Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.3% | -12.4% | -12.4% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.3% | -12.4% | -12.4% |
The Ganes Focused Value Fund delivered a negative quarter with the unit price down 12.4% versus the market's 2.0% decline, primarily due to falls in three larger holdings: Lovisa, ARB Corporation, and AUB Group. The underperformance was driven by weaker-than-expected profit results from Lovisa and ARB, while AUB Group suffered from AI disruption fears despite reporting healthy profit growth. The manager believes these AI concerns are disproportionate to actual business risks, particularly for specialized companies operating in regulated environments. PWR Holdings and Redox were positive contributors, both rising 10% on strong results. The fund maintained its concentrated approach with no changes to top 10 holdings, adding to AUB and trimming PWR on valuation. With cash at 7.0%, the manager views current market volatility as creating attractive opportunities to acquire quality businesses at valuations rarely seen, as share prices have moved far more than underlying fundamentals warrant.
The fund focuses on concentrated value investing in quality Australian businesses, believing that market volatility creates opportunities when share prices move far more than underlying business fundamentals warrant.
The manager expects increased volatility to be a feature of markets for the foreseeable future, but views current price movements as creating attractive opportunities to add quality businesses at rarely seen valuations.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 14 2026 | 2026 Q1 | ARB.AX, AUB.AX, BVS.AX, LOV.AX, PWH.AX, RDX.AX | AI, Australia, retail, technology, value, volatility |
LOV.AX AUB.AX BVS.AX |
The fund fell 12.4% in a volatile quarter dominated by AI disruption fears and profit disappointments. Despite healthy underlying business performance from holdings like AUB Group, indiscriminate selling created significant price dislocations. The manager views current volatility as opportunity, maintaining concentrated positions while selectively adding to quality businesses trading below intrinsic value. |
| 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 | - | Australian value fund declined 6.7% in Q4 on weakness in key holdings Lovisa, Eagers, and ARB. Manager maintains conviction in founder-led quality businesses, adding Bravura Solutions while selling New Hope Coal. Despite short-term underperformance, the fund has delivered 11.0% annualized returns since 2002, outperforming benchmark through patient capital allocation. |
| Oct 12 2025 | 2025 Q3 | APE.AX, ARB.AX, AUB.AX, DDR.AX, FID.AX, LOV.AX, MFF.AX, NHC.AX, PWH.AX, RDX.AX, REH.AX | Australia, Automotive, insurance, retail, small caps, value |
LOV AU PWH AU AUB AU REH AU |
Strong quarterly performance driven by Eagers Automotive's 68% surge and Lovisa's international expansion momentum. Fund maintains concentrated Australian value approach with selective positioning adjustments, reducing Reece exposure due to US competitive pressures while awaiting PWR Holdings' manufacturing transition benefits. Cash at 2.0% provides deployment optionality. |
| Jun 30 2025 | 2025 Q2 | ALU.AX, APE.AX, ARB.AX, AUB.AX, CBA.AX, COH.AX, DDR.AX, FID.AX, LOV.AX, MFF.AX, NHC.AX, PSI.AX, PWH.AX, RDX.AX, REH.AX, SMP.NZ | Australia, Automotive, retail, takeovers, value, volatility |
FID AU LOV AU APE AU SPY NZ PWH AU FID.AX |
Australian value fund underperformed despite 7.5% quarterly gain due to extreme volatility in four major holdings. Lovisa rebounded strongly while Eagers Automotive delivered 65% annual returns. Manager added to Fiducian Group position and views current volatility as creating long-term opportunities, with several holdings trading near 52-week lows offering better value for patient investors. |
| Mar 31 2025 | 2025 Q1 | APE.AX, ARB.AX, AUB.AX, DDR.AX, LOV.AX, MFF.AX, NHC.AX, PWH.AX, RDX.AX, REH.AX, SMP.AX | Australia, dividends, industrials, Quality, retail, value |
LOV.AX PWH.AX AUB.AX REH.AX RDX.AX |
Australian value fund suffered concentrated pain as three major holdings declined simultaneously despite operating in unrelated industries. Manager maintains conviction in quality businesses now trading at better valuations, with portfolio dividend yield at multi-year highs. Focus remains on patient ownership of founder-led companies with strong capital allocation, viewing current weakness as temporary given unchanged underlying business economics. |
| Dec 31 2024 | 2024 Q4 | AMZN, APE.AX, ARB.AX, AUB.AX, AXP, DDR.AX, DMP.AX, GOOGL, LOV.AX, MA, MFF.AX, NHC.AX, PWH.AX, RDX.AX, REH.AX, V | Australia, Concentration, long-term, Quality, retail, technology, value |
LOV.AX PWH.AX MFF.AX DMP.AX |
Ganes Focused Value Fund fell 5.3% in Q4 2024 as major holdings disappointed at AGMs, but delivered 5.9% annually and 11.3% since inception. The concentrated portfolio strategy creates short-term volatility but drives long-term outperformance through quality company selection. MFF Capital and Redox were key contributors while Lovisa and PWR Holdings detracted significantly. |
| Sep 30 2024 | 2024 Q3 | APE.AX, ARB.AX, AUB.AX, DDR.AX, LOV.AX, MFF.AX, PSI.AX, PWH.AX, RDX.AX, REH.AX, SMP.AX | Australia, Automotive, Concentration, growth, retail, value |
LOV.AX PWH.AX ARB.AX APE.AX |
Concentrated Australian value fund underperformed in Q3 due to mixed earnings reactions, particularly PWR Holdings' investment phase guidance. Lovisa remains the standout performer with exceptional five-year growth trajectory, while new addition Eagers Automotive offers attractive cyclical opportunity. Manager maintains conviction in high-quality businesses with strong capital returns during temporary consolidation phases. |
| May 7 2024 | 2024 Q2 | ALU.AX, ARB.AX, AUB.AX, COH.AX, DDR.AX, DMP.AX, LOV.AX, MFF.AX, PSI.AX, PWH.AX, REH.AX, SMP.AX | Australia, long-term, Patience, Quality, takeovers, value | - | Ganes Focused Value Fund posted -2.2% in Q2 but maintains strong long-term track record with 11.8% annualized returns since 2002. The concentrated Australian value strategy benefits from patient capital and low turnover. Two takeover offers for Altium and PSC Insurance will free up over 10% of assets for redeployment into new positions. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIAI disruption fears drove significant selling pressure across multiple holdings including AUB Group and Bravura Solutions. The manager believes these fears are overblown for specialized businesses operating in regulated environments with embedded software solutions. |
Disruption Software Automation Technology |
RetailLovisa continues international expansion with 64 new stores opened, achieving 22% revenue growth despite losses from new Jewells brand. The manager views current valuation as attractive given the successful track record and director buying. |
Expansion International Stores Growth | |
VolatilityMarkets experienced increased volatility with indiscriminate selling driven by profit disappointments, geopolitical fears, and AI concerns. The manager notes that share prices moved far more than underlying business fundamentals warranted. |
Selling Risk Markets Fundamentals | |
| 2025 Q4 |
Auto DealersEagers Automotive made a $1 billion investment in Canadian dealership CanadaOne, acquiring 65% stake. The Canadian market is less competitive with only 36 car brands versus 75 in Australia. CanadaOne covers fixed costs through service department alone, making it profitable before selling cars. |
Auto Dealers Canada Acquisition |
Specialty RetailLovisa fell 21% during the quarter after providing a weaker than expected trading update at their AGM. The company was essentially flat for the year and was the largest detractor to fund performance for the quarter. |
Specialty Retail Jewelry Trading Update | |
SoftwareBravura Solutions was added to the portfolio following disappointing full year results that caused shares to be marked down harshly. The company provides mission-critical software to financial institutions with high switching costs. Investment by Pinetree Capital and Damian Leonard has improved profitability. |
Software Financial Services Mission Critical | |
| 2025 Q3 |
Auto RetailEagers Automotive was the strongest performer, rising 68% during the quarter and contributing about 30% of fund gains. The shares are up 168% over the past year while paying 74c per share in fully-franked dividends. |
Auto Dealers Automotive Retail |
Specialty RetailLovisa reported 14% revenue growth to $800 million with 131 new stores added. The company is exploring acquisition opportunities from competitor Claire's bankruptcy filing, particularly in the USA, using a strategy successfully deployed in Europe. |
Retail International Expansion | |
Insurance BrokersAUB Group has been a quiet achiever with shares up nine-fold since 2009 investment, delivering roughly 15% per annum over 16 years. Latest results showed 17% profit increase with management expecting 10% growth next year. |
Insurance Brokers Consistent | |
| 2025 Q2 |
VolatilityThe fund experienced extreme volatility with four top 10 holdings falling more than 50% during the year, which is highly unusual when the broader market delivered positive returns. The manager views this volatility as advantageous for long-term returns, noting that having some investors willing to pay optimistic prices and others selling at depressed prices can benefit patient investors. |
Market Volatility Price Swings Opportunity Long-term Patience |
RetailLovisa's performance dominated the quarter with significant volatility, falling 20% in March then rising 32% in June. The company opened its new Jewells retail concept in the UK with seven stores and added retail veteran Mark McInnes as Executive Deputy Chairman to help manage over 1,000 stores globally. |
Retail Expansion Global Growth Store Rollout Management UK Market | |
AutomotiveEagers Automotive was the biggest contributor for the full year, rising 65% after the manager purchased it following a profit warning. The company presented an optimistic outlook aiming to add $1 billion in sales and signed a revised agreement with BYD for their Australian joint venture. |
Auto Dealers BYD Partnership Sales Growth Recovery Electric Vehicles | |
| 2025 Q1 |
ValueThe fund focuses on high quality businesses that are better value now after share price declines. The manager emphasizes that the economics of their holdings remain largely unchanged despite poor short-term performance, making them more attractive investments at current prices. |
Value Quality Undervalued |
DividendsThe current dividend yield of the portfolio is described as the most attractive it has been for many years. Several holdings like AUB Group increased dividends significantly while others like PWR Holdings and Reece cut dividends in line with reduced profits. |
Dividends Yield Income | |
| 2024 Q4 |
ConcentrationThe fund maintains a concentrated portfolio approach with top 10 holdings representing approximately 80% of the portfolio. This concentration has driven long-term outperformance but creates short-term volatility when individual holdings underperform. The manager emphasizes this concentrated strategy as their north star for finding high quality companies to own long-term. |
Concentration Portfolio Holdings Quality Long-term |
QualityThe fund focuses on identifying high quality companies that can be owned for the long-term. The manager's approach centers on finding businesses with sustainable competitive advantages and strong fundamentals that can compound returns over time. This quality focus has resulted in winners averaging 3.7 times the losses from their worst performers. |
Quality Long-term Compounding Winners Fundamentals | |
| 2024 Q3 |
Auto AftermarketARB Corporation reported strong profit growth of 18% to $102.7m with record OEM sales of $59.6m. The company is taking greater control of its US distribution through building a Seattle store and purchasing a stake in Off Road Warehouse with 11 stores. This vertical integration strategy positions ARB well for the next decade by controlling intellectual property, manufacturing, and distribution. |
Auto Parts Distribution OEM Vertical Integration US Expansion |
Auto DealersEagers Automotive is a new portfolio addition with 110-year history as Australia's largest new and used car dealer with 265 dealerships representing 13% of the new car market. Despite challenging cyclical conditions, the company offers attractive 7% dividend yield and potential 5% annual earnings growth through acquisitions. The business also benefits from a $726m property portfolio and would gain from interest rate cuts. |
Auto Retail Cyclical Dividends Property Interest Rates | |
Specialty RetailLovisa became the largest holding after five years of ownership, demonstrating exceptional growth with revenue more than doubling to $698.6m and profits growing to $82.4m. The company expanded to 900 stores across multiple markets including new entries into Ireland, China, and Vietnam. Management is taking a measured approach to expansion, particularly in China and the USA, prioritizing sustainable growth over rapid expansion. |
International Expansion Store Rollout China Sustainable Growth Retail | |
| 2024 Q2 |
ValueFund follows a value investing philosophy focused on finding good quality companies and holding them for the long term, decades if possible. The manager emphasizes patience and low portfolio turnover as key to delivering attractive returns and outperforming the market over time. |
Value Quality Long-term |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 14, 2026 | Fund Letters | Ganes Focused Value Fund | LOV.AX | Lovisa | Specialty Retail | Specialty Retail | Bull | Australian Securities Exchange | Fashion Jewelry, insider buying, international expansion, Specialty retail, Startup Losses, store rollout, Value | Login |
| Apr 14, 2026 | Fund Letters | Ganes Focused Value Fund | AUB.AX | AUB Group | Insurance Brokers | Insurance | Bull | Australian Securities Exchange | AI disruption, Bizcover Platform, Commercial Insurance, Dividend Growth, Insurance Broking, takeover target, UK Acquisition | Login |
| Apr 14, 2026 | Fund Letters | Ganes Focused Value Fund | BVS.AX | Bravura Solutions | Software - Application | Software | Bull | Australian Securities Exchange | AI disruption, Compliance Risk, defensive, Embedded Software, financial software, Regulated Environment, Special dividend | 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 |
| Jun 30, 2025 | Fund Letters | Wayne Jones | PWH AU | PWR Holdings Ltd. | Consumer Discretionary | Auto Parts | Bull | NYSE | Capacity, Cooling, Margins, Motorsport, Succession | Login |
| Jun 30, 2025 | Fund Letters | Ganes Focused Value Fund | FID.AX | Fiducian Group | Financials | Asset Management & Custody Banks | Bull | ASX | asset management, Australian, Capital-light, Equity, fee-based revenue, financial planning, financial services, high ROE, organic growth | Login |
| 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 |
| Mar 31, 2025 | Fund Letters | Ganes Focused Value Fund | LOV.AX | Lovisa | Consumer Discretionary | Specialty Retail | Bull | ASX | China market, Fashion Jewelry, global expansion, International Retail, same-store sales, Specialty retail, store expansion | Login |
| Mar 31, 2025 | Fund Letters | Ganes Focused Value Fund | AUB.AX | AUB Group | Financials | Insurance | Bull | ASX | Acquisitions, Dividend Growth, Insurance Broking, margin expansion, predictable revenue, small business, technology, UK Expansion | Login |
| Mar 31, 2025 | Fund Letters | Ganes Focused Value Fund | REH.AX | Reece Australia | Industrials | Trading Companies & Distributors | Bear | ASX | Branch Expansion, Competition, Cost pressures, Housing Construction, margin pressure, Mortgage Affordability, Plumbing Distribution, US Sunbelt | Login |
| Mar 31, 2025 | Fund Letters | Ganes Focused Value Fund | RDX.AX | Redox | Materials | Chemicals | Bull | ASX | Acquisitions, cash position, chemical distribution, founder-led, margin compression, Pricing power, specialty chemicals, Subdued Demand | Login |
| Mar 31, 2025 | Fund Letters | Ganes Focused Value Fund | PWH.AX | PWR Holdings | Industrials | Industrial Machinery | Bull | ASX | Aerospace, automotive, Cooling Solutions, Defense, manufacturing, margin compression, Tariff Protection, US Government Contract | Login |
| Dec 31, 2024 | Fund Letters | Ganes Focused Value Fund | PWH.AX | PWR Holdings Limited | Industrials | Machinery | Bull | ASX | Aerospace, automotive, Cooling Solutions, Defense, EV, Formula 1, Heat Exchangers, Industrials, manufacturing, Motorsport | Login |
| Dec 31, 2024 | Fund Letters | Ganes Focused Value Fund | MFF.AX | MFF Capital Investments Limited | Financials | Asset Management & Custody Banks | Bull | ASX | asset management, concentrated portfolio, Currency Tailwind, financial services, global equities, Listed Investment Company, technology, US Markets | Login |
| Dec 31, 2024 | Fund Letters | Ganes Focused Value Fund | LOV.AX | Lovisa Holdings Limited | Consumer Discretionary | Specialty Retail | Bull | ASX | Australia, Consumer Discretionary, Fashion Jewelry, global expansion, growth, International, retail, Specialty retail, store rollout | Login |
| Dec 31, 2024 | Fund Letters | Ganes Focused Value Fund | DMP.AX | Domino's Pizza Enterprises Limited | Consumer Discretionary | Hotels, Restaurants & Leisure | Bear | ASX | Consumer Discretionary, france, franchise, international expansion, Japan, Pizza Delivery, Restaurants, same-store sales, turnaround | Login |
| Sep 30, 2024 | Fund Letters | Ganes Focused Value Fund | LOV.AX | Lovisa Holdings Limited | Consumer Discretionary | Specialty Retail | Bull | ASX | China market, Dividend Growth, Fashion Jewelry, international expansion, same-store sales, Specialty retail, store rollout, sustainable growth, USA Market, Warehouse Infrastructure | Login |
| Sep 30, 2024 | Fund Letters | Ganes Focused Value Fund | PWH.AX | PWR Holdings Limited | Industrials | Aerospace & Defense | Bull | ASX | Aerospace, automotive, capital expenditure, Cooling Solutions, Defense, Heat Exchangers, High-performance, Manufacturing Facility, return on equity, value creation | Login |
| Sep 30, 2024 | Fund Letters | Ganes Focused Value Fund | ARB.AX | ARB Corporation Limited | Consumer Discretionary | Automobile Components | Bull | ASX | 4WD Accessories, aftermarket, Distribution Control, Export Sales, Intellectual Property, manufacturing, OEM Sales, Off Road, USA Market, vertical integration | Login |
| Sep 30, 2024 | Fund Letters | Ganes Focused Value Fund | APE.AX | Eagers Automotive Limited | Consumer Discretionary | Specialty Retail | Bull | ASX | Acquisitions, Automotive Dealerships, contrarian, cyclical business, dividend yield, economic headwinds, interest rate sensitivity, market share, property portfolio, Value Investment | Login |
| TICKER | COMMENTARY |
|---|---|
| PWH.AX | PWR Holdings reported a 28% increase in revenues and a 38% increase in profits which saw the share price rise 10% for the quarter. After last year's disappointing results there are signs the business has now recovered and can resume its growth trajectory, especially in its aerospace division. |
| LOV.AX | Lovisa had the largest impact on performance as its share price fell 28% during the quarter. The price has halved from its highs of last year but despite this the shares are still only slightly down on this time last year. The Lovisa store rollout continued during the last half with a net 64 new stores opened during the period. The United Kingdom, Germany, Canada and the USA being the main growth markets. Revenues were up 22% and underlying profit up 21% as well. But despite these headline numbers the share price was down significantly. Jewells incurred $11.2m in losses on $2.5m of revenue from 6 stores in just six months. Brett Blundy, who owns 39% of the company and has never bought or sold any shares since the company listed, bought $6m worth of shares on-market during March. |
| ARB.AX | ARB Corporation was the other large detractor when its shares fell 33% on the back of a weak profit result. Despite reporting similar revenues, its profit margins were crunched as the Australian dollar fell against the Thai baht leading to higher production costs and an 18% fall in profits. |
| AUB.AX | AUB reported a healthy profit result for the half-year. Underlying profits were up 13.9% on the back of a 6.6% increase in revenue, they increased their dividend by 8% on the previous year, and indicated profits are likely to be up more than 10% for the full year. However, the shares were sold down more than 20% during the quarter. The company was swept up in the fear that AI will allow customers to bypass brokers and navigate the process of buying insurance directly from underwriters. The company also announced the acquisition of Prestige for $432m during the quarter. It is hard to believe that only a few months ago the company received a takeover offer for $45 per share, and after reporting an increase in profits, increasing their dividend, and predicting profit growth the share price is down nearly 50%. |
| RDX.AX | The best performers were PWR Holdings and Redox which were both up 10%. |
| BVS.AX | Despite exceeding market expectations when reporting an increase in profits and paying a special dividend, Bravura also fell more than 20% during the quarter around fears that AI disruption will also severely disrupt software providers. The argument being that what has been a high-margin proprietary business is set to become a low-margin commodity business as AI provides a cheaper source of code and can be undertaken from within the business. At this stage nearly every business is being treated as the former, whereas I would argue Bravura and its products form part of the latter. Bravura provides software to large multi-national corporations operating in a complex, highly regulated environment. |
| 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 | |||