The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Gehlen Bräutigam Capital returned +1.29% in Q3 2024, bringing YTD performance to +6.02%. The quarter was highlighted by a successful exit from Stemmer Imaging following a private equity takeover at a significant premium, validating the managers' thesis that private investors are recognizing undervaluations in smaller European companies. The proceeds were reinvested in JOST Werke, an automotive component manufacturer with resilient fundamentals and attractive valuation. The portfolio faced headwinds from STO's disappointing results, leading to a position reduction. However, the managers aggressively added to positions in MAB and TPFG during regulatory-driven market overreactions, demonstrating their contrarian approach. The Gym Group was the quarter's standout performer as operational improvements drove strong results. The managers maintain their patient value investing philosophy, focusing on business quality rather than market timing, while acknowledging that technical factors like small-cap outflows may delay value recognition but ultimately believe intrinsic value will assert itself over time.
The fund targets undervalued smaller European companies with strong fundamentals, taking advantage of market inefficiencies and short-term sentiment while maintaining a long-term ownership mindset.
The managers remain focused on patient, long-term value investing principles, emphasizing that they cannot control market timing but can control the quality of businesses they own. They expect time to work in their favor as intrinsic value eventually asserts itself.
As of Sep 30, 2024
Founded in 2018 by Daniel Gehlen and Marc-Lennart Bräutigam, both former investment bankers at Barclays. Gehlen holds credentials from The London School of Economics and Political Science. The team has grown from two to four partners, including Kory Kaunisto and Tristan, bringing complementary expertise in research and marketing. Both founders co-invest alongside clients and emphasize performance maximization over asset gathering, demonstrating strong alignment of interests with investors.
Moderate Conviction Bullish
Market Conviction
The managers demonstrate moderate-high conviction through concentrated positions in 8 named holdings with detailed thesis explanations for each. They show conviction by aggressively adding to positions during market overreactions and making decisive exits when thesis elements shift. However, the diversified nature across multiple small positions and hedged language around market timing prevents a higher score.
Growth Outlook
The managers express cautious optimism about their opportunity set, noting that private equity is validating undervaluations in smaller European companies. However, they acknowledge challenging macro environments and technical headwinds from small-cap outflows, resulting in a mildly positive but measured outlook.
Risk Appetite
The fund demonstrates selective risk appetite by aggressively adding to positions during market overreactions (MAB, TPFG) and rotating capital from exits into new opportunities (Stemmer to JOST). However, they also reduced exposure to underperforming positions (STO, Bijou Brigitte), showing disciplined risk management.
Capital Deployment
The fund shows modest net deployment through capital rotation from the Stemmer exit to JOST reinvestment and aggressive additions to MAB and TPFG positions. However, they also reduced STO and exited Bijou Brigitte entirely, suggesting selective rather than broad-based deployment.
Forward Guidance
The managers emphasize patience and long-term thinking rather than active deployment. They explicitly state they cannot control market timing and focus on business quality, suggesting a wait-and-see approach rather than aggressive capital deployment.
Language Signal
The letter contains balanced language with opportunities (undervaluations, private equity validation, attractive valuations) offset by risks and challenges (macro headwinds, regulatory investigations, disappointing results). Slightly more constructive than bearish overall.
Perceived Risk
The managers acknowledge moderate risks including challenging macro environments, regulatory investigations affecting portfolio companies, and technical factors from small-cap outflows. However, risk discussion is balanced with opportunity identification and not central to the letter's narrative.
Opportunity Density
The managers see selective opportunities in undervalued smaller European companies, evidenced by private equity interest and their ability to find attractive reinvestment opportunities. However, they emphasize the need for patience and selectivity, suggesting opportunities exist but require careful identification.
Time Horizon
The managers explicitly emphasize long-term ownership mentality, stating they focus on business quality over market timing and that time works in their favor through compounding. They describe themselves as patient investors and co-owners in businesses, indicating a multi-year investment horizon with no urgency for near-term catalysts.
Top Conviction Themes
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