Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Orbis International Equity delivered another positive year in 2025 as the portfolio shifted from post-pandemic dislocations to more typical idiosyncratic bottom-up investments. Performance was driven by diverse holdings including early-stage neocloud business Nebius, Irish bank positions, and improving Asian consumer companies like Prudential and Jardine Matheson. The manager sees attractive opportunities in biotech following the sector's epic bust after COVID, with companies like Genmab trading below the present value of marketed drugs while offering world-class discovery platforms for free. Entertainment remains compelling with IMAX benefiting from recognition that theatrical windows maximize IP value. Macro risks include high government debt levels and potential reversal of the long-standing cycle that concentrated capital in US assets. However, non-US equities trade at attractive valuations with high dispersion, and secular growth drivers in healthcare and entertainment provide compelling investment opportunities. The approach remains constant: deep fundamental work to find businesses priced significantly below intrinsic worth across global markets.
Focus on idiosyncratic bottom-up investments in undervalued businesses across global markets, particularly in biotech and entertainment sectors where structural dislocations have created attractive opportunities.
The manager remains optimistic about opportunities in the changing environment, particularly in biotech and entertainment sectors. While macro dynamics may be shifting away from US concentration, the approach remains constant on deep bottom-up work to find undervalued businesses. The portfolio is positioned to benefit from normalization of valuations and secular growth trends in healthcare and entertainment.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Dec 31 2025 | 2025 Q4 | GMAB, ICLR, IMX, J36.SI, PRU.L | Biotech, Bottom-up, Entertainment, global, international, value | - | Biotech has become an especially fruitful hunting ground following the epic bust after COVID boom. The sector typically suffers from structural overvaluation but rising rates, geopolitical noise around drug pricing, and capital draw towards AI has created opportunities to acquire innovative businesses at less than present value of marketed drugs. The theatrical window remains key to maximizing IP value as content gains powerful halo effect from theatre runs while being cash-flow generative. Recent bidding war for Warner Bros Discovery highlights immense value placed on scarce content and platforms for developing high-value IP. Portfolio has naturally shifted to more typical collection of idiosyncratic bottom-up investments as post-pandemic dislocations normalized. Focus remains on finding businesses priced significantly less than intrinsic worth through deep fundamental analysis. |
| Oct 8 2025 | 2025 Q3 | - | Asia, consumption, Corporate Reform, Dividend, value |
JAR LN ASII IJ SE |
The letter argues that Asias transition from export dependence toward consumer-led growth creates mispriced equity opportunities. Orbis focuses on high-quality businesses positioned to capture local spending growth amid improving fundamentals. Consumption remains investable as long-term economic rebalancing reshapes profit pools. |
| Aug 7 2025 | 2025 Q2 | 8802 JP, B3SA3 BZ | currency weakness, governance reform, International Equities, Revaluation, valuation | 8802 JP | The commentary highlights long-term revaluation potential in non-U.S. markets driven by cheap currencies, governance reform, and depressed asset prices. Japan and Brazil are emphasized as examples where valuation, macro discipline, and structural change intersect. Diversification away from crowded U.S. assets is positioned as increasingly attractive. |
| Mar 31 2025 | 2025 Q1 | 2502 JP, 3391 JP, 8795 JP | - | - | |
| Dec 31 2024 | 2024 Q4 | 2107 HK, 7974 JP, DIS | - | - | |
| Sep 30 2024 | 2024 Q3 | ABBV, GMAB DC, JNJ, NVO, REGN, ROG SW | - | - | |
| Jun 30 2024 | 2024 Q2 | 7974 JP, A5G LN, BIRG LN, RR/ LN | - | - | |
| Mar 31 2024 | 2024 Q1 | 000810 KS, 012450 KS, 055550 KS, 086790 KS, 105560 KS | - | - | |
| May 1 2024 | 2023 Q4 | ASAI | - | - | |
| Sep 30 2023 | 2023 Q3 | RNR | - | - | |
| Jun 30 2023 | 2023 Q2 | 000810 KS, ASII IJ, JM SP | - | - | |
| Mar 31 2023 | 2023 Q1 | 012450 KS, MHI, RHM GR | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
BiotechnologyHealthcare industry positioned for catch-up growth after several years of below-trend performance. Government spending expected to increase relative to feared cuts, with companies signaling improvement in revenue growth. Focus on 'picks & shovels' businesses serving the industry. |
Life Science Tools Pharmaceuticals CRO & CDMO Healthcare Research |
EntertainmentLive entertainment companies like Sphere Entertainment and Madison Square Garden Entertainment showed strong performance driven by robust consumer demand for concerts and live shows. The success of The Wizard of Oz at Sphere demonstrates the venue's potential for scalable franchise opportunities both domestically and internationally. |
Live Sports Entertainment Media Event Ticketing Venues | |
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 Q3 |
AsiaThe firm is increasing exposure to Asian markets as part of geographic diversification away from Americas where valuations are viewed as frothy. The team conducted extensive travel across China, Indonesia, and other Asian markets for research and relationship building. |
China Indonesia Diversification Valuation Research |
Consumption |
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Dividend |
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Reform |
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ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic | |
| 2025 Q2 |
ValuationPrice discipline and margin of safety are central to investment decisions. The firm emphasizes that price synthesizes expectations, risks, and narratives, with low entry prices providing protection against adverse scenarios. They monitor implied real IRR as a key metric for prospective returns. |
IRR Margin of Safety Price Discipline Asymmetry Risk Premium |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 8, 2025 | Fund Letters | Timo Smuts | JAR LN | Jardine Matheson Holdings Ltd. | Industrials | Industrial Conglomerates | Bull | NYSE | Allocation, Asia consumer, buybacks, conglomerate, dividend, recovery, valuation | Login |
| Oct 8, 2025 | Fund Letters | Timo Smuts | ASII IJ | Astra International Tbk | Consumer Staples | Automobile Distributors | Bull | NYSE | Autos, Consumption, dividend, Finance arm, market share, Mining Services, valuation | Login |
| Oct 8, 2025 | Fund Letters | Timo Smuts | SE | Sea Limited | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | e-commerce, Gaming, growth, leadership, operating leverage, Payments, Southeast Asia | Login |
| Aug 7, 2025 | Fund Letters | Timo Smuts | 8802 JP | Mitsubishi Estate Co., Ltd. | Real Estate | Real Estate Operating Companies | Bull | New York Stock Exchange | Currency, Governance, Japan, realestate, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| GMAB | Genmab, our largest position, is a prime example. Investors often flee when a patent cliff for a flagship product like Genmab's Darzalex (late 2020s/early 2030s) looms, fixating on the certain loss of legacy revenue while completely discounting what might replace it. Meanwhile, a slate of late-stage assets and growing partnered drugs are only beginning to contribute revenue well into the 2030s. The company's R&D machine, still run by scientist-founder Dr. Jan van de Winkel, fosters disciplined capital allocation and scientific excellence, and its recent acquisition of ProfoundBio slots antibody-drug-conjugate technology neatly into its core expertise. Yet, the market treats Genmab as a single-product story, which allowed us to acquire the stock at a price lower than the cash flows from its commercialised drugs alone, essentially getting a world-class discovery platform (which has yielded eight approved medicines thus far) for free. |
| ICLR | We also decided to exit our relatively small position in ICON plc. We remain optimistic about Icon's long-term prospects but growth for the company in the short to intermediate term still appears challenged to us. Without the conviction to add to our existing weight we feel it is better to reallocate to other opportunities where the business momentum is stronger. |
| IMX | We also remain enthused by the opportunity in the entertainment space, with Canada's IMAX being a key holding. Furthermore, IMAX itself has emerged as a keystone asset. Its scarce supply of exceptional technology, both in production and high-quality screens, is now booking into 2029, with some of the best filmmakers struggling to secure a slot. The brand is truly global and ubiquitous, perhaps worth the $2 billion market cap alone, and is now tapping into the burgeoning demand for local language content. |
| J36.SI | our Asian investments performed strongly with Alibaba and Jardine Matheson up 63% |
| PRU.L | tangible signs of fundamental and governance improvement in some of our deeply out-of-favour Asian consumer companies like Prudential |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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