC.AX, PWH.AX, RDX.AX | Australia, Automotive, Founders, software, value | - | Eagers Automotive made a $1 billion investment in Canadian dealership CanadaOne, acquiring 65% stake. The Canadian market is less competitive with only 36 car brands… |
| Oct 12 2025 | 2025 Q3 | APE AU, AUB AU, LOV AU, PWR AU, REH AU | aerospace, consumer, diversification, growth, retail |
LOV AU PWH AU AUB AU REH AU |
The fund highlights resilience in consumer and retail sectors through holdings like Lovisa, expanding internationally and benefiting from competitor bankruptcies. Aerospace exposure through PWR Holdings… |
| Jun 30 2025 | 2025 Q2 | APE AU, FID AU, LOV AU, PWH AU, RDX AU, SPY NZ | Compounding, Concentrated Portfolio, conviction, fundamentals, long-term |
FID AU LOV AU APE AU SPY NZ PWH AU |
The commentary highlights a concentrated portfolio of high-conviction Australian equities, emphasizing long-term compounding and owner-oriented management teams. Management discusses volatility in individual holdings while reinforcing… |
| Mar 31 2025 | 2025 Q1 | APE AU, AUB AU, LOV AU, PWH AU, RDX AU, REH AU | - | - | - |
| Dec 31 2024 | 2024 Q4 | ARB AU, DPZ, LOV AU, MFF AU, PWH AU, RDX AU | - | - | - |
| Sep 30 2024 | 2024 Q3 | APE AU, ARB AU, LOV AU, PWR AU | - | - | - |
| May 7 2024 | 2024 Q2 | ALU AU, AUB AU, LOV AU, PSI AU, SMP AU | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Auto DealersCarvana represents a major portfolio holding that has grown 100x from 2022 lows, demonstrating the power of digitally native auto dealing with proprietary technology for pricing, logistics, inspections, and reconditioning workflows. |
Digital Technology Logistics Pricing Scale |
Software |
||
| 2025 Q3 |
ConsumerThe consumer segment includes DJL Petfoods (pet food ingredients distributor) and TSDC Wholesale (food and grocery wholesale). DJL exemplifies RDCP 2.0 characteristics as an asset-light but infrastructure-critical business with long-standing customer relationships, exceptional retention rates, and exposure to growing pet ownership and premiumisation trends. These businesses benefit from structural advantages and recurring revenue streams. |
Pet Care Food Distribution Consumer Staples Wholesale Distribution |
Retail |
||
SpaceSpaceX is generating significant value with rapid expansion of Starlink broadband service, deploying vast satellite constellation with substantial user growth. The company has established itself as leading launch provider with reusable technology and is making tremendous progress on Starship rocket. SpaceX represents the fund's largest position at 19.2% of net assets. |
Satellites Launch Starlink Starship Reusable | |
| 2025 Q2 |
ConcentrationFive companies now represent roughly 30% of the S&P 500's market cap. The top 10 exceed 40%—the highest concentration in 50 years. Nearly $340 billion flowed into U.S. deals, yet it was packed into the fewest deals of the decade, with nearly half the capital concentrated in a few dozen deals over $500 million. |
Market Capital Risk Deals Venture |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2025 | Fund Letters | Wayne Jones | FID AU | Fiducian Group Ltd. | Other | - | Bull | NYSE | Assetmanagement, compounding, dividends, platform, Wealth | Login |
| Jun 30, 2025 | Fund Letters | Wayne Jones | LOV AU | Lovisa Holdings Ltd. | Consumer Discretionary | Specialty Retail | Bull | NYSE | brands, International, Jewellery, retail, Rollout | Login |
| Jun 30, 2025 | Fund Letters | Wayne Jones | APE AU | Eagers Automotive Ltd. | Consumer Discretionary | Auto & Truck Dealerships | Bull | NYSE | Autos, consolidation, Dealerships, EVs, growth | Login |
| Jun 30, 2025 | Fund Letters | Wayne Jones | SPY NZ | Smartpay Holdings Ltd. | Other | - | Bull | NYSE | cashflow, M&A, Payments, Regulation, Terminals | Login |
| Jun 30, 2025 | Fund Letters | Wayne Jones | PWH AU | PWR Holdings Ltd. | Consumer Discretionary | Auto Parts | Bull | NYSE | Capacity, Cooling, Margins, Motorsport, Succession | Login |
| Oct 12, 2025 | Fund Letters | Wayne Jones | LOV AU | Lovisa Holdings Ltd. | Consumer Discretionary | Specialty Retail | Bull | Australian Securities Exchange | acquisition, expansion, Global, growth, Jewelry, Margins, retail, valuation | Login |
| Oct 12, 2025 | Fund Letters | Wayne Jones | PWH AU | PWR Holdings Ltd. | Consumer Discretionary | Auto Components | Bull | Australian Securities Exchange | Aerospace, Cooling, Defense, engineering, growth, manufacturing, Margins, recovery | Login |
| Oct 12, 2025 | Fund Letters | Wayne Jones | AUB AU | AUB Group Ltd. | Financials | Insurance Brokers | Bull | Australian Securities Exchange | Brokers, compounding, dividends, growth, Insurance, stability, valuation | Login |
| Oct 12, 2025 | Fund Letters | Wayne Jones | REH AU | Reece Ltd. | Industrials | Building Products & Equipment | Bear | Australian Securities Exchange | Competition, construction, Margins, Plumbing, restructuring, ROE, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| APE.AX | Eagers fell 16% during the quarter after announcing a $1.0 billion investment in the Canadian car dealership, CanadaOne, and undertaking a $500m capital raising to help fund the purchase. But despite the latest quarter dip in price Eagers has easily been the best performer and largest contributor to fund performance for the past calendar year. The shares started 2025 under $12 per share and finished the year at nearly $25 whilst also paying 74c in fully franked dividends, a 7% yield on our purchase price. |
| ARB.AX | ARB Corporation (down 18%), the main detractors within the portfolio. |
| AUB.AX | During the quarter AUB received an 'Unsolicited Non-Binding Indicative Proposal' to acquire the business for $45.00 per share from a private equity bidder. The offer was terminated a month later and the shares have since fallen back to slightly below where they were at the start of the quarter. |
| BVS.AX | Bravura Solutions was recently added to the portfolio following the release of its full year results which disappointed the market and the shares were marked down harshly. The price has since recovered as the company announced a profit upgrade and, as a result, has become a top 10 holding for us. The company is based in Australian but has global operations providing mission-critical software to major financial institutions in the wealth management, life insurance and funds administration sectors. |
| FID.AX | Another example in our portfolio is Fiducian Group. Founded and run by Indy Singh, Indy is another founder that hasn't sold and is now a very wealthy man. In a conversation with another fund manager who also owns Fiducian, Indy said that everyone who owned shares at the float had sold except for him, they all just found a reason to sell. |
| LOV.AX | Lovisa fell 21% during the quarter and was the largest detractor to fund performance for the quarter. The fall came after the company provided a trading update at their Annual General Meeting which was weaker than expected. Lovisa was essentially flat for the year. Recently at the Lovisa AGM, Brett Blundy made a point of telling shareholders that he had never sold a share in Lovisa. |
| MFF.AX | The best performers were MFF Capital which was up 3.5%. |
| NHC.AX | We first purchased New Hope in March 2022 when the coal spot price spiked following the outbreak of the war in Ukraine. We have done well on our investment but with the coal price back trading at normal levels the opportunity to use these funds to buy quality companies with more predictable future earnings now appears more attractive. |
| PWH.AX | We attended the company's AGM at their new facility in October and came away very impressed. This facility should allow the company to grow for many years to come. The company also outlined some of the new rule changes for F1 for the coming season which can only benefit the company. During December the company announced that the current Chief Financial Officer (CFO) Sharyn Williams will become the new Chief Executive Officer (CEO) taking over from the current interim CEO Matthew Bryson. |
| RDX.AX | The best performers were Redox which was up 6%. |
| 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 | |||