| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.9% | 3.7% | 28.9% |
| 2025 |
|---|
| 28.9% |
PM Capital Australian Companies Fund delivered strong performance in December 2025, returning 3.7% for the quarter and 28.9% for the year, significantly outperforming the ASX 200. The portfolio's focus on mispriced opportunities in commodities and financials drove results, with gold and copper positions contributing meaningfully to performance. Gold reached record highs supported by monetary policy and geopolitical uncertainty, while copper surged 17% on supply disruptions and tight market conditions. Key contributors included Newmont (+18%), Capstone Copper (+16%), and Northern Star Resources (+13%). Challenger Limited remained a standout, rising 8% quarterly and 57% annually on regulatory reforms and interest rate normalization. The fund maintained active capital allocation, closing Woodside due to LNG project concerns while re-establishing positions in Apollo Global Management and Siemens Healthineers. Looking ahead, the managers believe their targeted, disciplined approach remains prudent given the scarcity of genuine valuation anomalies in the broader Australian market, with commodities and banks dynamics expected to continue in 2026.
The fund maintains conviction in mispriced opportunities within commodities and financials, particularly gold and copper positions supported by supply constraints and monetary policy backdrop, while Australian banks benefit from regulatory reforms and interest rate normalization.
Heading into 2026, we believe the scarcity of genuine valuation anomalies in the broader market makes our targeted and disciplined approach the most prudent path for continued returns. We expect the dynamics of commodities and banks dominance within Australia to continue in 2026.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 10 2026 | 2025 Q4 | APO, BHP.AX, CGF.AX, CMCL.TO, FDV.AX, HEIA.AS, INGA.AS, NEM, NST.AX, RYAAY, SHL.DE, SMR.AX, WDS.AX | Australia, banks, commodities, Copper, financials, gold, Mining |
NEM US CSC AU SMR AU CGF AU FDV AU WDS AU |
Gold rose 12% over the period, reaching a record high in December. Monetary policy and geopolitical uncertainty continued to provide a positive backdrop for gold. Portfolio holdings Newmont gained 18% and Northern Star Resources gained 13%. Copper surged 17% as supply risks came back into focus following production disruptions and material downgrades to production guidance due to geotechnical issues at several large-scale mines. Recent supply disruptions acutely highlight how tight copper markets have become given the lack of new greenfield capacity coming online and record low inventories. Challenger Limited remained a standout on the back of regulatory reforms and interest rate normalization. The position rose 8% over the quarter and achieved a 57% return for the year ending 31 December 2025. Investors are increasingly pricing in the anticipated benefits of APRA's proposed capital requirement reforms. In steelmaking coal, Stanmore Resources remains resilient despite low commodity prices that have seen peers take measures to preserve cash. Stanmore has maintained consistent mine plans and capital expenditure programs and is therefore well positioned to benefit from any improvement in commodity prices. |
| Oct 20 2025 | 2025 Q3 | - | - | - | |
| Jul 23 2025 | 2025 Q2 | - | - | - | |
| Mar 31 2025 | 2025 Q1 | - | - | - | |
| Dec 31 2024 | 2024 Q4 | - | - | - | |
| Sep 30 2024 | 2024 Q3 | - | - | - | |
| Jun 30 2024 | 2024 Q2 | - | - | - | |
| Mar 31 2024 | 2024 Q1 | - | - | - | |
| Dec 31 2023 | 2023 Q4 | - | - | - | |
| Sep 30 2023 | 2023 Q3 | - | - | - | |
| Jun 30 2023 | 2023 Q2 | - | - | - | |
| Mar 31 2023 | 2023 Q1 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
CopperMarket shifted from deficit to surplus as Chinese demand stalled for first time in 25 years while supply expanded by 3 million tonnes since 2021. Exchange inventories reached 1.2 million tonnes, highest since 2003. Bearish outlook as China transitions from under-consuming to over-consuming copper. |
Base Metals China Inventories Surplus |
FinancialsFinancial intermediaries represent 20.5% of the portfolio, with the manager believing they should benefit from interest rates determined primarily by free market forces. Key holdings include Citigroup, Bank of Ireland, BNP Paribas, NN Group, Capital One, and Charles Schwab, which were significant contributors to Q4 performance. |
Banks Capital Markets Interest Rates Financial Services Credit Cards | |
GoldGold returned +65% in dollars in 2025, driven by broadening demand from central banks, professional and retail investors. Central banks now hold 24% of reserves in gold versus 23% in US Treasuries for the first time. Maintained 12% portfolio allocation throughout the year. |
Central Banks Reserves Diversification Demand | |
Metallurgical CoalSignificant underinvestment in metallurgical coal which is a needed input for worldwide steel consumption, particularly in Asia and India where high-grade met coal resources are limited. Minimal worldwide met coal resource development over the last 10 years could lead to tight supply when steel production improves. |
Coal Steel Mining Commodities |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2026 | Fund Letters | Paul Moore | NEM US | Newmont Corporation | Materials | Gold | Bull | New York Stock Exchange | Commodities, Geopolitics, Gold, inflation, Interestrates | Login |
| Feb 10, 2026 | Fund Letters | Paul Moore | CSC AU | Capstone Copper Corp. | Materials | Copper | Bull | New York Stock Exchange | Commodities, Copper, Inventories, Mining, Supply Shortage | Login |
| Feb 10, 2026 | Fund Letters | Paul Moore | SMR AU | Stanmore Resources Limited | Materials | Coal & Consumable Fuels | Bull | New York Stock Exchange | capital discipline, coal, Commodities, Cyclicality, resilience | Login |
| Feb 10, 2026 | Fund Letters | Paul Moore | CGF AU | Challenger Limited | Financials | Life & Health Insurance | Bull | New York Stock Exchange | Annuities, Demographics, Interestrates, Regulation, rerating | Login |
| Feb 10, 2026 | Fund Letters | Paul Moore | FDV AU | Frontier Digital Ventures Limited | Communication Services | Interactive Media & Services | Bear | New York Stock Exchange | cashflow, Classifieds, emergingmarkets, restructuring | Login |
| Feb 10, 2026 | Fund Letters | Paul Moore | WDS AU | Woodside Energy Group Ltd | Energy | Oil & Gas Exploration & Production | Bear | New York Stock Exchange | arbitrage, commodity risk, energy, Gas, LNG | Login |
| TICKER | COMMENTARY |
|---|---|
| APO | The decision to add to Apollo was driven by a pronounced valuation disconnect as the stock experienced a peak-to-trough drawdown of approximately 30% from its 2025 highs. Apollo retains a core position in the portfolio with our conviction in its key credit franchise. |
| BHP.AX | BHP delivered +7% performance as copper and gold positions continued to make a meaningful contribution to performance, supported by higher commodity prices. |
| CGF.AX | Our conviction in Challenger Limited continues to yield strong results, with the position rising 8% over the quarter and achieving a 57% return for the year ending 31 December 2025. Investors are increasingly pricing in the anticipated benefits of APRA's proposed capital requirement reforms. |
| CMCL.TO | Capstone Copper +16% |
| FDV.AX | Frontier Digital Ventures was the main detractor to performance over the period retracing the strong performance witnessed in the preceding quarter. |
| HEIA.AS | Heineken (+8%) |
| INGA.AS | At the opposite end of the risk spectrum sits European bank ING Groep, which has also been an important contributor over recent years. The Fund first acquired shares in this conservatively capitalised bank in late 2023 at around €12 per share, a discount to tangible book value. The stock has doubled over the subsequent two years. |
| NEM | Newmont delivered +18% performance over the quarter, contributing meaningfully to portfolio returns as gold gained another 12%, taking its 2025 gains to an extraordinary 64%. |
| NST.AX | Northern Star Resources delivered +13% performance contributing meaningfully to portfolio returns as gold positions continued to make strong contributions supported by higher commodity prices. |
| RYAAY | This is the largest airline in Europe. I followed the company for about 18 years. I owned its shares professionally for much of that time. We bought Ryanair's American Depository Shares when Greenfield started managing investments in September 2021 at around US$45 (adjusted for a subsequent stock split). At the time, the airline was still losing money from the COVID-19 pandemic, but it previously had consistently strong profitability. The price at the time represented only 16 times what the airline had earned back in 2018. I felt their earnings would eventually be materially higher. And, unlike many airlines, Ryanair still had an excellent balance sheet. The American Depository Shares now trade at around US$73 representing roughly 14 times earnings. I feel the airline will continue using its low-cost competitive advantage to grow by stealing market share from weaker airlines. |
| SHL.DE | During the quarter, we also initiated a position in Siemens Healthineers, a global leader in medical imaging and advanced therapies. The company is well placed to benefit from structural megatrends, such as aging demographics, greater emphasis on personalised care and the rising prevalence of chronic diseases. |
| SMR.AX | In steelmaking coal, Stanmore Resources remains resilient despite low commodity prices that have seen peers take measures to preserve cash. Stanmore has maintained consistent mine plans and capital expenditure programs and is therefore well positioned to benefit from any improvement in commodity prices. |
| WDS.AX | The fund closed its position in Woodside during the quarter amid growing concerns around the company's commodity exposure, particularly the multi-billion-dollar Louisianna LNG project. |
| 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 | |||
