| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 35.0% | 17.0% | 17.0% | 6.0% | 11.0% | 46.0% |
Seven Corners Capital delivered strong performance in 2025, returning 35% versus 18% for the S&P 500, representing 17% outperformance. Since 2020, the portfolio has appreciated 218% versus 130% for the index, demonstrating consistent alpha generation. The concentrated portfolio maintains six core holdings representing 88% of AUM, reflecting a high-conviction value investing approach. Key positions include Pershing Square Holdings trading at a 24% discount to NAV, Turning Point Brands benefiting from explosive growth in smokeless tobacco products, and Genworth Financial offering discounted exposure to private mortgage insurance. The manager emphasizes patient capital deployment in companies with clear value catalysts, including potential NAV discount closure, litigation recoveries, and commodity price normalization. Recent corporate actions at Rocket Companies through acquisitions of Redfin and Mr Cooper demonstrate the portfolio's focus on transformative business combinations. While acknowledging risks from competition and corporate governance issues, the manager maintains conviction in the portfolio's positioning for continued outperformance through disciplined value investing principles.
Seven Corners Capital employs a concentrated value investing strategy focused on companies trading at significant discounts to intrinsic value, with particular emphasis on NAV discounts, sum-of-the-parts valuations, and secular growth opportunities in niche markets.
The manager appears optimistic about the portfolio's positioning, highlighting multiple value catalysts across holdings including NAV discount closure, litigation recovery, and commodity price recovery potential.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | ACT, CART, GNW, HHH, PSHZF, RKT, SD, TPB | concentrated, discount, energy, Mortgage, NAV, Tobacco, value |
PSHZF TPB GNW CART SD RKT |
The portfolio demonstrates a value investing approach with concentrated positions in companies trading at discounts to intrinsic value. Holdings like PSHZF trade at significant discounts… |
| Jul 18 2025 | 2025 Q2 | CART, GNW, PSH LN, RKT, SD, TPB | Discipline, Intrinsic Value, mispricing, Sentiment, valuation |
PSHZF TPB GNW CART SD RKT |
The letter focuses on valuation discipline amid elevated market multiples and narrow leadership. Management argues that mispriced securities persist due to short-termism and sentiment-driven trading.… |
| Dec 31 2024 | 2024 Q4 | CART, GNW, PSH LN, SD, TPB | - | - | - |
| Nov 1 2024 | 2024 Q3 | GNW, PSHD LN, RKT, SD, TPB | - | - | - |
| Jun 30 2024 | 2024 Q2 | GNW, PSHZF, RKT, SD, TPB | - | - | - |
| Apr 15 2024 | 2024 Q1 | GNW, PSTH/U, RKT, SD | - | - | - |
| Dec 1 2024 | 2023 Q4 | GNW, MACK, PSHZF, SD | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
MortgageFalling interest rates and federal support for housing should drive a continued rebound in mortgage origination volumes, which should benefit mortgage originators and credit bureaus. FICO launched its new Direct Licensing Program for mortgage lending, which provides greater flexibility to monetize its intellectual property. |
Mortgage Origination Housing Credit Scoring Lending Real Estate |
OilOil markets disrupted by closure of Straits of Hormuz affecting 20% of global production. Prices surged from $70 to $119.50 before retreating to $90. Market may be tighter than commonly believed despite IEA projections of surplus. Oil represents cheapest major asset class globally, trading at near-record lows relative to gold. |
Crude Brent WTI Hormuz Supply | |
TobaccoBAT represents a cornered resource through the intersection of brands, regulation and distribution. Regulatory barriers, licensing regimes and advertising restrictions create extraordinary barriers for new entrants, while incumbents retain rights to distribute, price and innovate within defined boundaries, transforming brand equity into a scarce economic asset. |
Regulation Barriers Distribution Brands Licensing | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q2 |
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 |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 18, 2025 | Fund Letters | Scott Klarquist | PSHZF | Pershing Square Holdings Ltd. | Financials | Closed-End Funds | Bull | Euronext Stock Exchange | Activism, Capitalallocation, Closedend, discount, rerating | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | TPB | Turning Point Brands, Inc. | Consumer Staples | Tobacco | Bull | New York Stock Exchange | cashflow, Consumerbrands, Nicotine, Secularshift, tobacco | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | GNW | Genworth Financial, Inc. | Financials | Life & Health Insurance | Bull | New York Stock Exchange | Activism, buybacks, Insurance, restructuring, Sumoftheparts | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | CART | Maplebear Inc. (Instacart) | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | advertising, convenience, ecommerce, marketplace, Networkeffects | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | SD | SandRidge Energy, Inc. | Energy | Oil & Gas Exploration & Production | Bull | New York Stock Exchange | energy, Freecashflow, inflation, Oilgas, Supplydiscipline | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | RKT | Rocket Companies, Inc. | Financials | Mortgage Finance | Bull | New York Stock Exchange | Fintech, Housing, Mortgages, platform, synergies | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | PSHZF | Pershing Square Holdings, Ltd. | Financials | Asset Management | Bull | Euronext Stock Exchange | activist, Alignment, buybacks, capital allocation, NAV discount | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | TPB | Turning Point Brands, Inc. | Consumer Staples | Tobacco | Bull | New York Stock Exchange | cashflow, Governance, growth, Smeless nicotine, tobacco | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | GNW | Genworth Financial, Inc. | Financials | Life & Health Insurance | Bull | New York Stock Exchange | Activism, buybacks, Insurance, Optionality, Sum-of-parts | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | CART | Maplebear Inc. (Instacart) | Consumer Discretionary | Internet Retail | Bull | NASDAQ | ecommerce, grocery, network effects, Platforms, profitability | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | SD | SandRidge Energy, Inc. | Energy | Oil & Gas Exploration & Production | Bull | New York Stock Exchange | capital discipline, energy, Free cashflow, inflation, Oil & Gas | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | RKT | Rocket Companies, Inc. | Financials | Mortgage Finance | Bull | New York Stock Exchange | Housing, Integration, Mortgage, scale, synergies | Login |
| TICKER | COMMENTARY |
|---|---|
| CART | Instacart's stock appreciated about 10% in 2025, underperforming the overall market, but remains up about 50% from SCC's cost basis. In Q3 2025, orders grew 14% year-over-year, GTV increased 10%, and both net income and Adjusted EBITDA expanded. Net income for Q3 2025 came in at $144MM, or $0.51/diluted share. On a forward (fiscal 2026) basis, the company trades at 20X expected earnings of ~$2.25/share, which seems reasonable given its growth prospects and the inherent strength of its business model. |
| GNW | GNW continues to represent a way to obtain (A) (at a discount) indirect ownership in its 80% owned subsidiary, Enact Holdings (ACT), a private mortgage insurer, and (B) a call option on its other businesses (Long Term Care and Life & Annuity). GNW currently owns 115 million shares of ACT; with 399 million shares of GNW outstanding, this means that each share of GNW represents ownership of 0.289 shares of ACT, worth $11.44 as of the end of 2025 (versus the $9 GNW share price). |
| HHH | 2025 marked a pivotal year for HHH as it began its transformation into a leading diversified holding company. Strong results across real estate subsidiary's high-quality portfolio of MPCs. 2025 MPC EBT guidance of $450 million reflects record-high land sale profitability. Completed transaction with Pershing Square in May 2025. |
| PSHZF | PSHZF, led by billionaire hedge fund manager Bill Ackman, finished 2025 up 37% (including dividends), outperforming a 21% increase in its NAV (thus, PSH's discount to NAV decreased to 24%). The long thesis continues to be two-fold: (1) a bet that Bill Ackman will outperform the overall market with his stock picking and uncanny ability to make huge sums via hedging; and (2) more importantly over the intermediate term, the closing of the sizable NAV discount. Simply closing the current discount would result in a ~32% appreciation in the stock, assuming NAV were to remain constant. |
| RKT | Rocket Companies, a fully integrated mortgage provider which we received shares of following the recent closing of its acquisition of Mr. Cooper, underperformed due to evolving market expectations surrounding the path of interest rates, which is key driver of its mortgage originations business. Rocket Companies, following its 2025 acquisition of Mr. Cooper, became a combined company with a market capitalization exceeding $50 billion. As a result, the position moved well beyond our small-cap mandate, and we exited the position. |
| SD | Sandridge is SCC's largest energy holding, whose stock has been relatively stagnant (along with the price of oil & natural gas) over the past 2 years. The long thesis here remains that the secular decline in O&G drilling, combined with the revival of inflation generally, will support carbon-based energy prices going forward (in other words, if you own O&G assets, then ESG is your friend). |
| TPB | TPB is trading at a high single-digit free cash flow yield. The nicotine pouch market has exploded, driving dramatic growth in TPB's business. TPB initially guided 2025 nicotine pouch sales to $60-80 million, then raised that to $80-95 million in March, $100-110 million in August, and $125-130 million in November. TPB could generate over $5.00 per share in earnings this year and $6.00+ next year as the market continues to grow. Looking out a few years, if TPB can garner 8% market share in a $12bn+ nicotine pouch market, it would generate approximately $1bn in sales. We think TPB could be worth $200-300 per share in the next few years. |
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