| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.4% | 4.8% | 40.4% |
| 2025 | 2024 |
|---|---|
| 40.4% | 16.0% |
The Moerus Worldwide Value Fund returned 4.82% in Q4 2025, generating strong absolute performance while slightly trailing its international benchmark amid outperformance by non-U.S. equities. The Fund's top contributors exemplified its contrarian value approach: Valterra Platinum benefited from platinum market supply deficits and auto manufacturers walking back EV ambitions; Midland Holdings recovered from deeply depressed Hong Kong property market levels; LATAM Airlines continued its post-bankruptcy recovery; Standard Chartered maintained strong performance from its Asian growth markets positioning; and Türkiye Sigorta gained from improved Turkish monetary policy. The manager emphasizes investing in companies where overly pessimistic expectations create Price Risk on the downside, allowing for significant upside when outcomes prove merely benign. Looking forward, they believe heightened geopolitical and trade policy volatility will continue creating opportunities for patient, long-term investors willing to focus on fundamental values rather than short-term sentiment swings. The Fund sees reduced competition for deep value opportunities due to value investor attrition and style drift toward Growth strategies.
The Fund pursues deeply discounted value opportunities where overly pessimistic expectations create upside potential when outcomes prove merely benign, focusing on out-of-favor investments across global markets while maintaining a long-term, price-conscious approach.
The manager believes forecasting near-term economic or geopolitical events is not productive and maintains a long-term focus. They see heightened volatility as beneficial for patient, price-conscious investors and believe this is another period where attractive long-term opportunities are available for those willing to focus on fundamental business values rather than short-term sentiment swings.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 30 2026 | 2025 Q4 | 1200.HK, CMW.AX, DC.TO, DOUG, EXOR.MI, JEF, JSE.L, LTM, NTCO3.SA, STAN.L, TARS, TSGYO.IS, VAL, VALT.L, WED.TO | Banking, contrarian, emerging markets, international, Mining, Recovery, value, volatility | - | The Fund focuses on deeply discounted opportunities where overly pessimistic expectations are priced in, creating upside potential when outcomes prove merely benign. Examples include Valterra Platinum, Midland Holdings, and LATAM Airlines, all purchased when expectations were at their nadir. The manager believes there is less competition for deep value, out-of-favor opportunities due to attrition among value investors and style drift toward Growth strategies. Valterra Platinum, the world's largest producer of Platinum Group Metals, was purchased when expectations were rock-bottom due to EV adoption concerns. The platinum market entered its third consecutive year of supply deficit in 2025, with producers cutting higher-cost production and auto manufacturers walking back EV ambitions. Platinum prices surged from depressed levels, driving significant gains. LATAM Airlines Group was purchased in 2023 shortly after emerging from bankruptcy when stigma and pandemic effects repelled investors. The company had a much-improved financial profile, competitive position, and cost structure post-bankruptcy with meaningfully reduced debt and operating costs. Performance was driven by passenger volume recovery and impressive business results leading to increased profitability and share repurchases. Türkiye Sigorta was added in 2023 when general investor flight from Turkey occurred amid unorthodox economic policies and 85% inflation. The insurance environment was painful with dramatically rising claims costs, but created opportunity to invest in a high-quality business at heavily discounted prices. Performance improved as policies reset at higher prices and the Turkish Central Bank adopted orthodox monetary policy. Midland Holdings, the leading Hong Kong residential property broker, was purchased when shares had sunk to extremely depressed levels amid an ailing local residential market hurt by higher interest rates and economic issues. The company's cash made up roughly 70% of market cap at purchase, with nascent signs of improvement in the Hong Kong residential market exceeding minimal expectations. |
| Aug 7 2025 | 2025 Q2 | 1200 HK, 1821 HK, BBD, CCO CN, EFX CN, TDW, TPK LN, VAL | asset value, deep value, downside protection, Mean reversion, Replacement cost |
BBD TPK LN VAL TDW |
The commentary highlights deep value opportunities in neglected global markets where asset values materially exceed market prices. Management stresses hard assets, replacement cost, and downside protection in inflationary or uncertain regimes. Mean reversion and corporate actions are key return drivers. |
| Dec 31 2024 | 2024 Q4 | 1821 HK, 1910 HK, 83 HK, AAL LN, BMA, DESP, EFX CN, JEF, NVDA, TDW, TURSG TI | - | - | |
| Jun 30 2024 | 2024 Q2 | 388 HK, CMW AU, DESP, DOUG, GGAL, MEG CN, TDW, TECK/B CN, TURSG TI | - | - | |
| Nov 30 2023 | 2023 Q4 | ARCO, DESP, EDEL IN, EMAAR UH, NTCO3 BZ, NUVAMA IN, TDW, TECK/B CN, TURSG TI, UNC IN, WED CN, WG/ LN | - | - | |
| May 31 2023 | 2023 Q2 | CRE LN, DESP, LTM, NN NA, NTCO3 BZ, PCAR3 BZ, SPB, TDW, TECK/B CN, UNC IN, WED CN | - | - | |
| Dec 31 2022 | 2022 Q4 | ARCO, BRX, DESP, EMAAR UH, GIVPY, IPCO CN, SPB, TDW, YRI SW | - | - | |
| May 31 2022 | 2022 Q2 | ARCO, CIB, CRE LN, IDFCFB IN, IPCO CN, ITAUCL CI, STAN LN, TDW | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AirlinesRyanair represents the fund's largest position at 9.4%, benefiting from earlier aircraft deliveries and upgraded traffic expectations. Management expects reasonable net profit growth with strengthening competitive positioning. |
Traffic Aircraft Deliveries Competition |
Hong KongHong Kong represents the manager's primary opportunity set, described as the world's cheapest developed market. International clients experienced 83% returns as the manager continued buying small companies there throughout 2024-2025, though US clients were restricted by broker limitations. |
Small-caps Developed market Restrictions Opportunities | |
Platinum Group MetalsRhodium is particularly well-suited for hybrid vehicles requiring catalysts at lower operating temperatures. The US has classified rhodium as a critical mineral with $64.3 billion potential GDP impact, yet prices trade 150% below 2022 levels despite recovery momentum. |
Rhodium Hybrid Vehicles Critical Minerals Catalysts PGM | |
TurkeyTürkiye Sigorta was added in 2023 when general investor flight from Turkey occurred amid unorthodox economic policies and 85% inflation. The insurance environment was painful with dramatically rising claims costs, but created opportunity to invest in a high-quality business at heavily discounted prices. Performance improved as policies reset at higher prices and the Turkish Central Bank adopted orthodox monetary policy. |
Insurance Inflation Monetary Policy Emerging Markets Underwriting | |
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 Q2 |
ValueThe fund emphasizes being 'value aware' and focuses on finding rare cases where both quality and value intersect. They regularly search the 52-week low list for potential opportunities rather than momentum plays. The managers believe the investment community is casting its gaze away from various market constituents that offer asymmetric risk-reward for those willing to look forward three to five years. |
Value investing Quality Asymmetric risk 52-week lows Price discipline |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 7, 2025 | Fund Letters | Amit Wadhwaney | BBD | Banco Bradesco S.A. | Financials | Diversified Banks | Bull | Brasil Bolsa Balcão | banking, Brazil, Cyclicalrecovery, Earningspower, valuation | Login |
| Aug 7, 2025 | Fund Letters | Amit Wadhwaney | TPK LN | Travis Perkins PLC | Industrials | Trading Companies & Distributors | Bull | London Stock Exchange | construction, Housing, Property, recovery, restructuring | Login |
| Aug 7, 2025 | Fund Letters | Amit Wadhwaney | VAL | Valaris Limited | Energy | Oil & Gas Drilling | Bull | New York Stock Exchange | Drilling, energy, Offshore, Supplydemand, turnaround | Login |
| Aug 7, 2025 | Fund Letters | Amit Wadhwaney | TDW | Tidewater Inc. | Energy | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | Cyclicals, energy, Offshore, valuation, Vessels | Login |
| TICKER | COMMENTARY |
|---|---|
| 1200.HK | Midland Holdings, the leading Hong Kong-based residential property broker was added to the Fund early in 2025. Midland's shares had sunk to what we believed were extremely depressed levels over the past several years amid an ailing local residential market that was hurt by higher interest rates and a host of economic, political and pandemic-related issues in Hong Kong. Expectations for Midland's business – which is highly driven by residential transaction volumes – were arguably non-existent, with the consensus view seemingly that there would be little-to-no recovery in the Hong Kong residential market anytime soon. Midland's shares sold off to the point where its stock price attributed very little value to the business, in our view, considering the company's large net cash balance – despite it being a well-managed business that was temporarily depressed due to circumstances beyond its control. We built a position in the Fund at levels at which we estimated Midland's cash (net of debt and lease liabilities) made up roughly 70% of its market cap at the time. Since then, Midland shares have risen significantly from those deeply depressed levels amid nascent signs of improvement in the Hong Kong residential market that, while modest, nonetheless has greatly exceeded the minimal expectations that had previously been priced into the stock. |
| DOUG | Douglas Elliman (-17.1%) amid subdued transaction activity. |
| EXOR.MI | European holding company Exor had a disappointing stock market performance in the quarter and year, with the share price correcting in 2025. This is despite a series of capital allocation and portfolio moves that fundamentally enhanced intrinsic value per share and continue to give us confidence in the leadership of CEO John Elkann. Exor executed a partial sale of Ferrari early in the year at all-time highs, roughly 40% above year end levels, and redeployed the proceeds into Exor's own shares at a sizable holding company discount, via an efficient one-time Dutch auction. Alongside that move, Exor increased its stake in Philips at good prices to roughly a 19% stake from 15% earlier in the year and supported the complex sale of CNH's spinoff Iveco Group's two separate businesses. Yet the market's cooling toward Ferrari and a weak stock market year for both Stellantis and CNH (despite value per share at both not moving much) have weighed on Exor's quoted price. |
| JEF | questions emerged around Jefferies' potential exposure to the First Brands bankruptcy, and we exited the remainder of the position that we began trimming in January |
| LTM | LATAM Airlines Group, the third largest contributor, is a leading commercial airline in South America that was added to the Fund in 2023. Needless to say, the airline industry had been hit extremely hard by the pandemic, although Latin America was arguably among the hardest hit of all, as the region's air travel was severely restricted, while its airlines were generally not provided with government assistance, unlike in the cases of some airlines in Europe, North America, and Asia. The consequences for much of the industry in Latin America were dire, with numerous carriers in the region (including LATAM) either entering bankruptcy or negotiated settlements with creditors outside of bankruptcy. Shares of LATAM were purchased in the Fund in 2023, shortly after its emergence from bankruptcy. The stigma of the bankruptcy and the sting of the pandemic repelled investors, enabling the Fund to purchase shares at what we believed to be a modest valuation that, again, priced in very low expectations. This was despite our view that LATAM had a much-improved financial profile, competitive position, and cost structure post-bankruptcy, as that process enabled LATAM to meaningfully reduce its debt load and significantly reduce operating costs through headcount reductions, supplier contract renegotiations, and other efficiency initiatives. Since then, LATAM shares have benefited from a recovery and growth in passenger volumes as the region continues to recover from the severe 2020-2021 downturn, and in 2025, performance was driven by impressive business results that have resulted in increased profitability, share repurchases, and improved analyst expectations. |
| NTCO3.SA | This negatively impacted Brazilian equities and led to weakness in the strategy's holdings including Bradesco and Natura. |
| STAN.L | Standard Chartered was the largest contributor to the Fund's performance in 2025. It contributed 8.5% to NAV. Inclusive of dividends, the shares doubled in value. We took some gains towards the end of the year, selling $2mn worth of shares. We continue to trim the position as the shares rise. The success of Standard Chartered's turnaround became evident during the year. It is generating a decent return on equity. The bank is now well-placed to benefit from its strong position in high growth markets particularly leveraging its cross-border trade network in Corporate Banking as well as a compelling proposition in Wealth & Retail Banking. At the beginning of 2025, the shares traded at less than 0.7x book value. They now trade at 1.2x book value and 10.6x 2026 estimated earnings. The shares still trade below fair value and the company continues to buy back its own shares. |
| TARS | Other strong performers in the quarter, primarily driven by strong earnings results, included Tarsus Pharmaceuticals |
| TSGYO.IS | Türkiye Sigorta, the Turkish non-life insurer that we have written about a number of times since adding its shares to the Fund in 2023. We believe Türkiye Sigorta has long boasted a number of attractive attributes, including a leading position in a market that is underpenetrated, offering meaningful long-term growth potential given an expanding economy. However, in this case, the low expectations surrounding the stock at the time of the Fund's purchase were driven by general investor flight from Turkey, amid unorthodox economic policies and raging inflation that reached a 24-year high of over 85% in October 2022. Such an environment was incredibly painful for insurance companies, which faced dramatically rising costs of claims, but could only adjust premium rates when existing policies expire. Although this resulted in insurance underwriting losses (and weighed on the stock price), we believed it also created an interesting longer-term opportunity to invest in a high-quality business at a heavily discounted price. Since then, Türkiye Sigorta has been a significant contributor to performance, driven by much improved insurance underwriting profitability (as policies reset at higher prices as expected) as well as by increased investment portfolio income, as the Turkish Central Bank was eventually forced to adopt a more orthodox approach to monetary policy and began raising interest rates aggressively out of necessity. Importantly, Turkey is far from out of the woods – inflation is still at roughly 30% – but sentiment was so dire and expectations were so low that even modest improvements and reasons to consider cautious optimism resulted in significant gains. |
| VAL | Examples include Tidewater, Valaris, Constellation Brands, Diageo and Trex. We have discussed TDW and VAL previously. VAL: ~$75M repurchased in the most recent quarter; ~$600M program ongoing |
| VALT.L | South Africa-based Valterra – formerly known as Anglo American Platinum prior to its June 2025 separation from Anglo American – is the world's largest producer of Platinum Group Metals (PGMs), a group that includes platinum, palladium, and rhodium. At the time of the Fund's initial purchase in late-2024, expectations surrounding the stocks of PGM producers were arguably rock-bottom. Platinum prices had slumped for the better part of the previous 15 years, as rising electric vehicle (EV) adoption led to bleak forecasts of future demand for platinum, which is used in emission reduction applications in internal combustion engine and hybrid vehicles. By the end of 2024, platinum prices had fallen roughly 30% from 2021 levels, with some estimates suggesting that nearly 40% of global PGM production had become uneconomic at those prices. Valterra shares had declined by over 65% in USD terms from January 2022 through December 2024. But while the market's expectations arguably couldn't get lower, fundamentals were actually showing signs of improvement. Producers were forced to cut higher-cost production and reduce investment in future PGM supply, while demand was proving more resilient than the consensus had expected amid disappointing growth in EV adoption. In 2025, with the platinum market in a supply deficit for its third consecutive year, and a number of major auto manufacturers walking back their EV-related ambitions given their numerous challenges, the market began to notice. Platinum prices, fueled even further by increased interest in precious metals, surged from previously depressed levels, driving significant gains for Valterra shares in Q4 and 2025. |
| Ticker | Put/Call | Company Name | Industry | Value (M) | Shares | Weight % | Shares Purchased/Sold | Change in Share % | Market Cap (M) |
|---|---|---|---|---|---|---|---|---|---|
| JEF | - | JEFFERIES FINANCIAL GROUP ORD | Financials | 37.8M | 609,721 | 16.3% | -70,122 | -10.3% | 11,103.5M |
| WPM | - | WHEATON PRECIOUS METALS ORD | Materials | 36.2M | 307,902 | 15.6% | -90,445 | -22.7% | 65,810.7M |
| NTR | - | NUTRIEN ORD | Materials | 32.1M | 519,789 | 13.8% | -75,832 | -12.7% | 34,197.5M |
| VAL | - | VALARIS ORD | Energy | 30.6M | 607,897 | 13.2% | -100,117 | -14.1% | 6,320.7M |
| BBD | - | BANCO BRADESCO ADR REPSTG 1 PRF | Financials | 27.7M | 8,303,820 | 11.9% | -1,904,170 | -18.7% | 41,832.1M |
| ARCO | - | ARCOS DORADOS HOLDINGS CL A ORD | Consumer Discretionary | 26.1M | 3,556,906 | 11.3% | 226,912 | 6.8% | 1,786.4M |
| BN | - | BROOKFIELD CL A ORD | Financials | 10.5M | 227,939 | 4.5% | 70,788 | 45.0% | 106,643.4M |
| GFR | - | GREENFIRE RESOURCES ORD | Energy | 8.1M | 1,693,492 | 3.5% | 1,693,492 | New Buy | 747.4M |
| DOUG | - | DOUGLAS ELLIMAN ORD | Real Estate | 6.9M | 2,925,990 | 3.0% | 0 | No Change | 221.6M |
| TDW | - | TIDEWATER ORD | Energy | 5.2M | 102,229 | 2.2% | 0 | No Change | 3,503.1M |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| GFR | - | $8.1M | 2M | - | 3.49% |
| NFGC | - | $5.0M | 2M | - | 2.16% |
| BN | - | $2.5M | 71K | 45.0% | 4.51% |
| ARCO | - | $1.8M | 227K | 6.8% | 11.26% |
| CVE | - | $209.4K | 12K | - | 0.09% |
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| WPM | - | $7.0M | 90K | -22.7% | 15.60% | Decreased |
| BBD | - | $4.1M | 2M | -18.7% | 11.92% | Decreased |
| VAL | - | $3.9M | 100K | -14.1% | 13.21% | Decreased |
| NTR | - | $3.7M | 76K | -12.7% | 13.83% | Decreased |
| JEF | - | $3.7M | 70K | -10.3% | 16.29% | Decreased |
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| Financials | 36.24% | 34.27% | -1.97% |
| Materials | 36.90% | 31.60% | -5.30% |
| Energy | 20.88% | 19.01% | -1.87% |
| Consumer Discretionary | 10.49% | 11.26% | +0.77% |
| Real Estate | 2.99% | 2.99% | +0.00% |
| Other | 0.97% | 0.87% | -0.10% |
| Symbol | Company | Filed By | Filing Date | Filing |
|---|---|---|---|---|
| DESP | Despegar.com Corporation | Moerus Capital Management LLC | Nov 14, 2024 | SC 13G/A |
| DESP | Despegar.com Corporation | Moerus Capital Management LLC | Feb 14, 2024 | SC 13G/A |
| TDW | TIDEWATER INC | Moerus Capital Management LLC | Feb 14, 2023 | SC 13G/A |
| DESP | Despegar.com Corporation | Moerus Capital Management LLC | Feb 14, 2023 | SC 13G |
