| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 5% | 0.7% | 0.7% |
PM Capital Enhanced Yield Fund generated a positive 0.7% return during a volatile March 2026 quarter marked by rising bond yields and geopolitical tensions. The Middle East conflict drove oil prices higher, fueling inflation concerns and pushing Australian bond yields materially higher, with 10-year government bonds hitting a 15-year high of 5.18%. The Fund had positioned early in fixed rate bonds, believing rate increase expectations were excessive for the Australian economy. During the quarter, the manager initiated new positions in Telstra and SA Power bonds at attractive 5-6.25% yields, while selling HSBC and Qube after strong performance. The Fund also added to existing positions in Vallourec, MSCI, and Next Era. Looking forward, the manager expects continued near-term volatility but believes current interest rate expectations will prove short-lived given economic pressures. The Fund maintains significant capital available for deployment, positioned for a selective credit environment where stock-picking will be imperative for satisfactory returns.
The Fund is positioned to capitalize on dislocated fixed income markets by investing in high-quality corporate bonds and government securities at attractive yields, while maintaining flexibility to deploy capital into new opportunities as market volatility creates value.
The manager expects continued volatility in risk markets near term due to the ongoing Middle East conflict. They believe current interest rate expectations are excessive and expect these to be short-lived given the impact of elevated fuel costs on businesses and consumers. The Fund maintains significant capital available for deployment into new opportunities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 21 2026 | 2026 Q1 | HSBA.L, MSCI, NEE, QUB.AX, TLS.AX | Corporate Bonds, credit, fixed income, interest rates, Yield | - | Enhanced Yield Fund delivered 0.7% returns despite bond market volatility from Middle East conflict. Manager positioned in fixed rate bonds believing rate hike expectations excessive, initiated new positions in Telstra and SA Power at 5-6.25% yields. Expects continued volatility but views current rate expectations as unsustainable given economic pressures. |
| Feb 10 2026 | 2025 Q4 | 2282.HK, 8570.PA, APO, BAER.L, BHP.AX, CABK.MC, CGF.AX, COL.AX, CRN.L, CS.AX, FCX, FDV.AX, FOXA, HEIA.AS, IMI.L, INGA.AS, LLOY.L, NEM, NSC, NST.AX, QUB.AX, RPRX, SHL.DE, SMR.AX, TECK, TSCO.L, UNP, WDS.AX, WOW.AX | Bonds, credit, fixed income, inflation, rates, Yield | - | Enhanced Yield Fund posted 0.8% quarterly return amid bond market volatility from inflation concerns. Fund increased fixed rate exposure as rate hike expectations appear overdone given economic pressures. Strong performance from defensive supermarket holdings while maintaining conservative credit positioning. Well-positioned with ample capital to capitalize on volatility while targeting returns above cash rates. |
| Oct 20 2025 | 2025 Q3 | 1928.HK, 2282.HK, AIR.PA, AZJ.AX, CABK.MC, CNI.AX, COL.AX, CS.AX, EDV.AX, FCX, FDV.AX, GMEXICOB.MX, HSBA.L, LLOY.L, MIN.AX, NEM, NST.AX, QUB.AX, TECK, WYNN | AI, Banking, commodities, Copper, global, gold, Onshoring, value | - | PM Capital delivered strong Q1 FY2026 performance through contrarian positioning in undervalued commodities and European banking. Gold and copper holdings drove returns as supply disruptions and record prices benefited producers like Newmont and Teck Resources. The fund maintains disciplined value approach, investing in quality businesses at bottom-quartile valuations while positioning differently from broader markets focused on AI and reshoring themes. |
| Jul 23 2025 | 2025 Q2 | 2282.HK, AIB.I, BIRG.I, CABK.MC, CGF.AX, CRN.AX, CSTCF, DGE.L, EDV.AX, FCX, FDV.AX, GQG.AX, HEIA.AS, INGA.AS, LLOY.L, NEM, RI.PA, SAN.PA, SHEL.L, SIE.DE, SPEC.L, TECK, WYNN | Banking, commodities, Copper, European Union, gaming, gold, Onshoring, tariffs | - | PM Capital delivered 8.1% quarterly returns focused on undervalued European banks and commodities. European banks rallied on infrastructure spending expectations while gold and copper holdings benefited from geopolitical tensions. Key contributors included AIB Group, Newmont, and Macau gaming stocks. The strategy targets the 'Great Decoupling' between US and China with patient capital deployment. |
| Mar 31 2025 | 2025 Q1 | 1928.HK, BAC, BHP, CGF.AX, CNI.AX, COR.AX, FCX, GMEXICOB.MX, HEIA.AS, IMD.AX, ING, JPM, MIN.AX, RPRX, SHEL, SIE.DE, SMR.AX, SNY, WDS.AX, WYNN | Coal, Copper, European Banks, Global Equities, infrastructure, tariffs, Valuations | - | PM Capital's Global Fund gained 7.8% in Q1 2025 as European banks surged 28% amid tariff-driven market volatility. The fund benefits from undervalued European assets positioned for infrastructure spending while avoiding overvalued US markets. Key moves included exiting JP Morgan and maintaining copper exposure despite headwinds. The disciplined value approach continues favoring unloved European opportunities over expensive US assets. |
| Dec 31 2024 | 2024 Q4 | AAPL, GOOGL, META | Concentration, Developed Markets, risk management, small caps, value | - | Diranko Capital targets undervalued small-cap equities in developed markets outside the US, seeking companies with strong balance sheet protection and underappreciated business quality. With 10% since-inception returns versus negative small-cap benchmarks, the strategy focuses on asymmetric upside opportunities while avoiding elevated large-cap US valuations amid reversing macroeconomic tailwinds. |
| Sep 30 2024 | 2024 Q3 | AAPL, GOOGL, NVDA, TSLA | AI, emerging markets, gold, liquidity, rates, semiconductors, technology | - | U.S. equities surged 7.8% in Q3 2025 driven by mega-cap technology strength and robust liquidity despite macro headwinds. Emerging markets led global gains with China up 19.1% on semiconductor momentum. Gold rallied 127% while Fed rate cuts supported bond returns. Stretched valuations and policy uncertainties pose risks despite potential year-end momentum. |
| Jun 30 2024 | 2024 Q2 | - | AI, emerging markets, fixed income, global, Markets, rates, Trade Policy | - | Global markets posted strong Q3 gains driven by AI optimism, Fed rate cuts, and easing trade tensions. While near-term risks include government shutdown uncertainty and China tariff threats, the fundamental backdrop remains solid with resilient earnings and supportive monetary policy. MASECO maintains conviction in globally diversified multi-asset portfolios for long-term investors. |
| Mar 31 2024 | 2024 Q1 | DPLM.L, HARV.HE, LOTB.BR, POOL | Compounding, Europe, growth, Quality, Roiic | - | European quality-focused fund delivered +10.08% YTD despite FX drag, maintaining fully invested portfolio targeting sustainable compounders with >20% incremental returns on invested capital. Portfolio companies grew EBITA per share +14.8% through operational excellence rather than financial engineering. Manager emphasizes rigorous capital allocation analysis and free cash flow measurement for long-term double-digit compounding. |
| Dec 31 2023 | 2023 Q4 | - | compounders, growth, long-term, Quality, volatility | - | Quality-focused manager delivered 4.21% in volatile Q1 2025, with portfolio companies showing 15% EBITA growth in 2024. Despite tariff uncertainty, maintaining patient approach by intensifying research on existing high-quality compounders rather than chasing new names. Emphasizes business fundamentals over market noise, planning deeper case study analysis to improve investment selection. |
| Sep 30 2023 | 2023 Q3 | - | asset allocation, diversification, ETFs, Fed policy, Market Commentary, risk management | - | Stonehearth maintains overweight equity exposure in diversified ETF portfolios following strong Q3 performance led by emerging markets and US stocks. Fed rate cuts and positive technical indicators support bullish positioning, while systematic risk management framework monitors 49 indicators for potential shifts. Election year dynamics and low recession probability reinforce constructive outlook. |
| Jun 30 2023 | 2023 Q2 | - | AI, Bonds, healthcare, international, rates, technology | - | Q3 2024 delivered solid returns with U.S. large caps up 4.12% led by technology and healthcare, while international markets gained 6.85%. The Fed's first rate cut signals potential 100 basis point decline by 2025, benefiting corporate and real estate sectors. AI enthusiasm drives continued investment despite monitoring risks from global conflicts and tariffs. |
| Mar 31 2023 | 2023 Q1 | - | AI, consumer, defense, energy, healthcare, technology | - | Markets recovered from April tariff-driven selloffs to hit all-time highs, supported by AI investments, energy boom, medical advances, consumer spending, NATO defense spending, and tight labor markets. Key watchpoints include Fed rate cuts, tariff negotiations, and new federal legislation impacts. Despite geopolitical risks, technological innovation and economic fundamentals drive current performance. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Private CreditThe Fund navigated liquidity concerns in private credit markets during the quarter, with several managers capping redemptions in semi-liquid private credit funds at 5% due to rising redemption requests reaching 10%. Despite market anxiety, the manager views redemption limits as essential to protect investors from forced asset fire sales. |
Liquidity Redemptions Credit |
RatesBond yields rose materially over the quarter as Middle East conflict drove oil prices higher and increased inflation expectations. The Fund positioned in fixed rate bonds early in the quarter, believing 2-3 rate increases were already priced in at unsustainable levels for the Australian economy. |
Bond Yields Inflation RBA | |
OilHigher oil prices from Middle East conflict fueled inflation concerns and drove bond yields higher. The manager expects continued volatility in risk markets near term due to the ongoing conflict, with elevated fuel costs impacting businesses and living costs. |
Energy Geopolitical Inflation | |
| 2025 Q4 |
RatesAustralian bond yields increased significantly during the quarter with three-year bonds rising over 60 basis points and ten-year bonds up almost 50 basis points. Markets shifted from expecting rate cuts to pricing in multiple rate increases for 2026, which the manager believes is overdone given economic conditions. |
Interest Rates Bond Yields Monetary Policy Cash Rate Fixed Income |
InflationThe fund noted signs of re-emergence of higher inflation across major global developed economies including Australia during the December quarter. This contributed to the significant increase in bond yields and shift in rate expectations. |
Inflation Price Pressures Central Banks Economic Policy | |
CreditThe fund maintained a relatively defensive credit market positioning and increased exposure to defensive sectors including supermarket businesses like Coles, Woolworths, and Tesco. The manager views current corporate bond yields as representing good value in absolute terms. |
Corporate Bonds Credit Risk Defensive Sectors Yield | |
| 2025 Q3 |
CopperPortfolio heavily weighted towards copper producers including Teck Resources, Freeport-McMoRan and Grupo Mexico. Copper prices rose 5% in September following major accident at Freeport's Grasberg mine, shifting market expectations from surplus to deficit heading into 2026. Several high-profile supply issues this year including challenges at other major mines. |
Copper Miners Supply Disruption Deficit Industrial Metals |
GoldGold positions benefited from 17% rise in gold price to all-time high of US$3,873. Newmont gained 45% over the period while Northern Star rallied 26% since purchase. Despite gold trading at record levels, investor ownership of gold equities remains low with valuations still attractive and capital returns competitive relative to broader market. |
Gold Miners Record Highs Undervalued Capital Returns | |
ValuePM Capital's approach is to invest in quality businesses when they trade at bottom-quartile valuations relative to their history, and to sell when they reach top-quartile valuations. Portfolio remains positioned very differently from broader market, in areas where they continue to see valuation support. Valuation remains the most important factor over four decades of investing. |
Bottom-quartile Undervalued Quality Contrarian | |
AIArtificial intelligence identified as one of the key themes driving market narratives and investor focus, highlighted by partnerships among OpenAI, Nvidia and Oracle. However, discussions of AI themes rarely address valuation or return on invested capital, which the manager views as cautionary. |
OpenAI Nvidia Oracle Valuation | |
OnshoringUS reshoring and infrastructure investment identified as major themes supporting market strength and investor focus. The surge in US reshoring represents one of the megatrends driving current market narratives, though valuation concerns remain. |
Infrastructure Reshoring Investment Megatrends | |
| 2025 Q2 |
European UnionEuropean banks are significantly undervalued relative to US and Australian peers. Rising infrastructure and defence spending in Europe will stimulate industrial activity and credit demand. A reviving European economy could create jobs and boost anaemic credit growth, aiding European banks. |
Banking Infrastructure Defense Credit Valuation |
CommoditiesUnderinvestment in resource projects will constrain commodity supply, supporting higher metal prices. President Trump is using commodities as bargaining chips for trade concessions. These artificial barriers coincide with decades of global underinvestment and new drivers from the transition to renewables. |
Copper Gold Supply Trade Renewables | |
OnshoringThe COVID-19 pandemic encouraged multinationals to increase manufacturing at home to reduce global supply chain risks. President Trump wants more manufacturing to return to the US and his use of tariffs could accelerate global reshoring as companies increase local production to avoid import tariffs. |
Manufacturing Supply Chain Tariffs Automation Trade Policy | |
GamingGaming positions provided positive contributions with MGM China rising 23% and Wynn Resorts gaining 12%. The sector rebounded in June driven by improved Macau gaming data and tourism recovery despite earlier pressure from US tariff concerns. |
Macau Tourism Recovery China Casinos | |
| 2025 Q1 |
TariffsPresident Trump's tariff policies created uncertainty and market correction, with direct impacts on European holdings and second-order effects on consumer discretionary companies. Tariffs ranging from 10% to almost 50% across all US trading partners were announced in early April. |
Trade Policy Protectionism Uncertainty Market Volatility Import Duties |
European BanksEuropean banks performed exceptionally well with the European Bank Index rising 28% during the quarter. The investment thesis continues with normalization of interest rates, market consolidation, and double-digit shareholder returns as economic and lending growth comes back into focus. |
Banking Interest Rates Consolidation Shareholder Returns Lending Growth | |
CopperExecutive order directing investigation of copper imports led to widening spread between Comex and LME futures, with Comex trading at 15% premium. Tariffs could lead to structurally higher US prices with primary beneficiaries being companies with domestic production linked to Comex pricing. |
Industrial Metals Pricing Spreads Domestic Production National Security Supply Chain | |
Infrastructure SpendingIncreasing US protectionist policies accelerated Europe's decision to significantly increase capital spending across infrastructure and defence. This should lead to higher economic activity and benefit positions in European banks and industrial companies. |
Capital Expenditure Defence Economic Activity Government Spending Industrials | |
CoalCoal miners faced very difficult commodity pricing environment with lowest-cost producers operating on low single-digit margins while higher-cost producers are losing money. Current prices may persist longer than expected given weaker short-term demand despite being at cycle bottom. |
Metallurgical Coal Pricing Pressure Margins Cycle Bottom Demand Weakness | |
| 2024 Q4 |
Small CapsManager focuses exclusively on small-cap equities in developed markets outside the US, researching over 150 companies this year. Strategy targets companies with tangible balance sheet protection where the underlying business is underappreciated, seeking asymmetric upside over a three-year horizon. |
Small Cap Developed Markets Balance Sheet Asymmetric Mispricing |
ValueCore investment philosophy centers on buying assets for less than they are worth. Manager seeks companies with observable downside protection via balance sheets and clear valuation discrepancies that should close over time. |
Undervalued Mispricing Balance Sheet Downside Protection Valuation | |
| 2024 Q3 |
AITechnology giants drove market concentration to record levels with mega-cap strength defining the quarter. Utilities performed well supported by continued investment in artificial intelligence infrastructure. Information Technology led gains in multiple regions including China, Taiwan, and South Korea. |
Technology Infrastructure Semiconductors Data Centers Cloud |
LiquidityStrong underlying demand helped equities defy expectations despite seasonal headwinds. Robust ETF inflows, near-record corporate buybacks, and limited selling pressure supported market resilience. Volume Demand exceeded Volume Supply by one of the widest margins since 2021. |
ETFs Buybacks Capital Markets Risk Appetite Momentum | |
GoldMetals and Mining led all industries with a 127% surge in Gold driving performance. Gold led gains in emerging markets alongside other precious metals. Steel and Copper also posted strong advances during the quarter. |
Gold Miners Copper Steel Commodities Critical Minerals | |
RatesThe Fed resumed rate cuts after a nine-month pause with officials projecting two additional reductions this year. Longer-duration bonds led returns supported by declining yields. The Float-Adjusted U.S. Aggregate Bond Index gained nearly 2% in Q3 and over 6% year-to-date. |
Rates Inflation Volatility Capital Markets Liquidity | |
| 2024 Q2 |
AIAI optimism continued to drive market performance in Q3, with technology-driven enthusiasm supporting equity gains. Growth stocks outperformed value stocks, fueled by investor appetite for AI-related themes. AI optimism was identified as one of the key drivers of global market resilience during the quarter. |
Technology Growth Innovation Semiconductors Software |
Trade PolicyTrade tensions eased during Q3 as negotiations progressed and retaliatory threats diminished, supporting rotation into international equities and emerging markets. However, President Trump threatened fresh tariffs on China over rare earth export controls, creating ongoing uncertainty. A baseline 15% tariff rate was agreed for nearly all EU goods entering the US. |
Tariffs China Negotiations International Policy | |
RatesCentral bank rate decisions played a key role in Q3 market dynamics. The Federal Reserve restarted its rate-cutting cycle with a 25 basis point cut in September amid cooling labor markets and modest inflation. The Bank of England cut rates to 4.0% while the ECB held steady at 2.0%, signaling caution after earlier cuts. |
Fed Monetary Policy Easing Yields Central Banks | |
| 2024 Q1 |
QualityThe manager emphasizes sustainable quality compounding with focus on companies achieving high returns on incremental invested capital (>20/25%). They stress the importance of measuring free cash flow performance, proper capital allocation management, and understanding the ROIIC framework for value creation. |
ROIIC Compounding Capital Allocation Free Cash Flow Value Creation |
| 2023 Q4 |
QualityThe manager focuses on high-quality compounders that delivered 15.0% EBITA per share growth in 2024. They emphasize companies that show resilience and continue thriving through volatile periods, with a focus on business fundamentals over market noise. |
Compounders EBITA Growth Fundamentals Resilience |
| 2023 Q3 |
ETFsThe letter extensively discusses ETF performance across multiple asset classes including emerging markets (VWO), US stocks (SPY), bonds (BND), developed international markets (VEA), and moderate risk diversified portfolios (AOR). Performance data and allocation strategies are central to the investment approach. |
VWO SPY BND VEA AOR |
Risk AppetiteThe firm employs a sophisticated risk management framework including a flagship risk model and hedging protocol that monitors 49 different indicators. They actively adjust equity exposure based on risk assessments, moving between neutral and bullish zones during the quarter. |
Risk Management Hedging Exposure Indicators | |
RatesFederal Reserve rate cuts are highlighted as a key driver, with the September 0.50% cut and expectations for further cuts. The analysis shows falling rates typically benefit markets unless accompanied by recession, with historical data showing 18.5% average returns during non-recessionary rate cutting cycles. |
Fed Rate Cuts Monetary Policy | |
| 2023 Q2 |
AIInvestor enthusiasm remains high around artificial intelligence and cloud infrastructure, with the largest companies investing substantial dollars into AI progress. The team is watching developments in the quickly changing AI and digital landscape. |
Cloud Technology Investment Infrastructure |
RatesThe Federal Reserve reduced short-term rates for the first time this year, with median projections showing a downward trend of about 100 basis points by 2025. Lower borrowing costs could boost corporate and real estate profitability. |
Federal Reserve SOFR Borrowing Corporate Real Estate | |
| 2023 Q1 |
AIMost companies have adopted AI in some form. The largest U.S. companies are investing billions into AI and are already benefiting from automation, productivity, and personal assistance services. |
Technology Automation Productivity |
Defense SpendingWhile the U.S. has pulled back from arms support in Ukraine, European countries have picked up the ticket and defense companies are benefiting from it. |
NATO Ukraine Defense |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| TLS.AX | Late in the quarter, we initiated new positions in the bonds of dominant Australian telecommunications company Telstra |
| HSBA.L | Additionally, early in the quarter we sold down our position in banking giant HSBC after a strong earnings performance saw its capital value increase significantly |
| QUB.AX | We also sold down our investment in major Australian ports and logistics firm Qube post a material uplift in its capital value, after the announcement of its acquisition by Macquarie Bank. While we still like the Qube business, longer term we suspect Macquarie will gear up the Qube balance sheet, potentially putting pressure on its earnings, and thus the investment no longer warranted a meaningful position in the portfolio |
| MSCI | We also added to a significant number of existing investments, including our position in global industrial pipe manufacturer Vallourec, dominant global financial market indices firm MSCI, and leading US renewable energy firm Next Era |
| NEE | We also added to a significant number of existing investments, including our position in global industrial pipe manufacturer Vallourec, dominant global financial market indices firm MSCI, and leading US renewable energy firm Next Era |
| 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 | |||
