| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.4% | 4.66% | - |
Palm Harbour Capital returned 4.66% in Q2 2026, bringing one-year returns to 10.6% and inception-to-date annualized returns to 10.4%. The fund underperformed in June due to Asian exposure, where capital gravitated to narrow technology names while attractively valued businesses experienced weaker performance despite unchanged fundamentals. Korea's introduction of leveraged single-stock ETFs caused extreme volatility and investor losses exceeding 40%, exemplifying the manager's deep concerns about extreme leverage levels and passive flows distorting markets. Top contributors included Watches of Switzerland (+59.2%), which rebounded strongly on resilient Rolex demand and easing tariff concerns, and Esprinet (+44.1%), benefiting from market share gains and IT spending recovery. Norma continued returning €260 million to shareholders through buybacks at premiums to market. The manager maintains conviction in patient, fundamentally-driven value investing, with the portfolio offering 106% upside at 6.6x P/E and 17% FCF yield. The fund added a Mexican cement company and two Asian names while exiting BW Energy and M Dias Branco. Management remains extremely optimistic about medium-term prospects for smaller, out-of-favor companies.
Palm Harbour Capital maintains a patient, long-term, fundamentally-driven value investment process focused exclusively on cash-producing companies available at very reasonable valuations, with the portfolio trading at 6.6x P/E (net of cash), 17% FCF/EV yield, and 106% upside to estimated NAV.
Manager is extremely optimistic about portfolio prospects and believes the fund will reach its compounded annual return aspiration over time. Views current environment as a great time to be a value investor and is very excited about medium-term prospects. Expects smaller, out-of-favor companies outside major indices to fare well under most conditions in the mid-term despite current market distortions from leverage and passive flows.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 24 2026 | 2026 Q2 | ALHG.PA, LULU, MMB.PA, ONON, PRI.MI, VROE.OL, WOSG.L | Asia, Buybacks, Europe, Leverage, Publishing, small caps, Travel Retail, value | ALHG.PA | Palm Harbour Capital returned 4.66% in Q2 2026 despite June underperformance from Asian holdings caught in leverage-driven market distortions. The manager expresses deep concern about extreme leverage and passive flows creating systemic risks while maintaining strong conviction in fundamentally-driven value investing. Portfolio trades at 6.6x P/E with 106% upside to NAV. Top contributor Watches of Switzerland surged 59% on resilient luxury demand. Management extremely optimistic about medium-term prospects. |
| May 5 2026 | 2026 Q1 | BWO.OL, CNVRG.PS, DAN.MI, IBST.L, PRT.MI, UMG.AS, VAR.OL, VIV.PA | energy, Europe, gaming, long-term, small caps, undervalued, value | - | Palm Harbour Capital's concentrated European value strategy delivered -0.56% in Q1 2026 despite strong individual contributors including South Korean battery maker Vitzrocell (+95.5%) and Norwegian oil producer Vår Energi. The portfolio trades at attractive 6.3x P/E with significant upside potential. Management remains extremely optimistic about medium-term prospects while maintaining disciplined long-term value approach. |
| Jan 20 2026 | 2025 Q4 | 001910.KS, 047440.KS, 086280.KS, 6345.T, ASLI.L, ATYM.L, BSRT, BWO.OL, CIR.MI, CNVRG.PS, DAN.MI, DITO.PS, FLRY3.SA, GLO.PS, KRI.AT, LOMA.BA, MDIA3.SA, PTEC.L, SGF.MI, TEL.PS, TRE.OL, VIV.PA, WOSG.L, WWI.OL | Argentina, Broadband, Cash Generation, Copper, global, Governance, Steel, value |
LOMA ATYM LN 012030 KS DAN IM RHIM LN 6345 JP KRI GA 284740 KS VIV FP BRSL |
Palm Harbour delivered 16% returns in 2025 through disciplined value investing in cash-generative businesses. Key contributors included Argentine cement producer Loma Negra following Milei's victory and copper miner Atalaya Mining. The fund actively managed governance risks while adding Philippines telecom Converge ICT. Portfolio trades at 8.1x P/E with 95% upside to NAV, positioning for strong medium-term prospects. |
| Nov 13 2025 | 2025 Q3 | 111770.KS, AMZN, ATYM.L, CAL.MI, CNVG.PS, DAN.MI, ESP.MI, GOOGL, INDF.JK, LOMA.BA, META, MSFT, NVDA, RHI.L, UMG.AS, VIV.PA | AI, Asia, Copper, Europe, LatAM, small caps, value | - | Palm Harbour Capital delivered 1.57% in Q3 while deliberately avoiding the AI concentration dominating markets. The fund focuses on overlooked small-caps across Asia, Latin America, and Europe with strong cash flows and attractive valuations. Portfolio trades at 9.1x P/E with 91% upside potential, offering compelling diversification from dangerous US mega-cap concentration that now exceeds 2000 bubble levels. |
| Aug 5 2025 | 2025 Q2 | 021240.KS, 086280.KS, 192400.KS, 284740.KS, 5336.KL, 7965.T, HAN.L, HANA.L, PNDXB.ST, PORT3.SA, SHOT.ST | gaming, global, inflation, NAV, small caps, tariffs, value | 192400.KS | Palm Harbour delivered strong Q2 returns of 5.97% with portfolio trading at 8.9x P/E and 97% upside to NAV. Manager extremely optimistic on small cap global value opportunities while avoiding overvalued US markets. Focus on companies with pricing power to outpace inflation amid concerns over tariffs and unsustainable government debt levels. |
| Apr 22 2025 | 2025 Q1 | 4628.T, 6298.T, DAN.MI, ENOG.L, IGT.MI, JST.DE, LTO.MI, NOEJ.DE, OCWN.L, ODET.PA, PPA.AT, SUI.JO, TISG.MI, VRLA.PA | Europe, gaming, small caps, tariffs, Trade Policy, undervalued, value, volatility | SUI.JO | Palm Harbour Capital gained 2.63% in Q1 2025, focusing on undervalued small-cap companies with strong cash generation. Despite Trump tariff concerns creating market volatility, the manager sees buying opportunities in overlooked securities trading at 8.6x P/E with 19% FCF yields. Portfolio positioned defensively with limited US trade exposure while maintaining optimistic outlook on intrinsic value convergence. |
| Mar 5 2025 | 2024 Q4 | 9404.T, BOL.PA, EOAN.L, GSMI.PS, IGT.MI, LTO.MI, MDIA3.SA, ODET.PA, OWIL.L, PPA.AT, PRT.MI, TKA.VI, UMG.AS, VIV.PA | Europe, gaming, global, inflation, Media, Politics, small caps, value | ODET.PA | Palm Harbour Capital's global small cap value fund returned +12.7% in 2024 despite Q4 weakness. The portfolio trades at 8.5x P/E with 98% estimated upside, focusing on overlooked securities while avoiding overvalued US markets. Key holdings include gaming, media, and industrial companies across Europe and Asia. Management remains optimistic about medium-term prospects for disciplined value investing. |
| Oct 16 2024 | 2024 Q3 | CLNX.MC, DAL.L, DAN.MI, GSMI.PS, IBST.L, JST.DE, KRIKRI.AT, MDIA3.SA, OCI.AS, PORT3.SA, SYENS.BR, UNIR.MI, VAR.OL, VRLA.PA | Cash Generation, Cyclical, Europe, small cap, takeovers, value | MDIA3.SA | Palm Harbour delivered +4.4% in Q3 with portfolio trading at 8.9x P/E and 97% upside to NAV. Two takeover offers contributed performance while OCI moves toward liquidation with $11.6 billion asset sales. Manager remains extremely optimistic about value opportunities, positioning in quality businesses at cyclical lows with clear re-rating catalysts. |
| Jul 29 2024 | 2024 Q2 | 0FHO LN, CED IM, DAL LN, GSMI PM, IGT, LNA FP, OCI NA, PPA GA, SOLB BB, TKA AV, WIX LN | - | - | |
| Apr 15 2024 | 2024 Q1 | 1952.T, 9404.T, ALL.AX, CIR.MI, EVRI, FDJ.PA, FLTR.L, HAT.L, IGT, LNW, OCWN, OPAP.AT, PBL.TO, PPA.AT, SYENS.BR, TISG.MI | Buybacks, dividends, Europe, gaming, Media, Ports, small caps, value | IGT | Palm Harbour delivered 4.6% in Q1 with a concentrated value portfolio trading at 8.9x P/E and 101% estimated upside. Strong performance from Japanese holdings benefiting from corporate governance improvements and Brazilian port operations. Added Greek port exposure betting on trade normalization. Management extremely optimistic about medium-term value realization opportunities. |
| Jan 31 2024 | 2023 Q4 | BAYN.DE, IGT, MLCO, OCI.AS, RHIM.L, SOLB.BR, SYENS.BR, TKA.VI | Chemicals, Europe, Japan, special situations, value | SOLB.BR | Palm Harbour delivered 6.3% in Q4 2023 with 13.1% full-year returns, driven by successful special situations including Solvay's spin-off and increased Japanese exposure capitalizing on corporate governance reforms. The concentrated portfolio trades at 8.1x P/E with significant upside potential, positioning for continued value creation through activist situations and undervalued European companies. |
| Oct 30 2023 | 2023 Q3 | 6966.T, AVID, DAN.MI, DHG.L, LNA.PA, OCI.AS, OCN.L, OVS.MI, PCAR3.SA, PORT3.SA, PRT.MI, STEAV.HE, TKA.VI, VRLA.PA | Europe, free cash flow, rates, small caps, Spin-Offs, value | OCN.L | European small-cap value fund targeting 10% FCF yields gained 1.86% in Q3 despite sector weakness. Portfolio trades at 7.5x P/E with 114% upside to NAV. Manager extremely optimistic about prospects, viewing current derating of quality companies with strong balance sheets as counterintuitive setup for exceptional future performance. |
| Aug 8 2023 | 2023 Q2 | 086280 KS, 200 HK, 4966 JP, IGT, LNA FP, LTMC IM, MTX GR, OCI NA, PRT IM, RHIM LN, VARRY | - | - | |
| Apr 23 2023 | 2023 Q1 | CAL.MI, CIR.MI, DAN.MI, GSMI.PS, IGT, IHRT, OCI.AS, PRT.MI, TESB.BR, TKA.VI, VAR.OL | Banking, dividends, Europe, portfolio, Steel, Telecommunications, value | TKA.VI | European value fund delivered 7.2% in Q1 2023 with portfolio trading at 8.5x P/E and 19% FCF yield. Strong performance from dividend growers like Ginebra San Miguel and industrial plays like Danieli. Added Telekom Austria position for defensive telecom model and tower spin-off catalyst. Manager extremely optimistic about value opportunities. |
| Nov 2 2023 | 2022 Q4 | BOAVSTB BZ, CALT IM, IBST LN, IGT, IHRT, JST GR, LNA FP, MOH GA, MTX GR, RHIM LN, VRLA FP | - | - | |
| Nov 15 2022 | 2022 Q3 | 4966 JP, BAYA GR, GPL SJ, GSMI PM, HAT LN, IGT, MHZ GR, OCI NA, ODF GR, RHIM SW, UNIR IM | - | - | |
| Jun 30 2022 | 2022 Q2 | BOAS3.SA, DNO.OL, IGT, IHRT, MOH.AT, OCI.AS, PRT.MI, RHI.L, VRLA.PA | commodities, energy, Europe, inflation, Recession, Refiners, small cap, value |
VRLA.PA MOH.AT |
Palm Harbour Capital's European small-cap value fund declined 8.5% in Q2 2022 amid inflation and recession fears, but management sees significant opportunity ahead. The portfolio trades at 7x P/E with 134% estimated upside, led by refining and industrial holdings. Despite macro headwinds, the manager remains bullish on deploying cash into quality companies at attractive valuations. |
| Mar 31 2022 | 2022 Q1 | BAYN.DE, BOAS3.SA, DAN.MI, DNO.OL, JST.DE, MLCO, OCI.AS, PRT.MI, RHI.L, VAR.OL, WIX.L | commodities, energy, Europe, Fertilizers, inflation, mid cap, value |
WIX.L BOAS3.SA |
Palm Harbour Capital's Q1 2022 performance was supported by fertilizer and energy exposure amid commodity inflation from the Ukraine war. The fund is positioned with high-quality companies having pricing power and hard assets to navigate the inflationary environment. Despite short-term volatility, management sees significant portfolio upside and maintains optimism for mid-teens compound returns. |
| Dec 30 2021 | 2021 Q4 | 0041.HK, 4966.T, AVID, IGT, IHRT, OCI.AS, OVS.MI | Asia, Europe, Fertilizers, gaming, Hotels, inflation, value | - | Palm Harbour Capital delivered 36.5% in 2021 by owning out-of-favor value stocks with strong cash flows and pricing power. The manager sees Q4 as a tipping point with central banks acknowledging inflation and growth stock bubbles deflating. Portfolio includes specialty chemicals, gaming, fertilizers, and Hong Kong real estate, with over 100% estimated upside despite near-term volatility expectations. |
| Sep 30 2021 | 2021 Q3 | AVID, DAN.MI, GSMI.PS, HP3A.DE, IGT, MLCO, OCI.AS, OVS.MI, PRT.MI, RHIM.L, UNIR.MI | Europe, Fertilizers, gaming, retail, small caps, Steel, value |
HP3A.DE OVS.MI |
Palm Harbour Capital's Q3 performance was flat despite strong company fundamentals as markets took profits after a strong run. The fund maintains concentrated exposure to undervalued European small caps including fertilizer producer OCI, gaming company IGT, and Italian retailers. Manager sees significant upside with portfolio trading at 10x P/E and 15% free cash flow yield. |
| Jun 24 2021 | 2021 Q2 | 4966.T, AVID, BFSA.DE, CIR.MI, DHG.L, ESP.MI, GSMI.PS, HAT.L, IGT, IHRT, ILD.PA, JST.DE, MLCO, RHIM.L, UNIE.MI | Europe, gaming, inflation, small caps, technology, value |
4966.T GSMI.PS |
Palm Harbour delivered strong Q2 performance of 12.41% through concentrated value investing in undervalued, cash-generating companies. Manager remains optimistic on portfolio prospects despite broader market concerns, adding Japanese specialty chemicals supplier C. Uyemura and Philippine gin producer Ginebra San Miguel while benefiting from strong performance in Avid Technology and International Game Technology. |
| - | 2021 Q1 | BALY, CEM.MI, ECOR3.SA, STERV.HE | discount, Europe, fundamentals, gaming, Recovery, Steel, value |
CEM.MI STERV.HE |
European value fund gained 18.8% in Q1 2021 as fundamental business improvements drove performance rather than factor rotation. Portfolio includes gaming, steel, electronics retail, and fertilizer companies trading at significant discounts. Manager sees 96% upside to NAV with strong cash generation metrics and expects continued value unlock as economic recovery benefits positioned companies. |
| - | 2020 Q4 | 086280 KS, 200 HK, ARYN.SW, AVID, BAYN.DE, BFSA.DE, GYS.L, IGT, MLCO, MTX.DE, OCI.AS, PRT.MI, RHI.L, TRE.OL | Europe, gaming, Recovery, small caps, Steel, value | AVID | Palm Harbour delivered 23% Q4 returns through concentrated value investing in European small caps and global opportunities. Portfolio trades at 9x P/E with 104% upside, led by industrial recovery plays like RHI Magnesita and Befesa. Manager positioned for post-vaccine economic recovery while maintaining discipline on valuations and quality metrics. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
LeverageManager expresses deep concern about extreme leverage levels in markets, particularly zero-day options, leveraged ETFs, and single-stock leverage products. Highlights Korean leveraged single-stock ETFs causing massive price swings and investor losses exceeding 40% in weeks. Views these products as gambling rather than investing, distorting markets and creating systemic risk. |
ETFs Options Volatility Risk Appetite Korea |
Passive InvestingManager is very concerned about passive flows becoming dominant and driving momentum while causing extreme concentration within indices. References commentary from Simon Evan-Cook and Terry Smith on the risks of passive investing. Views this as a structural market distortion that disadvantages active, fundamentally-driven investors. |
ETFs Momentum Capital Markets | |
ValueManager maintains conviction in patient, long-term, fundamentally-driven value investing focused on cash-producing companies at reasonable valuations. Portfolio trades at 6.6x P/E (net of cash), 17% FCF/EV yield, and 29% return on tangible capital with 106% upside to estimated NAV. Believes smaller, out-of-favor companies outside major indices will fare well mid-term despite current market preference for momentum and leverage. |
Small Caps Quality Valuation | |
AsiaFund underperformed in Asia during June despite unchanged operating fundamentals in Korea, Japan, Indonesia, and Philippines holdings. Weakness reflected style rather than geography as capital gravitated to narrow technology names. Korean market particularly distorted by new leveraged single-stock ETFs. Dollar strength reduced emerging market appetite, particularly affecting countries with higher external financing needs like Indonesia. |
South Korea Indonesia Japan Philippines Emerging Markets | |
PublishingLagardère Publishing is the world's second-largest trade publisher with €3.0 billion in sales and 10-11% EBITA margins. Balanced 50% Europe / 48% English-speaking geographic footprint provides resilience but lower profitability than U.S.-centric peers. Management actively increasing U.S. weight through acquisitions including Workman Publishing and Sterling Publishing. Well-positioned to capture niche growth in fragmented industry with stable margins and strong free cash flow generation. |
Media Europe United States M&A | |
Travel RetailLagardère Travel Retail is third-largest global player with €6.1 billion in sales and 4-6% EBITA margins. Operates in 300 airports and 700 train stations globally. After three years of post-Covid rebound, continued improving EBITA margins from operating leverage and Asia-Pacific restructuring. Economically sensitive and cyclical. Limited synergies with publishing arm suggests potential divestiture candidate, particularly given Qatari fund interest. |
Travel Airports Luxury | |
BuybacksNorma continuing to return proceeds from water business sale through share buybacks totaling €260 million. Second buyback announced at premium to market price up to 30%, likely close to maximum of €20.87 per share. Manager anticipates actively participating in trading of rights if pricing opportunities arise. Youngone received activist letter from Quad Asset Management demanding expansion of shareholder return ratio to 70%. |
Capital Allocation Activism | |
AIManager notes AI craze linked to Korean market darlings experiencing absurdly large price swings. Views this as part of broader gambling mentality distorting markets. Remains cautious and focused on long-term compounding rather than participating in speculative AI-driven volatility. No evidence of positive investment thesis on AI infrastructure or applications. |
Semiconductors Technology Speculation | |
| 2026 Q1 |
GamingDetailed analysis of Cirsa Enterprises, a Spanish omni-channel gaming company with operations across Spain, Latin America and Italy. The company operates 460 casinos, 80,000 slot machines and has a rapidly growing online gaming division. Management expects solid growth driven by online sports betting expansion and casino expansion strategy. |
Casinos Sports Betting Online Gaming Spain Latin America |
OilStrong performance from Vår Energi, the Norwegian oil and gas operator, which delivered transformational year by sanctioning 10 new development projects. The company is well positioned for substantial free cash flow with oil trading well above $100/boe and should remain cash flow neutral at oil prices as low as $40/boe through 2032. |
Norwegian Oil Energy Production Free Cash Flow Oil Prices | |
MusicExposure to Universal Music Group through holdings in Odet and Vivendi. UMG faced pressure during the quarter with 25% sell-off partly explained by AI fears. Despite concerns over future growth amid rising AI-related risks, the manager continues to regard UMG as a high-quality business that has de-rated from an elevated valuation. |
Universal Music AI Impact Content Streaming | |
Battery Supply ChainTop contributor Vitzrocell, the leading South Korean lithium primary batteries manufacturer, gained 95.5% during the quarter. Primary batteries have superior qualities for extreme environments including longer lifetime, higher energy density, and higher temperature ranges, making them ideal for smart meters, military and oil & gas applications. |
Lithium Batteries Smart Meters Military Energy Storage | |
SteelDanieli, the Italian steel plant maker and steel producer, was a significant contributor with 14.9% gain. Although sales declined 16% year-on-year due to project timing, EBITDA increased 17% exceeding expectations. The Plant Making order book increased by 10.9% and remained well diversified. |
Steel Production Plant Making Italy Industrial | |
| 2025 Q4 |
AIArtificial intelligence enthusiasm supported large-cap growth companies and drove technology-led earnings growth. Much of today's technology-led earnings growth is supported by long-term capital investment in AI, energy, and infrastructure reflecting demographic pressures and labor scarcity. |
Artificial Intelligence Technology Investment Growth Infrastructure |
ValuationsEquity valuations remain elevated with the S&P 500 trading near 23x forward earnings, well above its long-term average of roughly 15.6x. Elevated valuations do not imply an imminent market downturn but tend to constrain longer-term returns and may increase market sensitivity to earnings disappointments. |
Valuations Earnings Market Risk Sensitivity | |
EarningsStrong corporate earnings, particularly within technology and communication services, drove market gains. Current valuation levels suggest returns will depend more on earnings durability and cash-flow generation than on further multiple expansion. |
Earnings Corporate Technology Cash Flow Growth | |
DollarA weaker U.S. dollar, down 9.4% in 2025, provided a notable tailwind for foreign assets and helped drive international equity outperformance over U.S. markets for the first time in several years. |
Dollar Currency International Foreign Assets Outperformance | |
RatesThe Federal Reserve cut rates by 25 basis points in December, bringing the policy rate to 3.5%-3.75%. The Fed cut rates three times in 2025 and currently expects one more cut in 2026, while markets are pricing in roughly two additional cuts. |
Federal Reserve Interest Rates Monetary Policy Rate Cuts Policy | |
| 2025 Q3 |
AIInvestor attention remains heavily concentrated on artificial intelligence and a narrow group of related equities, sidelining much of the broader market. The concentration of capital in AI-related stocks is even greater than the technology sector's concentration in 2000. Questions remain about profitability models and sustainability of current AI investment levels. |
Artificial Intelligence Technology Concentration Valuations Investment |
CopperThe fund remains positive on copper's long-term prospects due to supply restrictions from historical under-investment and licensing complexities, combined with booming demand from energy transition, technology, and artificial intelligence applications. Atalaya Mining provides optionality through a promising pipeline of copper projects. |
Energy Transition Supply Restriction Mining Technology Demand | |
SteelThe EU Commission has a plan to protect the EU steel industry from unfair competition, targeting Chinese imports which have hurt the industry. If implemented, the EU steel industry is expected to see much better days, supporting both Danieli's plant making and steel making segments. |
Trade Protection Chinese Competition EU Policy Industrial Tariffs | |
CementArgentine cement market faces challenges from low utilization rates and pricing pressures in early recovery stages. However, competition has historically been rational, and significant upside potential exists once Argentina's real estate market normalizes and government spending picks up again. |
Argentina Real Estate Utilization Recovery Pricing | |
ApparelYoungone operates as a top-tier OEM manufacturer of outdoor and activewear with long-term partnerships with premium brands. The business serves a market niche commanding premium margins through expertise in technical garments, though faces tariff pressures from US trade policy. |
OEM Manufacturing Technical Garments Premium Brands Tariffs Supply Chain | |
| 2025 Q2 |
ValuePortfolio trading at weighted average P/E of 8.9x with more than 97% upside to estimated NAV. Manager emphasizes finding global opportunities at good to great valuations while avoiding overvalued markets. Focus on undervalued companies with strong fundamentals. |
Valuation NAV Discount Undervalued P/E |
GamingSignificant exposure to gaming companies including Lottomatica (Italian multichannel gaming operator), Playtech (gambling technology provider), and International Game Technology (lottery and gaming machine technology). Strong performance from gaming holdings with Lottomatica and Playtech as top contributors. |
Lottomatica Playtech IGT Lottery Sports Betting | |
Small CapsManager explicitly states it is a good time to be a small cap global investor. Portfolio consists of smaller companies across various geographies, taking advantage of opportunities not available in large cap indices. |
Small Cap Global Opportunities Niche Undervalued | |
InflationManager expresses concern about inflation from tariffs and government spending, describing policies as highly inflationary. Invests in companies believed capable of raising prices and outpacing inflation to grow wealth over the long-term. |
Inflation Pricing Power Tariffs Government Debt Currency | |
| 2025 Q1 |
Trade PolicyManager extensively discusses Trump's tariff policies as negotiating tactics, believing they won't be fully implemented. Views tariffs as economically irrational and expects deals to be reached to avoid stagflation. |
Tariffs Negotiations Supply Chains Stagflation Trade War |
ValueFund focuses on smaller, competitively advantaged, cash-generative, lowly valued companies while avoiding speculative market darlings. Portfolio trades at 8.6x P/E with 19% FCF yield. |
Undervalued Cash Generation Intrinsic Value Discount Fundamentals | |
GamingSignificant exposure to gaming companies including Lottomatica (top contributor), International Game Technology, and Sun International. Focus on regulated gaming markets with competitive advantages. |
Casinos Online Gaming Sports Betting Lottery Gaming Revenue | |
Risk AppetiteManager views current market volatility as opportunity rather than risk, emphasizing that volatility is not risk and permanent capital impairment is the true risk measure. |
Volatility Opportunity Capital Impairment Market Panic Speculation | |
| 2024 Q4 |
ValueFund focuses on overlooked securities trading at significant discounts to intrinsic value with above average returns on capital. Portfolio trades at weighted average P/E of 8.5x with 98% upside to estimated NAV. |
Discount Intrinsic Undervalued P/E FCF |
GamingMultiple gaming investments including Lottomatica (Italian gaming operator) and International Game Technologies (lottery and gaming technology). Italian gaming market consolidation creating opportunities. |
Lottery Sports Betting Online Gaming Italy Consolidation | |
MediaHoldings include Nippon Television (Japanese media conglomerate) and exposure to Universal Music Group through Bolloré structure. Focus on content creation and distribution businesses. |
Television Content Music Japan Entertainment | |
InflationManager believes staying invested is prudent to combat inflation and continue compounding wealth. Concerns about potential inflation from tariffs and wage costs in labor-intensive industries. |
Tariffs Wages Compounding Hedging Currency | |
| 2024 Q3 |
ValuePortfolio trades at weighted average P/E of 8.9x with 97% upside to estimated NAV. Manager emphasizes buying quality businesses at cyclical lows, citing examples like Unieuro receiving lowball takeover bid during downturn. Focus on cash-generative businesses trading below historical multiples. |
Valuation Cyclical Cash Generation Discount Multiple |
FertilizersOCI completed major asset sales totaling $11.6 billion gross value including Iowa Fertilizer Company and Global Methanol Business. Company moving toward potential liquidation with only European Nitrogen business remaining. Expected large tax-free dividend distribution to shareholders. |
Nitrogen Methanol Divestiture Liquidation Distribution | |
SteelDanieli faces pressure from Chinese steel exports reaching eight-year high in 2024, impacting European pricing. However, manager sees multi-decade tailwind from plant making division as global steel industry adopts their technology for green steel production. EU expected to impose steeper tariffs for protection. |
Chinese Exports Plant Making Green Steel Tariffs Technology | |
FoodM Dias Branco is Brazil's market leader in cookies & crackers (31.8% share) and pasta (28.9% share). Company recovering from COVID and inflation impacts, implementing operational improvements including SKU simplification and supply chain optimization. Management targeting margin recovery to 15-16% range. |
Brazil Market Leader Operational Efficiency Margin Recovery Distribution | |
| 2024 Q1 |
ValuePortfolio trades at weighted average P/E of 8.9x with 17% FCF/EV yield and 28% return on tangible capital. Manager believes portfolio has more than 101% upside to estimated NAV. Focus on undervalued companies with strong cash generation and balance sheet efficiency opportunities. |
Undervalued Cash Generation Balance Sheet Discount NAV |
BuybacksMultiple portfolio companies implementing share buyback programs including Nippon Television's ¥7 billion buyback and CIR's ongoing buyback program. These corporate actions are viewed as catalysts for unlocking shareholder value. |
Share Buybacks Capital Return Value Unlock Corporate Actions | |
DividendsOcean Wilson increased dividend by 21% from $0.70 to $0.85 per share based on strong operating performance. Nippon Television changed dividend policy to be more favorable for foreign investors as part of balance sheet efficiency improvements. |
Dividend Increase Dividend Policy Foreign Investors Cash Return | |
| 2023 Q4 |
JapanJapan has been one of the cheapest markets in recent years due to poor corporate governance and capital allocation. The new CEO of the Japanese Stock Exchange has openly criticized companies trading below book value and demanded improved capital efficiency. This has created a potential multi-year bull market for value stocks in Japan as companies begin using cash piles for investment and shareholder returns. |
Corporate Governance Capital Allocation Value Buybacks Dividends |
FertilizersFollowing a very strong 2022 when commodity prices skyrocketed, there was over-stocking in the value chain causing a pricing downturn in 2023. With Russian exports unabated, it remains unclear when the downturn will end, though supply/demand balance is expected to improve in coming years. |
Commodity Chemicals Agriculture Supply Chain Pricing | |
Specialty ChemicalsThe Solvay spin-off created Syensqo, a growth-focused specialty chemical company producing high-performance polymers and materials for aerospace, autos and electronics. The company holds top-three positions in 90% of its markets and focuses on battery materials, green hydrogen, and renewable materials. |
Polymers Aerospace Battery Materials Green Hydrogen | |
| 2023 Q3 |
ValueManager emphasizes buying companies at 10% free cash flow yields with strong balance sheets and cash flows. Portfolio trades at weighted average P/E of 7.5x and FCF/EV yield of 18%. Believes current environment creates great setup for value investing performance in coming years. |
Free Cash Flow Valuation Discount Undervalued Margin of Safety |
Small CapsPortfolio consists of small-cap value stocks that appear to be derating despite strong fundamentals. Manager notes small-cap value sector experiencing theme-specific weakness with defensive names lacking bids. Views this as counterintuitive setup for future performance. |
Small Cap Derating Fundamentals Sector | |
RatesManager believes 5% yields on ten-year government bonds seem reasonable and healthy for clearing junk from markets. Portfolio companies can handle 5% rates given their high free cash flow yields and pricing power. Views rate normalization as positive for capital discipline. |
Interest Rates Bond Yields Capital Discipline | |
FertilizersOCI nitrogen fertilizer and methanol producer faced softened ammonia and urea markets in first half 2023 due to lower demand and gas price hedging losses. Manager reduced exposure but prepared to add on decline as prices stabilized. Remains structurally positive on ammonia, urea, DEF and methanol markets. |
Ammonia Urea Methanol Gas Prices | |
| 2023 Q1 |
ValuePortfolio trades at weighted average P/E of 8.5x, FCF/EV yield of 19% and return on tangible capital of 30%. Manager believes this is a great time to be a value investor and sees more than 105% upside to estimated NAV. |
Valuation FCF P/E NAV Discount |
DividendsGinebra San Miguel significantly boosted dividends from 5.5 PHP to forecast 10 PHP for 2023, implying nearly 10% yield. OCI plans €3.5 per share dividend bringing twelve-month distributions to €8.5 per share. Telekom Austria spin-off could enable special dividend. |
Dividend Yield Payout Distribution Special | |
Telecom InfrastructureTelekom Austria operates in oligopolistic markets with pricing power through inflation-linked tariffs. The tower spin-off is expected to unlock value and reduce leverage, potentially allowing for special dividend or M&A activity. |
Towers 5G Fiber Infrastructure Spin-off | |
SteelDanieli's steel segment drove 25% EBITDA growth due to favorable prices, volumes and energy subsidies. EU carbon tax from 2026 on non-green imported steel should benefit their green technologies division and drive demand for their plant-making business. |
Steel EBITDA Carbon Green Technology | |
| 2022 Q2 |
RefinersMotor Oil Hellas is benefiting from an upswing in the refining cycle and can capture abnormal profits due to its high refining complexity and feedstock flexibility. There has been significant underinvestment and closures in the refining industry, aided by Western sanctions on Russian products, leading to a new refining upcycle. |
Refining Energy Margins Complexity Mediterranean |
Natural GasHigh European natural gas prices led to a sell-off in European gas consuming companies' share prices, providing opportunities to buy shares at attractive prices. The manager expects European natural gas prices will likely be lower in the mid-term and alternative fuels will be used in the industry. |
Gas Energy Europe Prices Hedging | |
GlassVerallia is the leading European glass bottle producer with pricing power and relatively strong demand. The glass bottle industry has high barriers to entry based on switching costs and economies of scale. Customers cannot easily switch to alternatives as bottles are part of the brand. |
Packaging Barriers Pricing Oligopoly Recycling | |
FertilizersOCI NV reported record first quarter earnings and announced significant dividend payments. The manager expects nitrogen fertilizer fundamentals to remain strong, with the company benefiting from the current commodity cycle. |
Nitrogen Agriculture Commodities Dividends Cycle | |
Energy TransitionMotor Oil is undergoing significant change as it redeploys strong cashflows in high return projects as they diversify into renewables. The acquisition makes Motor Oil number one in installed wind capacity in Greece, supporting the Group's transition to cleaner forms of energy. |
Renewables Wind Solar Transition Greece | |
InflationMulti-decade high inflation is cited as one of the challenging market conditions. Central banks were far too late in realizing inflation was a growing threat and seemed willing to let rampant speculation run wild. The manager believes a fair portion of inflation is caused by structural underinvestment in commodities and housing. |
Central Banks Monetary Policy Commodities Housing Structural | |
| 2022 Q1 |
FertilizersOCI NV, the Dutch nitrogen fertilizer producer, was the largest contributor adding 206 basis points. Nitrogen fertilizer prices were elevated due to reduced Russian volumes and OCI benefits from low-cost natural gas facilities in the US and North Africa. The manager believes fertilizer prices will remain elevated for an extended period. |
Nitrogen Urea Ammonia Natural Gas Russia |
OilDNO and Vår Energi, both Norwegian oil and gas companies, contributed positively during the quarter. DNO benefited from higher oil prices and remains undervalued compared to peers. Vår Energi is positioned as one of the largest E&P companies on the Norwegian Continental Shelf with production expected to grow significantly by 2026. |
Norwegian Production Exploration Natural Gas | |
InflationThe manager views owning high-quality companies with pricing power, advantaged commodity players and hard assets as the best way to preserve wealth in an inflationary environment. They believe their portfolio is well positioned for this environment with potential for mid-teens compound annual returns. |
Pricing Power Hard Assets Commodities Wealth Preservation | |
Home ImprovementWickes Group was added as a new position, representing the second largest pure-play home improvement retailer in the UK. The company targets smaller tradesmen and retail customers with a differentiated business model utilizing smaller store formats. The aging UK housing stock provides a strong tailwind for the home renovation market. |
UK Retail Renovation Tradesmen DIY | |
RussiaThe manager had no direct exposure to Russian or Ukrainian assets but notes Russia's outsized impact on global commodities including oil, gas, wheat, fertilizers and palladium. The war has driven commodity prices higher and added to inflation pressures. Some portfolio companies like Danieli have limited Russian exposure. |
Ukraine War Commodities Sanctions Europe | |
| 2021 Q4 |
InflationCentral banks now admit inflation exists and is not entirely transitory. The fund believes they are in early innings of righting disastrous effects of negative real interest rates, requiring painful reallocation from speculators to productive businesses. |
Inflation Interest Rates Central Banks Monetary Policy |
ValueThe fund's value stocks have been out of favor but produce strong cash flows. They believe buying high-quality companies with pricing power at significant discounts to intrinsic value will produce strong real returns in this environment. |
Value Cash Flows Pricing Power Intrinsic Value | |
FertilizersNitrogen fertilizer prices have skyrocketed from $226/ton in Q2 2020 to as high as $1000 in Q4 2021. Strong farmer incomes and agricultural commodity prices support fertilizer pricing through upcoming planting seasons. |
Fertilizers Nitrogen Agriculture Commodity Prices | |
HotelsThe hospitality industry has been devastated by COVID-19 and Hong Kong's closed borders. The fund owns hotel assets through Great Eagle Holdings but expects no improvement until 2024, viewing current positions as options for recovery. |
Hotels Hospitality Travel Recovery | |
GamingInternational Game Technology benefited from competitor Scientific Games selling its lottery business at 13x EBITDA. IGT's lottery business is viewed as higher quality and larger, suggesting significant upside potential. |
Gaming Lottery Valuation M&A | |
| 2021 Q3 |
FertilizersOCI NV, the nitrogen fertilizer and methanol producer, was the largest contributor with record EBITDA and free cash flow. Corn price recovery has enriched farmer incomes, allowing increased nitrogen fertilizer purchases. Global marginal producer challenges and natural gas squeeze have lifted fertilizer pricing, with OCI benefiting from 50% gas supply at low fixed costs. |
Nitrogen Methanol Corn Natural Gas EBITDA |
GamingInternational Game Technology reported strong lottery performance with 35% same store sales and progressive recovery in land-based Global Gaming. Digital & Betting activities grew 41%. The company raised guidance and is expected to exceed 2019 levels for key financial metrics. |
Lottery Digital Betting Land-based Recovery | |
ApparelOVS SpA, an Italian fashion retailer, gained 52% during the quarter after completing a rights offer and reporting strong second quarter results. The company is benefiting from market share gains, full pricing, lower working capital, and debt reduction through strategic repositioning in family and value categories. |
Fashion Retail Market Share Family Value | |
SteelDanieli reported full year results well ahead of expectations with EBITDA 12% and net profit 14% ahead of consensus. The steel segment performed well with volumes ramping up. The plant making division is positioned at the start of a long cycle as the global steel industry invests in environmental improvements. |
Steel Plants Environmental Order Backlog Volumes Cycle | |
CasinosMelco International was the top detractor as COVID recovery delays and China's zero tolerance policy kept Macau closed indefinitely. Vague plans for gambling concession renewals caused sector-wide declines, though the manager believes the government doesn't intend to dismantle the industry. |
Macau COVID Concessions Zero Tolerance Recovery | |
| 2021 Q2 |
InflationManager extensively discusses both transitory and structural inflation pressures, noting lumber as transitory while wage increases, supply chain reshoring, and environmental costs as more permanent. Fed policies are viewed as inherently inflationary through asset price inflation. |
Wages Supply Chain Fed Policy Commodities Lumber |
ValuePortfolio focuses on undervalued cash-producing companies bought at discount to intrinsic value. Manager emphasizes finding companies trading below fair value with strong fundamentals as protection against market volatility. |
Undervalued Cash Flow Intrinsic Value Margin of Safety | |
GamingInternational Game Technology was second largest contributor, with lottery segment performing exceptionally well showing 24% same-store sales growth and highest revenue in segment history. Gaming division recovering to 2019 levels. |
Lottery Slot Machines Recovery | |
SemiconductorsC. Uyemura position focuses on specialty PCB plating chemicals for high-end semiconductor applications. 5G rollout and increasing electronics content in cars provide tailwinds for the specialty chemicals niche. |
PCB 5G Electronics Specialty Chemicals | |
AlcoholGinebra San Miguel represents dominant gin producer in Philippines with 92% market share. Company has recovered from previous losses, strengthened balance sheet, and returned to dividend payments with strong pricing power. |
Gin Philippines Market Share Pricing Power | |
| 2021 Q1 |
ValueManager discusses the recent performance of value factor and distinguishes their approach from statistical value indices. They believe their positions appreciated due to fundamental business outlooks being recognized rather than just value factor rotation. |
Value Factor Fundamentals Discount Cheap |
SteelSteel markets have improved greatly with record margins for European producers. The trend towards greener steel using electric arc furnaces will require increased refractories and benefit companies like RHI Magnesita and Danieli. |
Steel EAF Green Refractories Margins | |
GamingGamesys was the largest contributor, announcing stellar earnings and receiving a takeover offer from Bally's Corporation. The manager views the offer as too low given the company's strong cash generation and sector discount. |
Gaming Online Bingo Casino Takeover | |
E-commerceUnieuro benefited from work and school from home trends, embracing omni-channel approach. The company saw strong demand for electronics during lockdowns and continues to gain market share. |
Electronics Retail Omni-channel Lockdown Market share | |
FertilizersOCI NV benefited from ammonia prices doubling due to strong fertilizer application season by cash-flush farmers and pandemic-driven capacity shutdowns reducing supply. |
Ammonia Nitrogen Crop prices Supply Farmers | |
Forest ProductsStora Enso positioned in containerboard driven by e-commerce growth. Pulp prices have almost doubled from 2019 lows with demand exceeding supply growth forecasted. The company owns valuable forest assets providing stability. |
Pulp Containerboard Packaging Forests Pricing | |
| 2020 Q4 |
ValueFund focuses on high-quality companies trading at low valuations relative to cashflows and growth expectations. Portfolio trades at 9x P/E with 14% FCF/EV yield and 104% upside to NAV. Manager emphasizes buying undervalued businesses with strong fundamentals. |
Value Undervalued Cashflows Quality |
SteelRHI Magnesita, the refractory company, was the largest contributor gaining 43.6% during the quarter. Manager expects further re-rating as restocking takes place and demand returns to end-markets. Befesa benefits from steel dust recycling with robust volumes. |
Steel Refractories Recycling | |
FertilizersOCI NV, the nitrogen fertilizer producer, gained 43.3% as fertilizer prices remained strong. Demand aided by large Indian tenders and strong Brazilian market while supply was muted. Healthy crop prices should fuel continued demand into 2021 planting season. |
Fertilizers Nitrogen Agriculture | |
GamingInternational Game Technology gained 45% after divesting Italian gaming business. Melco International provides exposure to Macau casinos through 54% stake in Melco Resorts. Manager confident Macau will retain allure to Chinese gamblers once travel restrictions lift. |
Gaming Casinos Macau | |
TravelMTU Aero Engines gained 50% on vaccine news and hope for return to normal flying patterns. Melco's Macau operations severely impacted by travel ban with GGR down 80% in 2020, but manager expects recovery when Chinese citizens allowed to return. |
Travel Aviation Recovery | |
MediaAvid Technology develops video editing software used in Hollywood movies and TV shows. Company transitioning from hardware sales to SaaS model, boosting recurring revenues from 50% to 71%. Strong free cashflow and improving margins as business model evolves. |
Media Software SaaS |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 24, 2026 | Fund Letters | Palm Harbour Capital | ALHG.PA | Louis Hachette Group | Specialty Business Services | Publishing | Bull | - | Airport Retail, Catalyst-Driven, Corporate Restructuring, discount to NAV, Equity, Europe, france, holding company, Publishing, spinoff, Sum-of-parts, Travel Retail, Value | Login |
| May 5, 2026 | Fund Letters | Palm Harbour Capital | - | Cirsa Enterprises | Other | Casinos & Gaming | Bull | New York Stock Exchange | Blackstone, Casinos, Free Cash Flow, Gaming, IPO, Latin America, M&A, market leader, Omnichannel, Online betting, Regulated Markets, Slot Machines, Spain, Sports betting | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | LOMA | Loma Negra C.I.A.S.A. | Materials | Construction Materials | Bull | New York Stock Exchange | Argentina, cashflow, Cement, infrastructure, recovery | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | ATYM LN | Atalaya Mining Plc | Materials | Copper Mining | Bull | New York Stock Exchange | cashflow, Copper, Electrification, growth, Mining | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | 012030 KS | Youngone Corporation | Consumer Discretionary | Apparel Manufacturing | Bull | New York Stock Exchange | Apparel, cashflow, Margins, Oem, recovery | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | DAN IM | Danieli & C Officine Meccaniche S.p.A. | Industrials | Industrial Machinery | Bull | Borsa Istanbul | backlog, Industrials, infrastructure, machinery, Steel | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | RHIM LN | RHI Magnesita N.V. | Materials | Construction Materials | Neutral | New York Stock Exchange | cashflow, Cyclicality, Overcapacity, Refractories, Steelcycle | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | 6345 JP | Aichi Corporation | Industrials | Construction Machinery & Heavy Trucks | Bear | New York Stock Exchange | buybacks, Capitalallocation, Control, Governance, Suppliers | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | KRI GA | Kri-Kri Milk Industry S.A. | Consumer Staples | Packaged Foods & Meats | Neutral | New York Stock Exchange | Dairy, Exports, growth, Margins, valuation | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | 284740 KS | Cuckoo Homesys Co., Ltd. | Consumer Discretionary | Household Appliances | Bull | New York Stock Exchange | Appliances, dividends, expansion, Margins, Workingcapital | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | VIV FP | Vivendi SE | Communication Services | Media | Bull | Euronext Stock Exchange | arbitration, Catalysts, Holdingcompany, Navdiscount, restructuring | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | BRSL | Brightstar Lottery PLC | Information Technology | Data Processing & Outsourced Services | Bull | New York Stock Exchange | buybacks, cashflow, Contracts, Lottery, rerating | Login |
| Jun 30, 2025 | Fund Letters | Palm Harbour Capital | 192400.KS | Cuckoo Holdings | Consumer Discretionary | Household Appliances | Bull | Korea Exchange (KRX) | Appliance Rental, Dividend Growth, holding company, Home Appliances, market leader, recurring revenue, Rice Cookers, South Korea, Sum-of-parts, Value | Login |
| Mar 31, 2025 | Fund Letters | Palm Harbour Capital | SUI.JO | Sun International Limited | Consumer Discretionary | Casinos & Gaming | Bull | Johannesburg Stock Exchange | activist, Casinos, deleveraging, Gaming, high dividend yield, M&A, Omnichannel, Online betting, South Africa, turnaround, Value | Login |
| Dec 27, 2024 | Fund Letters | Palm Harbour Capital | ODET.PA | Compagnie de l'Odet | Financials | Multi-Sector Holdings | Bull | Euronext Paris | arbitrage, Asset Disposal, complex structure, conglomerate discount, entertainment, france, holding company, media, Sum-of-parts, Value Realization | Login |
| Sep 26, 2024 | Fund Letters | Palm Harbour Capital | MDIA3.SA | M Dias Branco | Consumer Staples | Packaged Foods & Meats | Bull | B3 (Brazil Stock Exchange) | Brazil, consumer staples, Distribution, family-controlled, Margin recovery, market leader, Packaged Foods, turnaround, vertical integration, working capital | Login |
| Dec 28, 2023 | Fund Letters | Palm Harbour Capital | SOLB.BR | Solvay | Materials | Specialty Chemicals | Bull | Euronext Brussels | Belgium, cash generation, market leader, materials, Soda Ash, specialty chemicals, spin-off, turnaround, Value Realization | Login |
| Sep 30, 2023 | Fund Letters | Palm Harbour Capital | OCN.L | Ocean Wilsons Holdings Limited | Financials | Investment Banking & Brokerage | Bull | London Stock Exchange | Brazil, container terminals, discount to NAV, holding company, liquidation value, Maritime Services, strategic review, Sum-of-parts, Tugboat Operator, value unlock | Login |
| Mar 30, 2023 | Fund Letters | Palm Harbour Capital | TKA.VI | Telekom Austria | Communication Services | Integrated Telecommunication Services | Bull | Vienna Stock Exchange | Central Europe, defensive, dividend, Free Cash Flow, infrastructure, oligopoly, telecommunications, Tower Spin-off, Value | Login |
| Jun 30, 2022 | Fund Letters | Palm Harbour Capital | VRLA.PA | Verallia SAS | Packaging & Containers | Glass Products | Bull | Euronext Stock Exchange | barriers to entry, beverage industry, energy hedging, European Manufacturing, Glass packaging, natural gas, oligopoly, Pricing power, Sustainability | Login |
| Jun 30, 2022 | Fund Letters | Palm Harbour Capital | MOH.AT | Motor Oil (Hellas) Corinth Refineries SA | Oil & Gas Refining & Marketing | Oil & Gas Refining & Marketing | Bull | New York Stock Exchange | Complex Refinery, Eastern Mediterranean, energy transition, Feedstock Flexibility, Greek Market, oil refining, renewable energy, Transformation Story, Wind power | Login |
| Mar 31, 2022 | Fund Letters | Palm Harbour Capital | WIX.L | Wickes Group plc | Home Improvement Retail | Home Improvement Retail | Bull | New York Stock Exchange | DIY, Equity, home improvement, Installation Services, retail, spin-off, Tradesmen, UK, Value | Login |
| Mar 31, 2022 | Fund Letters | Palm Harbour Capital | BOAS3.SA | Boa Vista Serviços | Other | Research & Consulting Services | Bull | Brasil Bolsa Balcão | Brazil, Credit Bureau, Data Analytics, Emerging markets, Equity, Fintech, recurring revenue, Regulatory change | Login |
| Sep 30, 2021 | Fund Letters | Palm Harbour Capital | HP3A.DE | Ringmetall SE | Tools & Accessories | Metal & Glass Containers | Bull | - | aftermarket, Cyclical, Drum Clamping Rings, Free Cash Flow, Industrial Packaging, market share, Niche Manufacturing, Pricing power, regulatory compliance | Login |
| Sep 30, 2021 | Fund Letters | Palm Harbour Capital | OVS.MI | OVS SpA | Apparel Manufacturing | Apparel Retail | Bull | Borsa Istanbul | deleveraging, Family Segment, Fashion retail, Free Cash Flow, Italy, market consolidation, market share gains, Omni Channel, turnaround, Value retail | Login |
| Jun 24, 2021 | Fund Letters | Palm Harbour Capital | 4966.T | C. Uyemura & Co Ltd | Specialty Chemicals | Specialty Chemicals | Bull | New York Stock Exchange | 5G, automotive, electronics, Equity, Japan, PCB, semiconductors, specialty chemicals, Value | Login |
| Jun 24, 2021 | Fund Letters | Palm Harbour Capital | GSMI.PS | Ginebra San Miguel Inc | Other | Distillers & Vintners | Bull | New York Stock Exchange | consumer staples, Emerging markets, Equity, Gin, market leader, Philippines, Spirits, turnaround | Login |
| - | Fund Letters | Palm Harbour Capital | IGT | International Game Technology | Consumer Discretionary | Casinos & Gaming | Bull | NYSE | Casinos, deleveraging, Gaming, Italy, Lottery, merger, spin-off, technology, Value | Login |
| - | Fund Letters | Palm Harbour Capital | AVID | Avid Technology | Other | Application Software | Bull | NASDAQ | debt refinancing, EBITDA Margin Expansion, Media Technology, recurring revenue, SaaS, Software, turnaround, Video Editing | Login |
| - | Fund Letters | Palm Harbour Capital | - | Melco International Development Limited | Other | Casinos & Gaming | Bull | New York Stock Exchange | Casinos, China, COVID Recovery, free cash flow yield, Gaming, Holding Company Discount, Macau, Tourism, Travel Recovery | Login |
| - | Fund Letters | Palm Harbour Capital | CEM.MI | Cementir SpA | Building Materials | Construction Materials | Bull | Borsa Istanbul | Cash Flow Yield, construction materials, discount to NAV, family-controlled, Green Investment, high barriers to entry, market leader, multinational, Niche Product, White Cement | Login |
| - | Fund Letters | Palm Harbour Capital | STERV.HE | Stora Enso Oyj | Packaging & Containers | Paper & Forest Products | Bull | NASDAQ | Asset Backing, Containerboard, Cyclical Recovery, e-commerce, forest assets, Forestry, Packaging, Pulp, Scandinavian, supply constraints | Login |
| TICKER | COMMENTARY |
|---|---|
| WOSG.L | The top contributor during the quarter was Watches of Switzerland (+59.2% +113 bps), the British dealer of luxury watches and Rolex's most important authorized dealer. After reporting 18% growth (or +24% on constant currency) in its US business for the full year ending in April, supported by resilient Rolex demand and accelerating trends across other high-end watch brands, as well as continued resilience in the UK, the share price reacted positively and rebound to its pre-crash level from the January 2024 Bucherer announcement and April 2025 tariff sell-off. Equally supportive of share performance were easing concerns around Rolex disintermediation, luxury demand, inflation and tariffs. The position has contributed significantly since the investment was initiated during tariff "Liberation Day". We see a strong likelihood of the company delivering profitable growth, driven by sustained strength in the US segment and ongoing optimisation of the UK operations. |
| PRI.MI | The second largest contributor was Esprinet (+44.1%, +84 bps), the Italian electronics distributor, which we introduced in our fourth quarter 2019 letter. First quarter results exceeded expectations, with 11% revenue growth and 44% adjusted EBITDA growth reflecting market share gains and possible activity ahead of memory-related price increases. More specifically, gross sales from Screens grew 13%, driven by demand for Windows 11 PCs together with increased activity in anticipation of memory shortages. On the other hand, gross sales from Devices were flat year-on-year. The higher-margin Solutions business (digitalisation, cloud computing and cybersecurity) also grew 11%, representing 22% of total sales, signalling a continuation of a margin accretive growth. Overall, Esprinet remains well positioned to benefit from a recovery in IT spending, particularly in AI infrastructure, cybersecurity and technology refresh cycles. |
| VROE.OL | The top detractor was Vår Energi (-18%, -57 bps), the Norwegian oil and gas operator. It is worth bearing in mind that the position was the 2nd largest contributor for the fund in the first quarter with +67.5% or +117bps, so effectively it only gave up some of the gains from the previous quarter. While the company continues to execute operationally, energy equities weakened following a moderation in oil prices from the elevated levels seen earlier in the year. Var Energi delivered as planned, with record high production of 406 thousand barrels of oil equivalent per day (kboepd) in the first quarter and strong cash flows from operations post tax of $1.06 billion. There were a series of further positive strategic announcements in the quarter, including portfolio optimization transactions, further investment in the Balder area, and continued development of the Gjoa hub. With its high-quality portfolio of early-stage projects, the company is targeting to deliver long-term production of over 400 kbepd, and should sustain high shareholder returns over time. |
| MMB.PA | Louis Hachette (ALHG FP) was created by Vivendi to hold its 66.53% stake in Lagardère (MMB FP) and Prisma Media (100% owned). ALHG was spun off from Vivendi in December 2024, alongside Canal+ and Havas. Lagardère business consists of Lagardère Publishing, the second largest publisher globally, and Travel Retail, a top five airport retailer globally, which represent 93% of sales. Lagardère's other activities include press publishing, JDD, radio and the organization of events. Its main shareholder is Bolloré SE, which directly owns 30.4% of the shares (plus 0.6% owned by l'Odet) but also controls 29.3% of Vivendi, which in-turn has a 13.4% stake in Lagardère. We believe Lagardère to be worth between €30 and €35 per share. Ultimately, we believe the current structure should be simplified, which should further aid the valuation. ALHG trades at a 10% discount to Lagardère at market prices, with Lagardère trading at 30-40% discount to our valuation. This 60-70% upside scenario serve as the base case in the absence of any value-accretive decisions. In addition, we see some possibilities for further value creation. Should ALHG decide to divest its Travel Retail business — an asset in which the Qatari fund may have particular interest — or take full ownership of Lagardère or do both, we see upside in excess of 100%. |
| ALHG.PA | Louis Hachette (ALHG FP) was created by Vivendi to hold its 66.53% stake in Lagardère (MMB FP) and Prisma Media (100% owned). ALHG was spun off from Vivendi in December 2024, alongside Canal+ and Havas. ALHG trades at a 10% discount to Lagardère at market prices, with Lagardère trading at 30-40% discount to our valuation. This 60-70% upside scenario serve as the base case in the absence of any value-accretive decisions. In addition, we see some possibilities for further value creation. Should ALHG decide to divest its Travel Retail business — an asset in which the Qatari fund may have particular interest — or take full ownership of Lagardère or do both, we see upside in excess of 100%. |
| LULU | The fifth largest detractor was Youngone (-8.3%, -34 bps), the South-Korean manufacturer that produces apparel, footwear and outdoor gear for global brands like Lululemon, Patagonia and the North Face. We like Youngone as it grows with its customers and doesn't face much direct competition due to its size, capacity, and quality. It has grown its topline double-digit for five quarters in a row, and its gross profit margin was an industry-leading 27.5% in 2025. In the second quarter, Lululemon (LULU US), Youngone's biggest customer, faced several headwinds in North America, marked by soft demand, inventory struggles, and leadership drama. We believe Youngone aims to keep order volumes with Lululemon flat, while growing with other large customers such as Arc'teryx (AMER US) and ON Holdings (ONON US). |
| ONON | We believe Youngone aims to keep order volumes with Lululemon flat, while growing with other large customers such as Arc'teryx (AMER US) and ON Holdings (ONON US). |
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