Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 21.9% | 0.3% | 2.8% |
| 2025 | 2024 |
|---|---|
| 2.8% | 19.2% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 21.9% | 0.3% | 2.8% |
| 2025 | 2024 |
|---|---|
| 2.8% | 19.2% |
Greystone Capital delivered +0.3% net returns in Q4 2025 and +2.8% for the full year, underperforming major indices but maintaining strong long-term outperformance with +21.9% annualized returns since inception. The concentrated portfolio experienced headwinds from poor stock selection in certain holdings and avoiding AI-themed investments, while benefiting from strong performance in APi Group, KITS Eyecare, and Bel Fuse. The manager systematically exited positions where the original thesis no longer held, reallocating capital toward higher-quality businesses with more visible earnings power. The top five holdings represent nearly 75% of capital, including Natural Resource Partners (coal royalties), KITS Eyecare (e-commerce eyecare), APi Group (fire safety services), Medical Facilities Corp (surgical hospitals), and a new position in Shift4 Payments (integrated payments). The current opportunity set remains unusually attractive, with portfolio companies deeply embedded in critical systems supported by recurring demand. The strategy focuses on allowing businesses to compound through volatility, with the underlying bet that global systems will continue functioning as they do today.
Greystone Capital operates a concentrated, differentiated small-cap value strategy focused on businesses with durable competitive advantages, strong free cash flow generation, and management teams aligned with shareholder interests, allowing these companies to compound through short-term volatility while delivering superior long-term returns.
The manager expresses confidence in delivering satisfactory long-term outcomes from current starting point, noting that attractive returns do not require heroic assumptions or perfect execution. The current opportunity set remains unusually attractive with new core holdings initiated that can deliver compelling long-term returns. The portfolio is positioned around businesses deeply embedded in critical systems with recurring demand and demonstrated ability to grow per-share value over time.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 24 2026 | 2025 Q4 | APG, BEL, DR.TO, FC, FOUR, KITS.TO, LMB, LNF.TO, LSPD.TO, NRP, SQ, SYZ, TOST, VYX | Buybacks, Coal, concentrated, E-Commerce, payments, small caps, value |
NRP KITS CN APG DR CN FOUR |
Natural Resource Partners continues to benefit from global coal consumption reaching record highs of 8.8 billion tons in 2025. The royalty business model provides exceptional… |
| Oct 30 2025 | 2025 Q3 | IVFH, SYZ CN | fundamentals, Market Rotation, Quality, small caps, Value Investing |
SYZLF CN IVFH SYZLF CN IVFH |
The manager attributed weak quarterly results to volatility in small-cap holdings like Sylogist and Innovative Food Holdings, noting that declines were driven by sentiment rather… |
| Jul 30 2025 | 2025 Q2 | APG, DR CN, KITS CN, NRP, SYZ CN | Compounding, Intrinsic Value, Patience, small caps, Valuations |
NRP APG SYZ CN KITS CN DR CN |
The commentary focuses on small-cap equities as a long-term opportunity amid prolonged underperformance and depressed valuations. Management argues that quality small businesses continue to compound… |
| May 2 2025 | 2025 Q1 | BFIT NA, FC, LNF CN, NRP, XPOF | - | - | - |
| Jan 20 2025 | 2024 Q4 | BELFB, DESP, IVFH, LMB, NRP, SYZ CN | - | - | - |
| Oct 30 2024 | 2024 Q3 | LNF CN, NNBR | - | - | - |
| Jul 26 2024 | 2024 Q2 | APG, BELFA, DR CN, LMB, SYZ CN | - | - | - |
| May 18 2024 | 2024 Q1 | IVFH, NNBR | - | - | - |
| Jan 2 2024 | 2023 Q4 | APG, BELFA, CURN, FC, LMB, SENEA, SYZ CN, THRY | - | - | - |
| Oct 31 2023 | 2023 Q3 | BELFB, DR CN, IDT, POL, SENEA | - | - | - |
| Jul 30 2023 | 2023 Q2 | APG, B4F GR, CURN, LMB, RICK, SYZ CN | - | - | - |
| Aug 5 2023 | 2023 Q1 | B4F GR, GFF, POL, SYZ CN | - | - | - |
| May 2 2023 | 2022 Q4 | APG, BSFFF, EDR SM, GFF, IDT, POL, RICK | - | - | - |
| Nov 15 2022 | 2022 Q3 | POL, RMNI, TIUM/U CN | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
BuybacksMultiple portfolio companies engaged in significant share repurchases including Mattel ($600M), Regeneron, MGM (40% over 5 years), and PVH. Manager views buybacks as value-creating at current discounted prices. |
Share Repurchase Capital Allocation Value Creation Discount |
CoalWarrior Met Coal was the single largest contributor to Fund performance during the quarter, benefiting from early completion of Blue Creek metallurgical coal mine eight months ahead of schedule. The completion portends far higher coal production, much lower capital spending, and likely return to significant cash distributions to shareholders. |
Metallurgical Coal Coal Mining Services Energy Coal Services | |
E-commerceAlibaba Group was the top detractor despite its core E-commerce business continuing to perform well and Cloud revenue growth accelerating. The company was negatively impacted by significant spending on subsidies to grow their Quick Commerce business, though losses are expected to be reduced over time. |
Quick Commerce Cloud China Technology AI | |
PaymentsWise represents the most asymmetric investment in the portfolio, taking market share from legacy correspondent banking through cheaper, faster, and more transparent infrastructure. The company is evolving from a remittance app into a global financial services platform with three reinforcing routes to market: Consumer, Business and Platform. |
Cross-border Fintech Infrastructure Platform SME | |
| 2025 Q3 |
Small CapsConcentrated portfolio of small-cap companies with limited sell-side coverage and institutional ownership. Invests where most institutional managers cannot or will not participate, allowing for asymmetric return potential. 44% of Russell 2000 stocks have zero Wall Street coverage, creating mispriced opportunities. |
Russell 2000 Limited Coverage Institutional Asymmetric Mispriced |
ValueThe portfolio trades at significant discounts to the broad market, with P/E ratios 40-42% below the S&P 500. The manager believes many steady-growing companies are overlooked by markets focused on AI winners, creating opportunities in businesses with lower assumed margins and productivity that could benefit from AI adoption. |
Discount Multiples Undervalued Overlooked Opportunity | |
| 2025 Q2 |
SmallCaps |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 30, 2025 | Fund Letters | Adam Wilk | SYZLF CN | Sylogist | Information Technology | Application Software | Bear | TSX | cashflow, ERP, management, Outlook, Risk, Software, valuation | Login |
| Oct 30, 2025 | Fund Letters | Adam Wilk | IVFH | Innovative Food Holdings | Consumer Staples | Specialty Distribution | Bull | NASDAQ | Distribution, Food, growth, management, restructuring, specialty, turnaround | Login |
| Oct 30, 2025 | Fund Letters | Adam Wilk | SYZLF CN | Sylogist | Information Technology | Application Software | Bear | TSX | cashflow, ERP, management, Outlook, Risk, Software, valuation | Login |
| Oct 30, 2025 | Fund Letters | Adam Wilk | IVFH | Innovative Food Holdings | Consumer Staples | Specialty Distribution | Bull | NASDAQ | Distribution, Food, growth, management, restructuring, specialty, turnaround | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | NRP | Natural Resource Partners L.P. | Energy | Thermal Coal | Bull | NYSE | cashflow, coal, deleveraging, royalties, Supplydemand | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | APG | APi Group Corp. | Industrials | Engineering & Construction | Bull | NYSE | Automation, cashflow, Regulation, Safety, services | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | SYZ CN | Sylogist Ltd. | Information Technology | Software - Application | Bull | NYSE | growth, Integration, Margins, Recurringrevenue, Software | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | KITS CN | Kits Eyecare Ltd. | Consumer Discretionary | Specialty Retail | Bull | NYSE | ecommerce, Eyewear, growth, Retention, Uniteconomics | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | DR CN | Medical Facilities Corp. | Health Care | Medical Care Facilities | Bull | NYSE | acquisition, cashflow, divestiture, Margins, Surgery | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | NRP | Natural Resource Partners LP | Energy | Coal & Consumable Fuels | Bull | New York Stock Exchange | balance sheet, coal, Distributions, Freecashflow, royalties | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | KITS CN | KITS Eyecare Ltd | Consumer Discretionary | Specialty Retail | Bull | New York Stock Exchange | ecommerce, Eyewear, growth, Margins, Unit economics | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | APG | APi Group Corporation | Industrials | Security & Alarm Services | Bull | New York Stock Exchange | cashflow, Fire Safety, infrastructure, recurring revenue, resilience | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | DR CN | Medical Facilities Corporation | Health Care | Health Care Facilities | Bull | New York Stock Exchange | buybacks, cashflow, Demographics, Hospitals, valuation | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | FOUR | Shift4 Payments Inc | Information Technology | Data Processing & Outsourced Services | Bull | New York Stock Exchange | buybacks, Margins, Payments, Platforms, scale | Login |
| TICKER | COMMENTARY |
|---|---|
| APG | APi Group contributed 0.41% with 3.85% ending weight. |
| DR.TO | Medical Facilities' stock has traded sideways for most of the last year despite their sale of BSH at 9x EBIT and most recently OSH at 9-10x EBIT. After the BSH sale, they conducted a large tender offer. Given the large cash balance after the OSH sale, I believe there is a strong likelihood they will do another large tender offer. Shares trade at only 4.7x EV/EBIT, the company continues to buy back large amounts of stock each month, and their last two remaining hospitals, ASH and SF, are likely worth at least the same if not more than BSH or OSH. |
| FOUR | Shift4 (FOUR), over the past 3 years: Revenue per share increased +122%, or +30% annualized. Free Cash Flow per share increased +227%, or +48% annualized. Share Price declined -45% over the past year. FOUR currently trades at 6% free cash flow yield. |
| KITS.TO | I took advantage of the November dip to buy some shares of an interesting Canadian company, Kits Eyecare, the founder, CEO and big shareholder has executed on the online optical industry. The company basically sells glasses online. The glasses are cheap and they are pushing a subscription model. Their advantage is that they finish their own lenses from blanks, they are not just a marketing operation. The company keeps growing and the valuation is a bet on the margins level at scale/steady state. |
| LMB | Limbach Holdings was the Fund's top contributor in 2020 and 2023 and has been the most lucrative investment since inception. In Q4, the manager added significantly to the position, once again making it a core holding for the Fund, after shares declined 55% from their 2025 high due to concerns around a temporary demand slowdown. LMB is a leading building systems solution firm specializing in mechanical, electrical, and plumbing systems. The company has transitioned from general contractor relationships to owner-direct relationships, driving EBITDA margins from 3% in 2019 to 12% today. The manager believes LMB can grow FCF per share at approximately a 20% CAGR over the medium term. |
| LNF.TO | Leon's hosted their first ever quarterly conference call and the business is doing just fine: sales, earnings and EPS were all up. The problem though is we are now almost 3 years removed from when they announced their intention to create a REIT for their vastly undervalued real estate portfolio and there has been no mention of when this will actually take place. |
| NRP | Natural Resource Partners, our coal royalty business, delivered another strong year in 2025, continuing its evolution into a debt-free, capital-return-focused royalty and infrastructure business. Due to the nature of the royalty business model that avoids ongoing capital expenditures and high operating costs, cash flows remained robust across the mineral rights segment, in what has been a tough environment for both met and thermal coal prices. During 2025, global coal consumption of 8.8 billion tons once again reached record highs, and given the severe supply/demand imbalance globally, I'd imagine pricing conditions begin to change favorably as we approach the end of the decade. Shares trade at a substantial discount to my intrinsic value estimate of $200-250/share, making NRP one of the most compelling asymmetries in the portfolio. |
| SQ | Block operates the Square platform that facilitates merchant payments and the Cash App platform that allows individuals to send and receive money. We exited Block due to our concerns around management's execution. |
| 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 | |||