| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.3% | 5.7% | -5.8% |
Olesen Value Fund returned 5.7% in Q2 2026, driven primarily by US holdings, though the manager reduced US positions that became less undervalued and increased non-US investments where better opportunities exist. The fund's core thesis centers on exploiting AI-driven market distortions where boring physical economy businesses are being sold indiscriminately to fund technology investments, creating exceptional value opportunities in homebuilding, distribution, and specialty finance. UK homebuilders remain the largest conviction area, trading at 66% of tangible book value and roughly half of intrinsic value despite strong balance sheets, stable long-term demand, and inherent land value. The manager added to a European niche finance company showing growth resurgence and a building product distributor investing for future expansion during an industry slowdown. Portfolio trimming included Hingham Savings for valuation reasons and Solitron Devices for position sizing after significant appreciation. The manager expects substantial portfolio value increases over coming years despite anticipating mediocre broader market returns driven by expensive US valuations. The fund maintains a patient, concentrated approach focused on businesses with strong fundamentals trading at significant discounts outside the US.
The fund pursues global unconstrained value investing, finding exceptional opportunities in overlooked physical economy businesses trading at significant discounts to intrinsic value, particularly outside the US where investor psychology is less optimistic and AI-driven market distortions create mispricings in non-technology sectors.
Manager expects portfolio value to increase substantially over next few years based on economic fundamentals relative to current prices and historical trading multiples. However, broader market likely to generate mediocre returns driven by expensive US market. Manager confident in eventual very good returns on UK homebuilder investments and expects 60-80% returns on European building product distributor over next couple years as fundamentals improve and multiples revert.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 20 2026 | 2026 Q2 | HIFS, SODI | AI, Distribution, Europe, Homebuilders, small caps, Specialty Finance, United Kingdom, value | - | Olesen pursues global value investing, exploiting AI-driven market distortions by buying overlooked physical economy businesses at deep discounts. UK homebuilders are core holdings trading at 66% of book value and half of intrinsic value with strong balance sheets and stable demand. European micro caps in specialty finance and distribution offer 60-80% upside as fundamentals improve. Portfolio concentrated in non-US opportunities where investor psychology creates better value. |
| Apr 13 2026 | 2026 Q1 | SODI | defense, Homebuilders, long-term, undervalued, United Kingdom, value | - | Olesen Value Fund fell 10.9% in Q1 as UK homebuilder positions declined sharply due to Iran war concerns. Manager believes portfolio is most undervalued since 2009 crisis, trading at half intrinsic value. Defense holding Solitron surged 32% on earnings growth and acquisition interest. Fund positioned for potential doubling over next few years through concentrated value investing approach. |
| Jan 23 2026 | 2025 Q4 | JPM, MN, VTU.L | contrarian, global, Long-only, Micro Cap, small caps, value |
MN JPM VTU LN |
Olesen Value Fund targets neglected micro and small cap securities trading below intrinsic value through bottom-up fundamental analysis. The concentrated portfolio of 10-20 positions has delivered 13.1% annualized returns since 2008 inception versus 11.8% for global markets, capitalizing on systematic mispricings where institutional competition is limited. |
| Oct 29 2025 | 2025 Q3 | CAMB.L, JPM, MN, VTU.L | concentrated, contrarian, global, Long-only, small caps, value | VTU LN | Concentrated value fund targeting neglected micro/small caps and contrarian opportunities trading below intrinsic value. Bottom-up approach with 10-20 positions across global markets. Since inception: 697% cumulative returns (13.2% annualized) vs 526% for MSCI ACWI. Manager has 100% skin in the game. High volatility but strong long-term wealth compounding for patient investors. |
| Aug 20 2025 | 2025 Q2 | CAMB.L, JPM, MN, VTU.L | contrarian, Fundamental, Long-only, small caps, value |
MN JPM VTU LN |
Olesen Value Fund targets neglected micro and small cap securities trading below intrinsic value, capitalizing on systematic market inefficiencies where institutional competition is minimal. The concentrated 10-20 position portfolio has delivered 13.2% annualized returns since inception versus 11.6% for global markets, focusing on fundamental value opportunities across developed markets with flexible, unconstrained mandate. |
| Apr 15 2025 | 2025 Q1 | C | banks, Europe, Homebuilders, Micro Cap, Quality, Recession, undervalued, value | - | Olesen Value Fund's portfolio trades at 15-year valuation lows despite strong fundamentals across European homebuilders and regional banks. Manager pivoted from complex institutions like Citigroup toward proven, simple businesses with exceptional track records. Portfolio offers significant upside through multiple expansion while maintaining downside protection through strong balance sheets and cash-generative business models. |
| Jan 20 2025 | 2024 Q4 | AVHAF | banks, European, Homebuilders, Quality, small caps, value | - | Value-focused fund targeting proven businesses with strong balance sheets at significant discounts, particularly European micro/small caps. Portfolio of 12 investments shows estimated 20-150% upside potential across banks, homebuilders, and industrial companies. Recent underperformance reflects market preference for U.S. tech/growth over value approach, but manager confident fundamentals will eventually drive strong returns. |
| Oct 18 2024 | 2024 Q3 | BWY.L, CRST.L, HIFS | Banking, Europe, Homebuilders, Recovery, small cap, undervaluation, value |
HIFS BWY.L |
Fund gained 9.8% in Q3 as small cap value stocks rebounded. Core holdings include Hingham Savings, a hidden gem bank beginning earnings recovery, and Bellway, an undervalued UK homebuilder with zero net debt. Manager sees significant upside in current positions trading at low multiples of normalized earnings. |
| Dec 10 2023 | 2023 Q3 | GS | banks, Cyclical, Europe, risk management, small cap, value | - | Value-focused manager reduced bank exposure after selling Goldman Sachs, while adding European small cap at deep discount during cyclical downturn. Portfolio includes exceptional banks trading at 9x earnings despite strong fundamentals. Manager maintains concentrated approach with significant personal investment, focusing on permanent capital preservation while seeking best risk-adjusted opportunities. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIManager views AI as creating significant market distortions where boring, non-AI stocks are being sold indiscriminately to fund AI investments. The fund benefits by investing in physical economy businesses (homebuilding, packaging, construction materials) that won't be disrupted by AI but are being undervalued due to investor focus on AI themes. Uncertainty remains about AI winners, losers, and ultimate ROI on massive AI investments. |
Technology Valuation Disruption |
HomebuildersUK homebuilders are core holdings that declined ~30% in March due to Iran war concerns but recovered only modestly in Q2. Manager views these as exceptional long-term value opportunities trading at 66% of tangible book value and ~5x mid-cycle earnings, worth roughly double current prices. Strong balance sheets, stable long-term demand drivers, and inherent land value provide downside protection while ongoing earnings generation and buybacks create value accretion. |
United Kingdom Real Estate Value Cyclicals | |
ValueManager pursues global unconstrained value investing, finding significantly more attractive opportunities outside the US where investor psychology is less optimistic. Portfolio companies are undervalued relative to economic fundamentals and historical trading multiples, with expected substantial value increases over the next few years despite broader market likely generating mediocre returns due to expensive US market valuations. |
Valuation Contrarian Long-term | |
Specialty FinanceSmall family-controlled European niche finance company showing growth resurgence after regulatory uncertainty period. Family has created impressive shareholder value through focus on underserved niches, organic development, opportunistic pivoting, and conservative underwriting. Growth revival not yet reflected in stock price, with expected near-doubling over next couple years as valuation multiple reverts to historical levels. |
Europe Growth Family-owned | |
DistributionEuropean building product distributor continues delivering steady earnings despite sluggish demand, likely gaining market share as it has historically. Company investing in warehouse capacity expansion during industry slowdown, setting stage for next growth phase. Trading at 11x trailing earnings with expected revenue, margin, and earnings increases over next few years, targeting 60-80% return as multiple reverts to historical average. |
Europe Building Materials Market Share | |
| 2026 Q1 |
HomebuildersUK homebuilders represent the fund's largest positions but declined drastically due to the Iran war. Manager believes these companies are extremely undervalued at less than half their intrinsic value, with strong balance sheets, zero net debt, and exposure to constrained UK land supply. The fundamental case remains intact despite short-term macro headwinds. |
Housing Construction Land Mortgages Interest Rates |
DefenseSolitron Devices, a small defense component manufacturer, reported significant earnings increases and potential acquisition interest. Multi-year U.S. government supply agreements with defense contractors indicate substantial future profit growth due to high operating leverage and increased missile production capacity following the Ukraine conflict. |
Military Components Missiles Contracts Acquisition | |
ValueThe portfolio is positioned as the most undervalued since the 2009 financial crisis, with opportunities in certain value stocks especially outside the U.S. Manager estimates the portfolio could double in value over the next few years based on intrinsic value assessments of individual holdings. |
Undervalued Intrinsic Value Multiples Opportunities Long-term | |
| 2025 Q4 |
AIAI was a dominant market driver of U.S. stocks and continues to influence market leadership. The AI-driven rally led to historic levels of market concentration with just five stocks accounting for nearly 45% of the S&P 500's total return in 2025. Strong AI-related investment was the backbone of U.S. growth in 2025. |
Artificial Intelligence Technology Market Concentration Growth Innovation |
RatesThe Federal Reserve has cut interest rates 1.75% since 2024, easing financial conditions and supporting markets. The Fed resumed rate cuts in September and markets expect further easing into 2026, albeit at a slower pace. Historically, equities have responded favorably following the restart of easing cycles. |
Federal Reserve Interest Rates Monetary Policy Easing Financial Conditions | |
InflationThe inflation storm that dominated recent years appeared to be easing, at least in the short term. November and December inflation surprised to the downside, easing investor concerns about persistent inflation pressures. However, inflation is likely to remain above target near term. |
Inflation Federal Reserve Economic Data Price Pressures | |
DollarThe U.S. dollar fell more than 9% during 2025, pressured by a high starting valuation and mounting concerns about global investor concentration in U.S. assets. With the Federal Reserve still focused on easing policy, narrowing interest rate differentials may drive a further decline in the dollar. |
US Dollar Currency Exchange Rates International | |
| 2025 Q3 |
ValueBottom-up fundamental value investing philosophy inspired by Warren Buffett, focusing on good businesses with strong balance sheets trading below intrinsic value. Seeks to profit from market overreactions and non-rational factors that create temporary mispricings. |
Contrarian Undervalued Intrinsic Value Margin of Safety Fundamental Analysis |
Small CapsPrimary focus on neglected micro and small cap securities with low liquidity that are ignored by most professional investors. Large systemic opportunity exists due to few qualified competitors and temporary imbalances between supply and demand. |
Micro Cap Neglected Liquidity Institutional Undervalued | |
| 2025 Q2 |
ValueFund focuses on bottom-up fundamental value investing inspired by Warren Buffett, seeking good businesses with strong balance sheets trading below intrinsic value. Emphasizes buying securities that are out of favor for non-rational reasons or neglected by Wall Street due to size constraints. |
Undervalued Intrinsic Value Contrarian Fundamental Analysis Balance Sheet |
Small CapsPrimary focus on neglected micro and small cap securities with low liquidity that are ignored by most professional investors. This creates systemic opportunities due to few competitors and potential for large over- or undervaluation relative to intrinsic business value. |
Micro Cap Liquidity Neglected Professional Investors Undervaluation | |
| 2025 Q1 |
ValuePortfolio trades at most undervalued levels in 15 years with significant upside potential across holdings. Manager emphasizes buying good companies at good prices with strong downside protection and multiple expansion opportunities. |
Undervalued Multiple Upside Downside Protection |
HomebuildersMultiple investments in European homebuilders trading at substantial discounts to book value despite strong business models and cash generation capabilities. Manager sees 60-150% upside as housing demand normalizes from interest rate impacts. |
Housing Book Value Cash Flow Cyclical Recovery | |
Regional BanksThree bank investments focused on smaller institutions with exceptional track records, conservative lending, and significant management ownership. These banks offer superior risk-adjusted returns compared to large complex institutions. |
Credit Lending Management Ownership Conservative | |
QualityPortfolio emphasizes proven business models with long consistent track records, strong balance sheets, and resilience to economic downturns. Manager learned from Citigroup disappointment to focus on higher quality companies. |
Track Record Balance Sheet Resilience Consistency Proven | |
| 2024 Q4 |
ValueFund focuses on attractively priced shares in good, proven businesses trading at low multiples of relevant valuation metrics. Portfolio companies trade at significant discounts with estimated 50-150% upside potential when fundamentals are better reflected in market prices. |
Value Undervalued Multiples Fundamentals Discount |
Small CapsManager finding best investment opportunities among European micro/small caps which have been out of favor. Portfolio heavily weighted toward micro and small cap companies across multiple geographies with little institutional following. |
Small Caps MicroCap Illiquid Institutional European | |
QualityInvestments target companies with proven business models, very long consistent track records of good profitability, very strong balance sheets, and businesses not at risk of significant technological disruption. |
Quality Balance Sheet Profitability Track Record Proven | |
| 2024 Q3 |
ValueSmall cap value stocks regained favor after underperforming large tech/growth stocks in 2023 and first half of 2024. The divergence partially reversed in July as investors questioned whether it had gone too far, positively impacting portfolio companies. |
Small Cap Value Investing Market Rotation Undervaluation Recovery |
Community BanksHingham Savings represents a hidden gem micro-cap bank with exceptional lending practices resulting in almost no loan losses over 31 years. After earnings declined due to rapid rate hikes, the recovery process has begun as loan portfolio yields increase faster than liability costs. |
Regional Banking Interest Rates Credit Quality Earnings Recovery Hidden Gem | |
HomebuildersBellway plc is a financially resilient UK homebuilder trading below book value despite strong historical performance and zero net debt. The company is well-positioned for recovery when UK housing demand improves from the current slump. |
UK Housing Construction Balance Sheet Recovery Play Cyclical | |
| 2023 Q3 |
ValueManager focuses on opportunistic value investing, purchasing stocks at significant discounts to intrinsic value. New European small cap investment purchased at 0.81x tangible book value and 6-7x mid-cycle earnings. Bank investments trading at average 9.0x P/E despite good growth prospects. |
Value Cyclical Book Value Earnings Multiple Discount |
Small CapsNew investment made in European small cap company with strong fundamentals but facing cyclical headwinds. Manager notes that small, illiquid investments are not followed by institutional investors, creating valuation opportunities. |
Small Cap Europe Illiquid Institutional |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 23, 2026 | Fund Letters | Christian Olesen | MN | Manning & Napier Inc. | Financials | Asset Management & Custody Banks | Bull | New York Stock Exchange | buybacks, cash, Liquidation, mispricing, turnaround | Login |
| Jan 23, 2026 | Fund Letters | Christian Olesen | JPM | JPMorgan Chase & Co. | Financials | Diversified Banks | Bull | New York Stock Exchange | Banks, contrarian, intrinsic value, Sentiment, Volatility | Login |
| Jan 23, 2026 | Fund Letters | Christian Olesen | VTU LN | Vertu Motors plc | Consumer Discretionary | Automobile Retailers | Bear | New York Stock Exchange | Auto retail, capital allocation, Cyclicality, execution risk, Margins | Login |
| Oct 29, 2025 | Fund Letters | Christian Olesen | VTU LN | Vertu Motors plc | Consumer Discretionary | Automotive Retail | Bear | NYSE | Auto retail, Brexit, capital recycling, execution risk, Margins, turnaround | Login |
| Aug 20, 2025 | Fund Letters | Christian Olesen | MN | Manning & Napier, Inc. | Financials | Asset Management & Custody Banks | Bull | New York Stock Exchange | Assetmanagement, buybacks, financials, Microcaps, turnaround, Value | Login |
| Aug 20, 2025 | Fund Letters | Christian Olesen | JPM | JPMorgan Chase & Co. | Financials | Diversified Banks | Bull | New York Stock Exchange | Banks, financials, Largecap, Quality, Value, warrants | Login |
| Aug 20, 2025 | Fund Letters | Christian Olesen | VTU LN | Vertu Motors plc | Consumer Discretionary | Specialty Stores | Bear | New York Stock Exchange | Autos, Margins, retail, Rollups, turnaround, UK | Login |
| Oct 18, 2024 | Fund Letters | Olesen Value Fund | HIFS | Hingham Institution for Savings | Financials | Thrifts & Mortgage Finance | Bull | NASDAQ | asset-liability mismatch, Bank, conservative lending, Interest Rate Normalization, Management Succession, Micro-cap, ROE recovery, Value | Login |
| Oct 18, 2024 | Fund Letters | Olesen Value Fund | BWY.L | Bellway plc | Consumer Discretionary | Homebuilding | Bull | London Stock Exchange | cash generation, Cyclical Recovery, homebuilder, Land Position, Planning Permission, strong balance sheet, UK housing, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| HIFS | The management team and board members own approx. 30% of this exceptional bank, which has a truly outstanding long-term track record of profitability and nearly no loan losses since the Gaughen family gained management and board control in 1993, and I think they continue to be great stewards of shareholders' capital. The stock price has increased somewhat since we bought it and it is therefore somewhat less undervalued at this time. Consequently, it simply made sense to sell shares in the bank to fund our purchases of the two above-mentioned European micro caps, which currently trade at a larger discount to my estimate of intrinsic value than Hingham Savings stock does. |
| SODI | I took some more money off the table when I sold more shares in Solitron Devices, the small manufacturer of electronic components for missiles, military aircraft, surgical instruments and other applications in aerospace, defense and medical devices. The company's long-awaited surge in production and earnings continues to accelerate and the company recently hired an investment banker to assist with a potential sale of the company. However, given the huge increase in the stock price since we bought it several years ago, this position had become too large in our portfolio, so it made sense to reduce it and re-allocate the freed up capital to the two above-mentioned European opportunities. |
| 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 | |||
