| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 6.7% | 0.7% | 4.5% |
| 2025 | 2024 |
|---|---|
| 4.5% | 4.2% |
Palm Valley Capital Fund returned 0.66% in Q4 2025 versus 1.70% for the SmallCap 600, ending the year up 4.46% with 76.3% cash. The managers critique persistent inflation and Fed policies that create inequality while maintaining a defensive stance. Despite market euphoria, they found opportunities in beaten-down small caps, with 10% of SmallCap 600 trading near pandemic lows. New positions included Domino's Pizza Group at 9x earnings, Utz Brands at 12x free cash flow, and Ingredion at 10x earnings. They sold silver positions after record price gains and reduced precious metals exposure. Key holdings Kelly Services and Flowers Foods faced headwinds but trade at attractive valuations. The fund's equity-only performance was 8.81% for 2025, benefiting from precious metals exposure. With many holdings trading meaningfully below intrinsic value and the average discount to fair value estimates at five-year highs, the managers position for long-term value realization while maintaining significant cash reserves for future opportunities.
Palm Valley Capital practices disciplined value investing in small caps, maintaining high cash levels while selectively buying quality businesses trading at significant discounts during market dislocations, positioning for long-term value realization despite near-term underperformance.
The managers believe they are close to a point where the populace will reject an economic model that rewards asset owners at the expense of everyone else. They maintain a defensive posture with high cash levels while selectively investing in undervalued small caps trading at significant discounts to intrinsic value.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 6 2026 | 2025 Q4 | - | capital preservation, Cash, optionality, Patience, valuation |
DOM LN UTZ INGR FLO HTLD |
The letter highlights a cautious stance driven by elevated valuations, narrow market leadership, and limited margins of safety across equities. Cash is positioned as a… |
| Oct 7 2025 | 2025 Q3 | AVA, DOX, EA, FLO, LKQ, PSLV, RHI, SEB, TFX | Artificial Intelligence, Discipline, risk management, small caps, valuation | - | Palm Valley emphasizes capital preservation through elevated cash balances amid stretched equity valuations. The fund prioritizes optionality and downside protection over forced participation. Cash remains… |
| Jul 8 2025 | 2025 Q2 | CHRD, CRI, HCSG, KELYA, MAN, PSLV, PZZA, RES | capital preservation, Cash, optionality, risk management, volatility |
HCSG CHRD RES PZZA PSLV |
The letter frames volatility as a structural feature of modern markets driven by leverage, algorithmic trading, and rapid sentiment shifts. Management positions the portfolio defensively… |
| Apr 4 2025 | 2025 Q1 | FLO, FORR, HTLD, KELYA, MNRO, PHYS, PSLV, REYN, RGP, TBI | - | - | - |
| Jan 5 2025 | 2024 Q4 | CRD/A, CRI, FPI, HTLD, KELYA, LAS CN, PSLV, SEB, TBI | - | - | - |
| Oct 1 2024 | 2024 Q3 | DOX, EQC, HELE, LAS/A CN, NATH, RGP, TBI, WHGLY, WLY | - | - | - |
| Jul 9 2024 | 2024 Q2 | KELYA, MAN, NVDA, PSLV, RGP | - | - | - |
| Apr 19 2024 | 2024 Q1 | AAP, CRD/A, GENC, MLR, NWN, SMCI, SSRM, TBI | - | - | - |
| Jan 7 2024 | 2023 Q4 | LAS/A CN|MLR|MNRO|NGS|WHGLY|WLY | - | - | - |
| May 10 2023 | 2023 Q3 | AAP, AVA, CRD/A, EQC, FPI, LAS/A CN, MLR, SSRM, TBI | - | - | - |
| Jun 7 2023 | 2023 Q2 | 0OO GR, 288 HK, AAP, CRD/A, CRD/B, META, PSLV, TBI | - | - | - |
| Mar 31 2023 | 2023 Q1 | CRD/A, GENC, MLR, NGS, OR, WHGLY | - | - | - |
| Jan 1 2023 | 2022 Q4 | - | - | - | - |
| Nov 10 2022 | 2022 Q3 | KELYA, MAN, ODC, SNN, SSRM | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
CashFund maintains 30% cash position as defensive measure against expensive market valuations. Cash provides optionality for opportunistic deployment when attractive opportunities arise. Management views current cash levels as necessary given stretched valuations across broader markets. |
Cash Management Liquidity Defensive Positioning Opportunity Cost Capital Allocation |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
Discipline |
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Risk |
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Small CapsConcentrated portfolio of small-cap companies with limited sell-side coverage and institutional ownership. Invests where most institutional managers cannot or will not participate, allowing for asymmetric return potential. 44% of Russell 2000 stocks have zero Wall Street coverage, creating mispriced opportunities. |
Russell 2000 Limited Coverage Institutional Asymmetric Mispriced | |
ValuationAI-related companies continue to command premium valuations while other sectors remain reasonably priced. This valuation divide continues to guide investment activity, with the fund remaining wary of companies trading at exceedingly high valuations that imply exceptional multi-year earnings growth. |
Premium Divide Discipline Stretched Reasonable | |
| 2025 Q2 |
VolatilityManager emphasizes volatility as a structural feature of markets, noting that rare events occur far more frequently than expected. April's volatility event validated their convexity approach, with systematic monetization during stress periods. December saw compressed volatility with VIX hitting year lows, creating buying opportunities despite short-term costs. |
VIX Implied Volatility Realized Volatility Convexity Options |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 6, 2026 | Fund Letters | Jayme Wiggins | DOM LN | Domino’s Pizza Group plc | Consumer Discretionary | Restaurants | Bull | New York Stock Exchange | dividends, Franchising, marketshare, Restaurants, valuation | Login |
| Jan 6, 2026 | Fund Letters | Jayme Wiggins | UTZ | Utz Brands, Inc. | Consumer Staples | Packaged Foods | Bull | New York Stock Exchange | brands, Consumerstaples, deleveraging, Freecashflow, Snacks | Login |
| Jan 6, 2026 | Fund Letters | Jayme Wiggins | INGR | Ingredion Incorporated | Consumer Staples | Food Ingredients | Bull | New York Stock Exchange | cashflow, dividends, Ingredients, Specialtyproducts, valuation | Login |
| Jan 6, 2026 | Fund Letters | Jayme Wiggins | FLO | Flowers Foods, Inc. | Consumer Staples | Packaged Foods & Meats | Bull | New York Stock Exchange | cashflow, deleveraging, dividends, innovation, Margins, Staples | Login |
| Jan 6, 2026 | Fund Letters | Jayme Wiggins | HTLD | Heartland Express, Inc. | Industrials | Trucking | Bull | NASDAQ | Capacity, CapEx, deleveraging, Freight, Rates, Regulations, Trucking | Login |
| Jul 8, 2025 | Fund Letters | Jayme Wiggins | HCSG | Healthcare Services Group, Inc. | Health Care | Health Care Services | Bull | NASDAQ | cashflow, healthcare, Outsourcing, services, Smallcap | Login |
| Jul 8, 2025 | Fund Letters | Jayme Wiggins | CHRD | Chord Energy Corporation | Energy | Oil & Gas Exploration & Production | Bull | NASDAQ | buybacks, cashflow, dividends, energy, Shale | Login |
| Jul 8, 2025 | Fund Letters | Jayme Wiggins | RES | RPC, Inc. | Energy | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | balance sheet, Cyclicals, energy, Oilfieldservices, Smallcap | Login |
| Jul 8, 2025 | Fund Letters | Jayme Wiggins | PZZA | Papa John's International, Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | Consumers, Franchising, growth, Restaurants, turnaround | Login |
| Jul 8, 2025 | Fund Letters | Jayme Wiggins | PSLV | Sprott Physical Silver Trust | Materials | Precious Metals & Minerals | Bull | New York Stock Exchange | Commodities, Hedging, inflation, Preciousmetals, Silver | Login |
| TICKER | COMMENTARY |
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