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| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
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Diego Milano's Quercus Fund delivered exceptional performance with 137% cumulative returns over 5+ years, significantly outperforming global indices. The concentrated portfolio focuses on buying assets at extreme discounts to intrinsic value, with selling decisions driven purely by opportunity cost considerations. Milano recently initiated six new positions as core holdings have appreciated, maintaining the strategy of targeting 3x+ upside potential. A notable new investment is Braskem Idesa corporate bonds, a defaulted Mexican petrochemical company trading at 60% of par. Milano views this as a liquidity rather than solvency issue, with the company now operating its ethane-based plant at full capacity through a new import terminal financed by Carlos Slim. The manager explicitly avoids gold and precious metals due to inability to assess intrinsic value, preferring productive assets as inflation protection. The petrochemical sector faces its worst downturn ever, but early signs suggest potential cycle inflection. Milano maintains his disciplined approach of extreme selectivity and concentration.
Concentrated value investing focused on buying assets at extremely low prices compared to intrinsic value, with recent emphasis on distressed opportunities as core positions have appreciated.
Manager expects continued focus on finding opportunities with extreme price-to-value discounts as core positions have appreciated. Acknowledges the petrochemical cycle inflection point remains unclear but sees significant asymmetric opportunities in distressed situations.
As of Mar 2, 2026
Diego B. Milano is Quercus Fund's founder and investment manager since inception in 2021, bringing over 15 years of financial markets experience including a decade as portfolio manager and research analyst in São Paulo, Brazil. An aeronautics engineering graduate from ITA (2003), Milano describes himself as a diehard follower of value investing principles in a never-ending global quest to find extremely undervalued opportunities. He demonstrates maximum alignment with investors by investing essentially all his personal wealth in the fund and charging no management fees, only performance fees above a 6% hurdle rate. Milano emphasizes that fundholders are essentially friends and family, reflecting his commitment to personal relationships and accountability in investment management.
The objective is simple, but not easy: to buy securities at extremely low prices in relation to their intrinsic worth. The fund employs a distinctive deep-value, long-term, and unconstrained global investment approach inspired by Warren Buffett's partnerships in the 1950s and 1960s, adapted to today's global markets. The portfolio is highly concentrated (5-12 positions) with no similarity to any index, focusing on assets trading at significant discounts to intrinsic value in unconventional and overlooked markets. Benchmarks are measurement devices rather than tracking objectives, and volatility as a measure of risk is ignored in favor of focusing on permanent capital loss prevention.
Lead Portfolio Manager
High Conviction Bullish
Market Conviction
High-conviction positioning: Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Growth Outlook
Market outlook remains low conviction: Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Risk Appetite
Risk appetite posture is above average conviction: Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Capital Deployment
Manager actively deployed capital into high-conviction opportunities. Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Forward Guidance
Forward guidance signal: Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Language Signal
Tone analysis indicates low conviction language: Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Opportunity Density
Opportunity density index indicates moderate conviction actionable entry points. Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Time Horizon
Investment time horizon reflects a moderate conviction orientation. Concentrated value fund targeting 3x+ upside opportunities delivered 137% cumulative returns over 5+ years. Manager recently initiated distressed petrochemical bonds position in Br...
Top Conviction Themes
Key Catalysts
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