| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 16.4% | -2% | -2% |
Silver Beech returned -2.0% in Q1 2026 versus the S&P 500's -4.3%, benefiting from energy holdings during the Strait of Hormuz disruption and avoiding AI-impacted software companies. The fund initiated a large position in Apollo Global Management, viewing it as a misunderstood leader in the convergence of private capital and life insurance. Apollo's integrated model with Athene creates structural advantages through permanent capital, proprietary origination platforms, and spread capture that asset-light competitors cannot replicate. The market has penalized Apollo for complexity while underappreciating its durability, with the stock trading at 25x after-tax FRE despite mid-teens growth prospects. Silver Beech sees 40%+ upside to $160 per share in the base case. Key risks include regulatory capital reform, credit cycle downturns, and peer convergence. The current opportunity set is among the most attractive the manager has seen, driven by market dislocations from AI disruption themes and energy supply shocks that have untethered many equity prices from fundamentals.
Silver Beech targets undervalued, high-quality companies whose success does not depend on favorable macroeconomic forecasting, with Apollo Global Management representing a prime example of a structurally advantaged, integrated alternative asset manager trading at a discount due to market misunderstanding of its complexity and permanent capital advantages.
Against our unchanged underwriting standard of targeting undervalued companies whose success does not depend on favorable macro shifts, the current opportunity set is among the more attractive we have seen. The manager expects Apollo's valuation to expand both absolutely and relative to peers as the durability and quality of its integrated model is validated through the cycle.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 18 2026 | 2026 Q1 | APO, ET, GFR | Alternative Assets, Apollo, energy, insurance, private credit, value | APO | Silver Beech outperformed in Q1 by avoiding AI-disrupted software and benefiting from energy supply shocks. The fund's large new Apollo position exemplifies its strategy of buying misunderstood, structurally advantaged companies. Apollo's integrated private credit and life insurance model creates permanent capital advantages that justify significant valuation expansion from current levels. |
| Dec 4 2025 | 2025 Q3 | DNTL.TO, ET, FFH, FR, GFR.TO, GSY.TO, MHC, PLYM, PRKS, RTO, SWX, WSC | Canada, Consolidation, Cyclical, Industrial, small caps, value | - | Silver Beech trails benchmarks in Q3 2025 as markets reward speculation over fundamentals. The fund maintains discipline, with their portfolio trading at a 50% discount to the S&P 500 despite similar growth characteristics. Key positions include WillScot at attractive cyclical trough valuations and a successful Dentalcorp exit generating 44% IRR, validating their patient value approach. |
| Sep 2 2025 | 2025 Q2 | CTRI, DNTL.TO, ET, FFH.TO, FR, GFR.TO, GSY.TO, MHC, PRKS, RTO, SWX, WSC | insurance, Regulated, small caps, undervalued, Utilities, value |
SWX FFH CN SWX FFH.TO |
Silver Beech delivered flat performance year-to-date but maintains strong long-term outperformance through disciplined value investing. The portfolio trades at half the S&P 500's valuation with similar growth prospects. Key positions Southwest Gas and Fairfax Financial offer compelling catalysts despite market euphoria around AI driving elevated valuations across broader markets. |
| Jun 16 2025 | 2025 Q1 | BN, BUR, DNTL.TO, ET, FFH.TO, FR, GFR.TO, GSY.TO, MHC, PRKS, RTO, WSC | Logistics, REITs, small caps, tariffs, value, volatility | FR | Silver Beech outperformed major indices in Q1 2025 despite market volatility from tariff uncertainty. The fund exited Brookfield Corporation profitably and invested in First Industrial Realty Trust to capitalize on logistics real estate supply constraints. With a concentrated portfolio of 10 holdings trading at attractive valuations, management maintains a patient, downside-oriented approach amid elevated market risk. |
| Mar 26 2025 | 2024 Q4 | BN, BUR.L, DNTL.TO, ET, FFH.TO, GFR.TO, MHC, PRKS, RTO, WSC | Consolidation, energy, financials, real estate, Turnarounds, value | RTO | Silver Beech delivered 23.9% returns in 2024 despite elevated market risks and speculation. Their concentrated value approach targets out-of-favor sectors like financials and real estate, with portfolio trading at 1.9x book value versus S&P 500's 5.1x. The Rentokil investment exemplifies their strategy of buying quality consolidation plays at discounted valuations during temporary operational challenges. |
| Nov 27 2024 | 2024 Q3 | BN, BUR, DNTL.TO, ET, FFH, FNF, MHC, RTO, SNX, WSC | Asset Management, Concentration, Construction, private markets, small cap, Specialty Rental, value |
BN WSC |
Silver Beech matched the S&P 500 with 22.3% returns through Q3 while maintaining a concentrated value strategy. The 10-stock portfolio trades at 2.1x book value versus 5.1x for the index. Core holdings Brookfield and WillScot face different trajectories but both offer significant upside to intrinsic value estimates despite market headwinds. |
| Aug 13 2024 | 2024 Q2 | BN, BTI, BUR, DNTL.TO, ET, FFH.TO, FNF, RCM, WSC | Concentration, Legal Finance, multiples, Outperformance, technology, value | BUR | Silver Beech delivered 11.6% returns in Q2 through concentrated value investing outside technology. Their 9-stock portfolio trades at 14.7x P/E versus 22x for the S&P 500 while maintaining similar growth. Featured investment Burford Capital offers legal finance exposure with 27% historical IRRs and asymmetric upside from a $6 billion Argentina case. |
| May 30 2024 | 2024 Q1 | BN, BTI, BUR, C, CROX, DNTL.TO, ET, FFH, FNF, GOOGL, SD, WSC | cash flow, Consolidation, infrastructure, Pricing Power, small cap, undervalued, value |
WSC DNTL.TO |
Silver Beech delivered 8.4% Q1 returns with concentrated value strategy. New position WillScot Mobile Mini offers 50%+ upside at current prices. Successfully exited Crocs and Citigroup with strong IRRs. Portfolio trades at discount to S&P 500 despite similar fundamentals. Management maintains discipline amid market excesses, targeting long-term value creation through patient capital deployment. |
| Dec 2 2024 | 2023 Q4 | BN, ET | - | - | |
| Oct 30 2023 | 2023 Q3 | - | - | - | |
| Jul 14 2023 | 2023 Q2 | ABG, ABR, FIZN, GOOG, PLYA | - | - | |
| Apr 19 2023 | 2023 Q1 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Private CreditApollo Global Management represents the convergence of private capital and life insurance, with Apollo being the most structurally advantaged operator due to its integrated asset manager and captive life insurer model. The firm originated over $300 billion of credit in 2025, with roughly 80% of its $1 trillion AUM in credit, mostly investment grade. |
Alternative Asset Management Life Insurance Credit Origination Athene Permanent Capital |
AIAI-driven disruption created sharp market volatility during Q1, with capital rotating away from industries deemed impaired by artificial intelligence. Software drew down 24% as AI-driven obsolescence concerns mounted. Silver Beech holds no positions in businesses materially exposed to AI displacement. |
Artificial Intelligence Business Model Disruption Software Market Volatility | |
OilEnergy supply disruption from the Strait of Hormuz closure drove oil & gas exploration companies up 35% in Q1. Global crude prices exceed January levels by more than 75% with inventories drawing down at record rates. A protracted disruption could re-accelerate inflation and raise recession probability. |
Energy Supply Strait of Hormuz Crude Oil Geopolitical Risk | |
Alternative Asset ManagersApollo's integrated model with Athene creates structural advantages that asset-light competitors cannot replicate. The firm controls permanent capital through life insurance liabilities, justifies investment in proprietary origination platforms, and captures spread economics rather than just fees. |
Asset Management Integration Permanent Capital Origination Platforms | |
| 2025 Q3 |
ValueSilver Beech's portfolio trades at over a 50% discount to the S&P 500's price-earnings ratio while possessing similar projected earnings-per-share growth and returns-on-capital. The fund focuses on finding disconnects between price and value, as demonstrated with WillScot trading at a 13% free cash flow yield despite being a dominant industrial services franchise. |
Valuation Discount Undervalued Free Cash Flow Price-to-Earnings |
Industrial ServicesWillScot represents the most asymmetric opportunity in the portfolio as a compounding industrial services franchise with a dominant market position. The company operates as a high-quality tollbooth on North American construction and infrastructure, with multiple countercyclical levers to optimize free cash flow during downturns. |
Modular Buildings Construction Infrastructure Utilization Cyclical | |
ConsolidationBoth WillScot and Dentalcorp benefit from industry consolidation dynamics. WillScot is positioned to capture market share as smaller private competitors liquidate fleets, while Dentalcorp serves as the partner of choice for Canadian dental practices with a distinct scale advantage as the largest consolidator. |
Market Share Scale Acquisition Fragmented Markets Roll-up | |
| 2025 Q2 |
Regulated UtilitiesSouthwest Gas Holdings represents a pure-play regulated utility opportunity with multiple catalysts including deconsolidation from Centuri, deleveraging, understated rate base growth of 8-12% CAGR, and improving regulatory frameworks in Arizona and Nevada that will address regulatory lag. |
Natural Gas Rate Base Regulatory Deconsolidation Utilities |
InsuranceFairfax Financial Holdings exemplifies a disciplined float-based business model that has delivered exceptional results with 16% average ROE over four decades. The hard P&C insurance market cycle since 2018 and rising interest rates have created powerful tailwinds for float-driven models. |
P&C Insurance Float Hard Market Reinsurance ROE | |
ValueThe fund's portfolio trades at over 50% discount to S&P 500 P/E ratios while maintaining similar projected earnings growth and returns on capital. The strategy focuses on opportunistically investing in durable companies at attractive multiples of normalized cash flow. |
Valuation Discount Cash Flow Multiples Undervalued | |
| 2025 Q1 |
LogisticsThe logistics real estate sector has been a top-performing asset class for over a decade, driven by structural shifts including e-commerce growth and U.S. manufacturing reindustrialization. Current supply constraints from high construction costs and elevated interest rates have created a compelling investment opportunity, with new supply projected 60% below peak 2022 deliveries. |
Industrial REITs Supply Chain E-commerce Construction |
Commercial Real EstateInvestment in First Industrial Realty Trust represents exposure to supply-constrained coastal logistics markets. The company owns 424 properties totaling 70 million square feet, with properties featuring high clear heights and concentrated in attractive markets like Southern California and South Florida. |
REITs Industrial Coastal Markets Supply Constraints Development | |
OnshoringTariff-driven reindustrialization or reshoring of American manufacturing will generate demand for logistics space through a 3-5x multiplier effect, as new manufacturing facilities require upstream and downstream suppliers and distributors. This acceleration of American reindustrialization benefits industrial real estate demand. |
Manufacturing Tariffs Industrial Supply Chain Reshoring | |
| 2024 Q4 |
ValueSilver Beech focuses on durable companies priced at attractive multiples of free cash flow, contrasting with the S&P 500's near-record multiples. The fund targets out-of-favor areas including real estate, finance companies, banks, insurers, and companies with misunderstood asset-rich balance sheets that feature attractive valuations conducive to strong forward returns. |
Valuation Free Cash Flow Multiples Contrarian Undervalued |
ConsolidationThe fund's detailed analysis of Rentokil demonstrates focus on consolidation plays, particularly in fragmented industries where scale benefits create competitive advantages. Rentokil has acquired 200+ pest services companies over 10 years, with the Terminix acquisition making it the largest player in the attractive U.S. market alongside competitor Rollins. |
Market Share Scale Benefits Acquisitions Industry Leadership Competitive Moats | |
TurnaroundsSilver Beech explicitly identifies turnarounds as a key investment focus area that is broadly out-of-favor. The Rentokil investment exemplifies this approach, as the company struggles with Terminix integration challenges but offers significant upside potential once operational issues are resolved. |
Operational Improvement Integration Restructuring Recovery Distressed | |
| 2024 Q3 |
ValueSilver Beech focuses on constructing a portfolio of misunderstood companies at attractive prices. The fund's portfolio trades at significantly lower valuations than broader indices with a 2.1x price-to-book ratio versus 5.1x for the S&P 500. The strategy emphasizes downside-oriented investing in companies that can win in extreme market conditions. |
Valuation Misunderstood Downside Attractive Price |
Asset ManagementBrookfield's transformation from asset owner to asset manager represents a core thesis, with most intrinsic value now derived from management and performance fees. The private markets asset management industry shows resilience despite challenges, with Brookfield's fee-bearing capital growing 23% and expectations for substantial carried interest realization over the next three years. |
Private Markets Fees AUM Carry Transformation | |
Specialty RentalWillScot operates in the specialty rentals sector with contracted leasing revenues and rental growth opportunities. The sector benefits from construction rental equipment growing 1.5x faster than overall construction spend as leasing penetration increases. Specialty rental growth outperforms as customers demand more complex and customized solutions. |
Construction Leasing Penetration Modular Equipment | |
| 2024 Q2 |
ValueSilver Beech focuses on companies trading at low multiples of normalized earnings power and below intrinsic value. The portfolio trades at 14.7x forward P/E versus 22.7x for the S&P 500, while maintaining similar growth and operating metrics. The fund seeks companies with strong competitive advantages that are misunderstood by the market. |
Value Multiples Intrinsic Value Competitive Advantages Misunderstood |
Legal FinanceBurford Capital represents a niche alternative asset class involving funding legal claims in exchange for portions of awards. The company has achieved a 27% gross IRR track record over 15 years. Legal finance offers attractive risk-adjusted returns that are acyclical and less sensitive to economic volatility than other assets. |
Legal Finance Alternative Assets Litigation Risk-Adjusted Returns Acyclical | |
| 2024 Q1 |
ValueSilver Beech focuses on finding undervalued companies trading below intrinsic value. The portfolio trades at significantly lower valuations than the S&P 500 while maintaining similar growth and operating metrics. The fund seeks to capitalize on market inefficiencies and human nature-driven boom and bust cycles. |
Undervalued Intrinsic Value Pricing Power Market Inefficiency Valuation |
InfrastructureWillScot Mobile Mini represents the fund's infrastructure investment theme, providing mission-critical modular building units and storage space. The company benefits from structural demand for flexible modular solutions and reduced waste/lower carbon footprint requirements. Infrastructure policy tailwinds support the thesis. |
Modular Buildings Construction Essential Services Policy Tailwinds Mission Critical | |
ConsolidationDentalcorp exemplifies the consolidation theme as an M&A platform consolidating Canadian dentistry. The company guides to acquiring $20M of pro-forma EBITDA annually. WillScot also participates in consolidation with its pending McGrath RentCorp acquisition to strengthen market position. |
M&A Platform Market Share Roll-up Sector Consolidation Acquisition |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| May 18, 2026 | Fund Letters | Silver Beech Capital | APO | Apollo Global Management | Asset Management | Asset Management & Custody Banks | Bull | New York Stock Exchange | alternative investments, Annuities, asset management, Equity, financial services, investment grade, life insurance, permanent capital, Private Credit, Value | Login |
| Sep 2, 2025 | Fund Letters | James Hollier | SWX | Southwest Gas Holdings, Inc. | Utilities | Gas Utilities | Bull | New York Stock Exchange | activist involvement, deleveraging, Pure-Play, rate base growth, Regulatory Lag, spinoff, utilities | Login |
| Sep 2, 2025 | Fund Letters | James Hollier | FFH CN | Fairfax Financial Holdings Limited | Financials | Property & Casualty Insurance | Bull | Toronto Stock Exchange | Book Value, Decentralized Management, Hard Market, Insurance Float, interest rate sensitivity, ROE | Login |
| Sep 2, 2025 | Fund Letters | Silver Beech Capital | SWX | Southwest Gas Holdings | Utilities | Gas Utilities | Bull | NYSE | deconsolidation, deleveraging, Equity, infrastructure, natural gas, Pure-Play, rate base growth, regulated utility, Regulatory Reform, Sum-of-parts, utilities, value unlock | Login |
| Sep 2, 2025 | Fund Letters | Silver Beech Capital | FFH.TO | Fairfax Financial Holdings | Financials | Property & Casualty Insurance | Bull | TSX | Book Value, Canada, capital allocation, Equity, Float Model, Hard Market, Insurance, Property & Casualty, Reinsurance, Rising rates, ROE, underwriting | Login |
| Jun 16, 2025 | Fund Letters | Silver Beech Capital | FR | First Industrial Realty Trust | Real Estate | Industrial REITs | Bull | NYSE | cap rate, Coastal Markets, development, e-commerce, industrial REIT, land bank, Logistics Real Estate, Replacement Cost, Same-Store NOI, supply chain, Supply Constrained | Login |
| Mar 26, 2025 | Fund Letters | Silver Beech Capital | RTO | Rentokil Initial | Commercial & Professional Services | Environmental & Facilities Services | Bull | NYSE | activist involvement, consolidation, Equity, M&A Integration, pest control, recurring revenue, Route Density, Scale Benefits, turnaround, US Relisting, Value | Login |
| Nov 27, 2024 | Fund Letters | Silver Beech Capital | BN | Brookfield Corporation | Financials | Asset Management & Custody Banks | Bull | NYSE | alternative assets, asset management, Carried interest, Corporate Transformation, fee growth, infrastructure, Private markets, Real Estate, Value | Login |
| Nov 27, 2024 | Fund Letters | Silver Beech Capital | WSC | WillScot | Industrials | Trading Companies & Distributors | Bull | NASDAQ | asset-light, capital allocation, Construction Equipment, M&A, Modular Buildings, regulatory environment, Rental Penetration, share repurchases, Specialty Rentals | Login |
| Aug 13, 2024 | Fund Letters | Silver Beech Capital | BUR | Burford Capital | Financials | Specialized Finance | Bull | NYSE | Acyclical Returns, alternative assets, Argentina, asset management, Commercial Litigation, Intellectual Property, Legal Finance, Litigation Funding, returns on equity, Settlement Recovery, Specialized Finance, YPF case | Login |
| May 15, 2024 | Fund Letters | Silver Beech Capital | WSC | WillScot Mobile Mini | Industrials | Trading Companies & Distributors | Bull | NASDAQ | construction, Equipment Rental, high-ROIC, Infrastructure Services, market leader, Modular Buildings, oligopoly, Pricing power, recurring revenue, value-added services | Login |
| May 15, 2024 | Fund Letters | Silver Beech Capital | DNTL.TO | Dentalcorp | Health Care | Health Care Facilities | Bull | TSX | Canada, Cash-Pay Healthcare, defensive, Dental Services, essential services, Government Subsidies, Healthcare consolidation, M&A Platform, recurring revenue, Utility-like | Login |
| TICKER | COMMENTARY |
|---|---|
| APO | In the first quarter, we initiated a large position in Apollo Global Management. The market has penalized Apollo for its complexity, underappreciated the durability of its growth, and lumped it in with peers exposed to a wave of private credit anxieties from which we believe Apollo is largely insulated. Apollo's operating model is best understood as three integrated engines: An alternative asset manager managing capital on behalf of Athene, third-party insurers, institutional investors, and private wealth clients; A fully integrated life insurer—largely Athene—that originates long-duration life and annuity liabilities, supplying captive, permanent capital; An origination machine producing credit assets through owned lending platforms. At Apollo's quarter-end share price of approximately $111, we believe the asset management business trades at roughly 25x after-tax FRE per share. In our base case, we believe Apollo is worth approximately $160 per share, more than 40% above the quarter-end price. In an upside case where strong AUM growth proves persistent, we believe the shares are worth more than $210. |
| ET | Our two long-standing energy holdings, Greenfire Resources and Energy Transfer, directly benefited from the energy supply disruption. Our positions in these energy companies long predate this past quarter's events and reflect underwriting decisions based on business quality and price, not macroeconomic forecasting. |
| GFR | Our two long-standing energy holdings, Greenfire Resources and Energy Transfer, directly benefited from the energy supply disruption. Our positions in these energy companies long predate this past quarter's events and reflect underwriting decisions based on business quality and price, not macroeconomic forecasting. |
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